inflation affects the purchasing power of my money. If inflation is high, the value of my savings decreases over time as prices increase. This means the money I have saved will not be able to buy as much in the future. Understanding inflation allows me to plan for the future, adjust my savings goals, and make informed decisions about where to invest my money to combat the effects of inflation. Additionally, understanding inflation can help me avoid making investment choices that may lose value over time due to inflation. Overall, being knowledgeable about inflation allows me to make smarter financial decisions and protect my financial well-being.
