2006-07-11 22:09:48 · 3 answers · asked by goozbee 1 in Business & Finance ➔ Investing
Nothing.
Inflation means that you can do less with it. If you want to use your savings to fill up your gas tank (just an example because everybody notices this)
Now you can fill about 100 tanks with that money..in a few years when prices have gone up again and again... 50 if we are very unlucky. Lucky for you there is also interest the bank pays you for storing your money there.
If inflation is a high as your interest rate (it isn't but an example again) Then after any number of years you can still fill 100 tanks with that money.
Usually interest is a bit higher so after some years you can fill 105 tanks. If there was no inflation it would have been 150 tanks.
Just an example.
2006-07-11 22:12:43 · answer #1 · answered by Puppy Zwolle 7 · 1⤊ 0⤋
inflation will shrink your savings as your money will be worth less.
2006-07-12 05:14:05 · answer #2 · answered by no1special 5 · 0⤊ 0⤋
Nothing, other than reduce the purchasing power you have with them savings (e.g. things being more expensive than when you started saving).
2006-07-12 05:38:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋