Ep 118: The Truth About Inflation Every Parent Should Teach Their Kids

Inflation is the gradual decrease in the purchasing power of money over time, meaning that the same amount of money buys fewer goods and services as prices rise. When inflation occurs, if your income doesn't increase at least as fast as the inflation rate, you are effectively becoming poorer even if your salary appears to be rising. For example, a $100,000 salary that once represented financial success may barely support a family today due to rising costs of housing, education, and daily expenses. This is why financial literacy and investing are crucial—money must work for you by growing faster than inflation to maintain your standard of living.