STRUCTURED LEARNING FOR YOUR NEXT STEP

Inflation explained.

A rise in the general level of prices over time, which changes purchasing power. A nominal account balance and its value in today’s money can therefore tell different stories.

Planning

Inflation

A rise in the general level of prices over time, which changes purchasing power. A nominal account balance and its value in today’s money can therefore tell different stories.

Example: A future expense may cost more even when the item is unchanged.

Watch for: Comparing future money with today’s costs without stating an assumption.

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