Inflation, is the simple answer. But what causes this? Why couldn’t society just keep on keeping on with prices? Examples, a $0.25 for a candy bar, $0.75 for a fast food burger, $30k for a home etc. It worked then, so why not now, why not just agree to lower the prices of everything?
In: Economics
ELI5: Inflation makes money worth LESS tomorrow.
Investing makes money worth MORE tomorrow.
They want you to invest money and make it grow.
So they make money worth less if you don’t invest it.
So, remember the $100 you got for your birthday?
If you invest your birthday money today, then next year it might be worth $110.
But if you stick your birthday money in the bank to save it, then next year it might only be worth $98.
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