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Glossary entry · Money in motion
Inflation
Definition
The rate at which prices of goods and services rise over time. The number in your account stays the same, but it buys less. Even a "safe" savings account loses real value when inflation outpaces the interest rate.
Example
€10,000 left in cash for 30 years at 3% inflation is worth ≈€4,120 in today's purchasing power.
From the lessons
Lesson · 02
Inflation
This term appears in a longer lesson, where the idea gets the proper treatment with examples and a working visualization.
Read the lesson →Related
Money in motion
Compound interest
Interest paid not just on what you put in, but on the interest you have already earned.
Read →Interest rate
The percentage something pays — or costs — per year.
Read →Return
The gain (or loss) on an investment, usually expressed as a percentage per year.
Read →Time horizon
How many years until you actually need the money. Changes everything else.
Read →