Saturday School: The Real Impact of Inflation

Watch this video to learn the basic concepts surrounding inflation, and how a rise in prices can make some investments look better than they really are.

Saturday School: The Real Impact of Inflation Photo by Bartolomiej Pietrzyk / Shutterstock.com

Over time, things tend to get more expensive. The inflation rate measures this rise in prices.

Surprisingly, tracking the actual increase in the cost of goods and services is a somewhat controversial activity. Watch this video from Khan Academy to find out why.

You’ll also learn other key concepts, such as the difference between price inflation and monetary inflation. And you’ll find out why a house purchased for just $10,000 in 1950 — and worth hundreds of thousands of dollars today — might not be as good an investment as it appears on the surface.

How do you protect yourself from inflation? Let us know by commenting below or on our Facebook page.

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