Money word

Inflation

The gradual rise in prices that makes each dollar buy a little less over time.

Inflation is why a candy bar costs more now than it did decades ago. It quietly erodes the buying power of cash sitting still. It's the honest reason investing exists: to give money a chance to grow faster than prices rise, so it keeps — and gains — its purchasing power.

Explain it to your kid

"When prices rise and money buys a little less."

Want to go deeper? How to explain inflation to kids.

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