Money & WorkFact

€10,000 under the mattress is worth €6,730 in 20 years.

Purchasing power is the amount of goods a sum of money buys. At 2% inflation per year, prices rise by a factor of 1.49 over 20 years. Your €10,000 then buys only what costs €6,730 today. At 4% inflation it would be just €4,560. The banknote stays the same; the shopping cart gets emptier.

Useful: Always compare savings rates with the inflation rate, not with zero.

Source: en.wikipedia.org

InflationKaufkraftSparen

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