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Inflation: the silent thief

Why cash is the riskiest 'safe' choice.

The idea

Ever notice how candy and movie tickets cost way more than they used to? That slow rise in prices is called inflation, and it quietly shrinks what your money can buy. Cash hidden in a piggy bank loses buying power every year. That's why investing — which can grow faster than inflation — matters for long-term money. 🎈

Words to know

Inflation: The slow rise in prices over time, which means the same dollar buys a little less each year.
Buying power: How much stuff your money can actually buy — inflation eats away at it.
Nominal vs real return: Nominal is your raw growth; real return is what's left after subtracting inflation.
VOO / S&P 500: VOO is an index fund tracking the S&P 500 — about 500 of the biggest US companies.
HYSA: A high-yield savings account — a bank account that pays more interest than a normal one.
TIPS: Treasury Inflation-Protected Securities — government bonds that rise with inflation to protect your money.

Try it — no account needed

Inflation eats 3% of your cash every year. You have $1,000 from a summer job. Where should you keep it for the next 10 years?

In the full lesson

1Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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