Topic 3: Jobs: What are the different types of work?

What does inflation mean for your money?

Inflation is the when the prices of things like food, heating and petrol go up. If you’ve heard that the rate of inflation is on the rise, sadly, this means that the money you have right now, won’t buy you as much as it did before.

Let’s use Freddo chocolate as an example. Back in 2005, a Freddo was 15p whereas today, the SAME Freddo is now 25p.

So, your buying power can change over time. Inflation is usually quite low—and manageable.
It’s when it HIKES up QUICKLY that you should think about how to protect your money from losing its value.

That’s a good time to take advantage of discounts and bargains to help your money stretch further.
Inflation also reduces the value of your savings. So make sure you shop around for the best possible interest rates on your savings accounts. It may not totally offset inflation, but every bit helps.