Inflation is the rate at which the cost of goods and services increases over time — meaning your money loses value if it isn’t growing. If inflation is 10% annually and your money is sitting in an account earning 2%, you’re actually getting poorer in real terms.

In this lesson, you’ll learn:

• How inflation works in real life (bread price in 2010 vs today)

• The difference between nominal value and real value

• How inflation affects your savings and why investment is the best defense

• Introduction to inflation-beating investments like equities and index funds

Activity: Use an inflation calculator to see how ₦500,000 today will reduce in value over 10 years.