In recent years, cost of living is consistantly increasing in every period. Consequently, people believe that savings should be done, especially for children and young adults, to ensure stability in life. In my perspective, saving can contribute safety in financial condition but it is not enough to overshadow the inflation. Instead, people should discover other alternative, which is investing money in the source that generate enough return.
It is widely acknowledged that when people save their money with the bank, they are able to gain the interest, which is in the rate that the bank stated. Therefore, most people deposit their money in the bank in order to have a cold money for emergency and gain interest at the same time. However, the interest rate from saving money in the bank is significantly less than the inflation rate. As a result, in the future, the present money from the savings along with the interest will worth less in the future.
In addition, there are numerous alternative that offer higher return rate. For instance, investing in financial
assets such as deventures and common stock yields higher rate than the bank’s interest rate and inflation rate. On the other hand, assets that have higher return rate come with higher risk. Thus, people should commence their learning about these matters since a young age to be able master investing skills and have a stable financial life.
All thing considered, inflation has raise the price of every products, so numerous people save their money to deal with the problem. Nevertheless, I strongly believe that, in the modern society, saving money solely does not help people overcome the burden of inflation. Finally, people should initiate their study in effective way to invest their money in the assets that have the rate of reture higher than the inflation.