In the face of likely upcoming global crisis, it is more than necessary to understand the basics of economics well, in order not to be surprised by rapid market changes. A great starting point for that is to fully understand the term “inflation”. Everyone must have heard about this term, and most of us know that it makes prices go higher, but there is much more behind that. I consider this knowledge crucial to dive into deeper parts of economics, and that is why I want to invite you all to watch the video below, even if you are already fully familiar with the topic. It describes problem well in a very simple way.
Questions:
1. Were you aware what are the causes and effects of the inflation before?
2. Do you protect your savings from the inflation? If yes – how do you do that?
3. Are you interested in economics and its influence on our daily life?
Comments
2. Right now, I have a couple of bank deposits, which are low interest, but it’s better than nothing. In the future I plan to invest in inflation indexed government securities (government bonds? I am not sure how to name it in English), but right now I can’t freeze the money for 4 years, which is the lowest period of such paper. Ten-year bonds are in my opinion a perfect way to save money for retirement, especially wrapped into special, tax free account, like IKE.
3. Yes, I try to be up to date with the condition of the stock market and inflation. I wish more people were aware of the impact of the government on our economy, which is going to make our everyday life much worse.
1. Yes I was. Unfortunately, in recent years you did not even have to read about such basic issues, it was enough to observe the situation in our country.
2. Unfortunately, despite the fact that I have had an investment fund for many years, its interest rate allows only partial protection against inflation. I haven't dared to invest my savings yet, but I'm still learning about it.
3. My knowledge of economics is very small. However, referring to the negative effects, I respect my work and the money it generates and I would like to have the greatest impact on what it is intended for.
I was aware, but this video explained it differently. It was helpful because it clarified some things in my head.
2. Do you protect your savings from the inflation? If yes – how do you do that?
Yes, I always try to protect them. I try not to keep the money "not working". I try to do some investments which grow faster, or at least the same as inflation. There was a moment before that we could benefit much with bank deposits because they had good interest rates, but now fighting with inflation is not that simple. As the crisis is coming, we might accept that we lose some part of our money, but buy things (not necessarily physical) that can arise in the future and cost more.
3. Are you interested in economics and its influence on our daily life?
Yes, I am interested in economics. I am learning how these mechanisms works and how visible are the effects in real life. I also compare how the governments and banks try to fight with the negative consequences of the market changes.
It was kind of logical to me, even though I didn't really think hard about this phenomena.
People want to earn more money as their grow older, but unfortunately so they can keep up with the inflated prices, but they don't know that their increase in pay also causes inflation.
2.
I think about investing my money in something that would be somewhat inflation prrof, something like immovables could be a good choice to put my saving in, but I still haven't done so yet.
3.
In school economics was boring to me, so I guess that no, but the grasping the basic concepts is crucial to better understand the world we live in.
I knew it. They taught it in secondary school. Inflation is the process of increasing the general price level of goods and services in the economy. This increase must be permanent and sustained over time. This process is inevitably accompanied by a loss in value of money. High inflation can cause costs to rise faster than productivity, which will translate into lower profits for the company, and this in turn can result in cuts in employment and even bankruptcy. The rise in prices results in a drop in the purchasing power of money and, consequently, in a drop in real wages.
2. Do you protect your savings from the inflation? If yes – how do you do that?
I have one third of my savings in euros
3. Are you interested in economics and its influence on our daily life?
I am interested and read that the April survey of the economic situation in the Polish industry turned out to be the worst in history," informed GUS. Such a weak mood leaves no doubt that there is a recession in Poland. The average mind can guess that if there is no one to buy, it cannot be sold. Hence the falls. The strong holding of a frozen economy leads to the spending of public money in total, it is unknown what for if people do not buy. It will not be possible to maintain jobs in tourism or catering.
Yes, I was aware about the causes and effects of the inflation, however this video was very informative and interesting to watch. The author named key causes and this video made things clear for me.
2. Do you protect your savings from the inflation? If yes – how do you do that?
Inflation is something we cannot protect ourrselves against because it is something that describes the purchasing power of the money. We will still need to purchase, and usually with money. A side effect of inflation is usually devaluation against other currencies. So one of the ways to deal with inflation for me is not to keep the money in my national currency over time, and only convert from a more stable currency when I need to make purchases. Another way is to invest in something tangible that can easily be sold, like jewelery, however, not sure that it is 100% safe, probably also have some drawbacks.
3. Are you interested in economics and its influence on our daily life?
Yes, definitely, I am interested in economics, I cannot say I am following news about economics on a daily basis, however I know some basic definitions, terms, not very deeply, however I think at the level, which is enough to understand and analyze the current situation.
2. I’m considering that now. It’s painful to see your cash savings slowly diminish and not to do anything about it. I heard that gold is a reliable asset during a financial crisis. Looking at the price of gold now, other people share this view.
3. Everyone who wants to increase their income should learn economics. Not understanding economic processes doesn’t mean you can escape their consequences.
If I knew the causes and effects of inflation well, I would probably be a professor and habilitated doctor. I believe that everybody knows everything they need in this area. Moreover, what is good for others is bad for others and vice versa. It's the same with causes and effects. It all depends on the perception of the world.
2. Do you protect your savings from the inflation? If yes – how do you do that?
Everyone tries to protect their savings, if they have it, as best they can. My method is maybe not popular but effective. Investment. I try to invest in what I gain, as far as I have resources, not losing. That's all.
3. Are you interested in economics and its influence on our daily life?
Probably like every earning person. I'm interested in economics as much as I have a need. Not that I'm passionate, but I try to be up to date. I'm fascinated by the current price of fuel. Something impossible two months ago is possible today. Nature's path.
2. I would love to protect them, but apart from guarding them with my own body I have no idea how to do this effectively. I know people are investing in gold and play on stock market, but I have no idea how to do that I wouldn’t dare to try.
3. No, I’m not interested in economics at all, but my dad is, and my brother has a proper education in this topic, as an LSE graduate, so when I have some questions or doubts, I treat them as my personal advisors ;)
2. I don’t have savings so there is nothing to save, but if I had I would diversify it to multiple different assets.
3. I’m not into economics but i have basic knowledge
About the second answer - I am impressed, It seems that you are well oriented in the topic of money saving!
About the second unswer - I understand the problem, but still, partial protection is better than none!
I am glad to hear that you invest your money in order to keep their value at least at the same level as they had when you got them. I think it is crucial in these days!
About the last answer: It is the main problem with most of the subjects we have in school. They are boring because they are not lectured in an interesting way at all. Teachers often base on providing dry facts and nothing more.
About the latter - I am unfortunately aware of that. The nearest future is not bright at all for now.
About the part of your 2 answer - I am not sure if i can fully agree with you on protecting onself from inflation. Changing the money from the default currency to other/valuable papers can result in having more money than one would have when left on account in the end. For me it is enough to call it a protection.
Yes, I did. I had a basic of the economy at my previous university.
2. Do you protect your savings from the inflation? If yes – how do you do that?
Only by putting them in the savings account. Not any further actions. That could be because my savings aren't so impressive so far.
3. Are you interested in economics and its influence on our daily life?
Yes, I think it's an important field of science with a huge impact on our everyday life. I am trying to be up-to-date with the news regarding the economy as well.
2 / No had no experience in this area.
3 / Inflation can have both positive and negative effects on socio-economic processes.
No, I only knew that in some way due to the inflation everyone is losing money simultaneously.
2. Do you protect your savings from the inflation? If yes – how do you do that?
Usually investing in assets, or keeping them in different currencies, which is essentially the same.
3. Are you interested in economics and its influence on our daily life?
No, not really. Honestly, deep in my soul I wish that we, humanity, could come up with entirely different model for representation of wealth. Money itself, and numerous fields of scinence that developed around it; people and what they do for or because of money, just feels like a huge, enormous, absurd waste of potential, time and resources.
2. I haven’t thought about it earlier and now I see that I can and should do better in protecting my savings.
3. I just started to pay more interests in economics and I’m constantly trying to learn more about it and to understand it better.
Yes. I think right after computer science, finance is the thing that really excited me. Learning about it and reading news. I'm familiar with "school of life" youtube channel but I haven't seen this video before. For me it's not revolutionary but helps to organize fundamental knowledge in your head.
2. Do you protect your savings from the inflation? If yes – how do you do that?
It's very hard to in conservative and non-risky ways unless your savings and significant. Currently I would say my savings are in low-end so I limit myself just to diverse investment wallet.
3. Are you interested in economics and its influence on our daily life?
I think I've partly answered that one in the response to first question. So the short answer is yes, I do care and read on it regularly
Yes, I was fully aware what are the causes and effects of inflation. I’m worried that the inflation will skyrocket when we are done with this coronavirus stuff.
2. Do you protect your savings from the inflation? If yes – how do you do that?
I try to protect my savings from the inflation just by investing it in some of my businesses. I think it’s the best option, because if you just leave them laying on the account, the interest rate is lower than the inflation so you end up losing money, without doing anything.
3. Are you interested in economics and its influence on our daily life?
I’m interested in economics but I wouldn’t say that its my passion. I’m much more interested than average person but I can’t say it’s my hobby or anything like that.
Yes, i am really deeply into banking and finance market .
2. Do you protect your savings from the inflation? If yes – how do you do that?
No, I have kind of shopping addiction so I don't have much savings. Every time I have more money than I need i am buying something new.
3. Are you interested in economics and its influence on our daily life?
Yes, becouse it's this kind of knowledge that has huge impact on eout lives.
Yes, I'm quite up to date on this topic. I'm interested in this, but I learned a little more from this video.
2. Do you protect your savings from the inflation? If yes – how do you do that?
My savings are not very high so for now I only try to hold back with large purchases, but I think that if my savings were larger I would invest in gold.
3. Are you interested in economics and its influence on our daily life?
Yes, it is a very interesting topic, there is always something going on and there are a lot of variables. I follow this on a regular basis and learn a lot of new things.