Collect bank ads or pamphlets on savings accounts from your local bank to examine the variety of savings options offered. Circle the interest paid for each type of savings account. Then arrange the savings options in order, from smallest to largest interest paid. Read about each option carefully and circle the pros and cons of each. Inflation is an overall rise in the level of prices throughout the economy.
Inflation reduces the buying power of money.
Add to that the taxes you must pay on earned interest, and you lose more money. Collect information pamphlets on checking accounts from local banks. Assume you are a high school graduate or a college student and you want to open your first checking account. Weighing costs and benefits of each checking option, decide what account is best for you. For people your age, choosing to save rather than spend carries with it a huge opportunity cost.