Money basics
Inflation: how it eats your savings and how to protect them
What UAH 100,000 will buy in 5 and 10 years, how the real return differs from the rate in the contract and what actually protects you from inflation.
Money basics
The core ideas you need before making money decisions: inflation, interest, risk and financial goals. Start here if you are just getting your finances in order.
Articles
Where to start with personal finance
Financial literacy is not about knowing every term. It comes down to a few habits and a few ideas that keep you from losing money on things you could have foreseen. This section explains exactly those: inflation, interest, risk, credit history and financial goals.
People often jump into investing before they have a reserve and control over their spending. Then the first unexpected expense forces them to borrow or sell investments at a loss. It is safer to go step by step.
- 1TrackingKnow where the money goes
- 2Emergency fundAt least 1 month of expenses
- 3DebtClose the most expensive first
- 4SavingPut aside 10-20% of income
- 5InvestingMoney you won't need for 5+ years
Key ideas
- Inflation is a rise in prices. Because of it, money without interest buys less every year. More in “Inflation: how it eats your savings”.
- Real return is what you earn after tax and inflation. Compare this, not the rate in the contract.
- Compound interest is interest on interest. Over a long term it produces most of the result. See the article and calculator.
- Emergency fund is a reserve covering 3-6 months of essential expenses. How to build one is explained in a separate article.
FAQ
What is financial literacy?
It is the ability to make money decisions based on numbers: planning spending, having a reserve for the unexpected, comparing loans and deposits by their real cost and understanding how inflation and interest change money over time.
Where do I start if I have little money?
With tracking and a small reserve. Look at where your money went over the last 2-3 months and start saving at least 5% of income on payday. The first target is one month of essential expenses.
Do I need to be good at maths?
No. You only need a few ideas: interest, inflation, real return. Calculators handle the hard calculations, and in our articles we show every example step by step.