Money & Interest: The Oil of the Economy
It is very important to understand the role of money in today’s world. Financial institutions and banks exist solely to facilitate the economy, our day to day lives.
In any growing economy, there is bound to be inflation. This is where the general level of prices of goods and services increases over time. In Singapore, core inflation is at 1.9% (average for the past 10 years). Let us now take a look at some common financial products in the market today and 5 key learning lessons on beating inflation.
Common Financial Products Financial Product Yearly Interest (p.a) Loan Sharks – 30% Credit Cards – 24% Personal Loans – 6.0% CPF Student Loans – 2.5% Car & Home Loans – 1.5% Deposits Accounts + 0.5% Savings Accounts + 1.5% INFLATION + 1.9% Singapore Saving Bonds (SSB) + 2.0% Fixed Deposits + 2.5% CPF …