More Dollars, Still Not Enough?

In a made-up example, Nia has $100 saved for a bike that costs $100.

She waits. Her account earns $2, bringing it to $102. But the bike's price rises to $104.

Her balance is bigger. She still needs $104 − $102 = $2 to buy the bike.

Purchasing power means what money can buy. A growing balance doesn't always buy more if prices rise, too.

One bike price alone doesn't prove inflation across the economy. This example just shows why it helps to check both your balance and your goal's price. Real rates and prices can change.