Something's Eating Your Money!
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- Опубліковано 6 лют 2025
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The money that you're saving is worth less every year...why is that? And what can you do about it?
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Derek Borsheim
Images by: Shutterstock
Music by: APM
SOURCES:
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So True! *If you don't get a 2% raise* then your salary has *decreased in value.* If you do get a 2% raise, don't be deceived! Your salary is *worth the same.*
Exactly right!
bro im subbed to you
@@nathanh3316 thanks Nathan! No surprise we follow similar channels!
2% raise? We demand 30% raise in India!
@@95sweets do you get a 30% raise every year? 🤤
Annual 2% raises aren't raises 😂 they're just "inflation-adjustments." Don't think most people understand that!
Sad thing is I'm happy just to get that. Lots of places don't even do that for employees.
@@uptbug yeah I'm in the same boat, as long as I get a 2% raise, I'm satisfied but it doesn't make much sense lol it's not really a raise
@@JohnHeng I don't know why I didn't think about it before but that is something I could try and negotiate for the next place. Annual CoLA in addition to any potential merit raises.
@@LG123ABC yup changing jobs or promotions are the only ways to get real raises.
These companies are cheap and greedy. They spend millions on executive management while paying everyone else pennies.
Then they waste thousands on bringing in new hires because of their shit turnover rates
And a lot of companies doesn't even offer the inflation-adjustment pay raise. They are technically paying their workers lesser every year... And the worst thing is that people has no choice but to stick to their current job because of bad economy...
I have noticed the effects of inflation I used to be able to get Burger King spicy chicken nuggets for $0.99 now they are $1.69
😆😂🤣
I used to buy candy for 0.10 pesos now 2 pesos :(
I used to buy a pint of Guinness for €3.12 but now I pay a minimum of €5.70
*Argentina* am I a joke to you?
Burger king used to have 99 cent whoppers now theyre 2 for 6 dollars
I feel like you guys are my mom and dad telling me important life lessons and I can't thank you enough for it😍
Big facts!!!!!!!! I love them!
If you think they give you life lessons, talk to me!
Same❤️
Lol
@@tylerporter9624 oooooooooo
A surprising amount of people fail to realize the power of inflation 👎
For example, they're happy when they buy a home and after 15 years it's gone up in value--about the rate of inflation.
Better than going down...which happens as well.
I thought the point of buying a home was so that you didn't have to pay rent for the rest of your life
Yuuuupppp.
home price increase is not really due to inflation, it typically outpaces inflation. The real reason is that the federal government has guaranteed home loans and so the are given to everyone, thus making a greater demand for houses and driving up the price because everyone can pay more money for them.
And when you rent, you get...... nothing. So yeah, housing can be a great investment when you understand real estate.
I thought this was going to be a video on how much money people waste on food lol
Same
Me too. I've seen various studies saving the average american spends 2k/year on coffee, eats out 5 times a week, the lowest income people spend 9% of their income on fizzy drinks. Also the amount of food the average person wastes is shocking (I forgot the percentage/cost) Madness!
I thought this was going to be a video about how much people spend on restaurants.. lol
It's really the drinks that kill you when you eat out.
I usually always get a glass of water. When you order soda or alcohol that's an extra 5 bucks or more
Bahahahaha! Oh...that one's comin. ; )
Me too lol 😂 🙋♀️
Me too lol
You literally called this one out :P Their new video on eating out is here!
Cost of living has gone up significantly while same household income has been neutral for last 20-30 years
Many things have gotten a lot cheaper. It's only where government gets it's greedy hands involved that prices continue to rise.
www.aei.org/publication/chart-of-the-day-century-price-changes-1997-to-2017/
yhh its called robbery you can thank the banks, central banks and government for that :)
income has been dropping in real terms
@@agisler87 Don't lie to us Ayn
When I was a child in Brazil (early 1980’s) my father would go to the supermarket on the same day he received his paycheck and would buy everything for the whole month. A delay of one day would literally mean less food! Basically every home had a refrigerator and an extra freezer to store food. I remember that monthly inflation was reported with a 2-digit figure, hitting around 80% in one single month.
Hey, Madagascar - my beloved country made it to the video. And it's true, every year we get hit by cyclones coming from Indian Ocean and every year it gets worst. Climate change is real, people.
Great video - thanks for the enlightenment about inflation. Now more people knows about what the news is talking about when Feds want to cut or raise interest rates :-)
i wish you country well, it really seems to have a lot of potential to become a utopia, im from Botswana
Oh wow! How wonderful! It seems like such an incredible and unique place. So glad you're here! Stay safe this season!
sorry we never wanted to send cyclones
@@TwoCentsPBS It's one of the most wonderful place you'll ever visit if you have the chance to do so one day. Our country has its own problems but its welcoming friendly people and natural beauty (70-80% of plants and animals in Madagascar are unique to Madagascar only) will make up for it.
Sorry for diverting from the video topic but not a lot of people know about my country and any chance I get to tell them a little something, I take the opportunity :-) If you are a football (soccer) fan, recently we made a huge headline in the African Cup of Nations by making it all the way to quarter finals as a first time participant
I'm from Mada too, and people know us from the cartoon XD LOL @einstein110 > #ALEFA_BAREA
I'm in college now, but this video did more for my understanding of the fed in seven minutes than nine weeks in an AP Macro course. Bless you guys and the good work you're doing!
Almost anything college can teach you can learn for free on the web. Not to mention all the stuff college makes you study that you shall never need again in your life. Just remember that the mitochondria are the power house of the cell.
@@richardgonzales3341 That class was in high school, and as I'm on a full scholarship, I'll take the extra line on my resume, even if some of the information is less than applicable. I do value well-roundedness however! And quite love biology.
Faith LaVoie that's the one class I wish I have taken. too bad my high school never offered it
What university?!!! I am surprised at how many people don't understand how the reserve banking system works.
@@Scott-by9ks (see my reply above to Mr. Gonzales :) ) Either way though, not everyone has access to / the space to learn about some of the more complex parts of the economy! That's another reason I'm so grateful for channels like Two Cents for helping make topics like this accessible to all.
Thumbnail on point
A Nate O’Brien comment with only 7 likes? Something is wrong here...
Woah, a verified account with only 2 comments
Hey Nate... Kelly Stamps says hi.
Reply her email
I love the production value but simple ness of these videos. Keep it up!
Thank you so much!! We intend to!
This and other financial youtubers really helped the more dreary view I had of the future. Keep it up
It makes me sad that these videos weren’t available when I was in high school! I think all your videos should be mandatory viewing!! You do an AMAZING job of taking complicated topics and making them easy to understand. Thank you for making these videos!!
This past weekend I was looking through a sears catalog from 1972 (I had a good reason) I noticed some things that I was thinking "wow, that was cheap" I then ran the prices through a inflation calculator and realized "oh, that's about the same" except TVs, those puppies have gone waaaaay down in price, 400 bucks for a tiny color TV back then, 100 bucks for a much bigger color TV now.
Then, I looked up average gas prices adjusted for inflation, the price has actually stayed pretty consistent over the decades.
Of course, minimum wage doesn't move with inflation, which is why, adjusted for inflation, the minimum wage in 1972 would be nearly 10 dollars an hour today.
Your videos are so easy to digest, even though I've learnt all this is my economics courses, the way you guys contextualise it to real world events and explain its use for saving and investing really helps put things in perspective. Thank you so much!
Thank YOU for sayingso!
2Cents: *Makes video about inflation*
Me and my argentinean bros: Allow us to introduce ourselves
Bro I'm Venezuelan
argentina bros write that down🤣🤣🤣
Viste cuando sos de Argentina y podrías dar clases de inflación a los otros países. Qué triste!
Rindo com respeito 😅
Home prices only increased 3 to 6% per year since the 1930's until the 2000's when BANKs jacked up the prices of existing homes to fuel the mortgage scam that came to a head in 2008, where BANKS increased the cost of the home on paper to sell to investors who thought the mortgage was attached to a larger home. In 1999 a blue coller home was $100k, by 2006 the same home was $500K, so the BANK could bundle and sell that debt to an unaware investor in the for of a CDO or CDS, that home value fell to about $300K after 2008, leaving the home buyer hold a big bag of debt on a crap home. Now home prices are at the artificial bubble rate so banks can run the scam again, and keep unfortunate home buyers that did not loose their home and savings due to Realitors, Lawyers, and Bankers as a team, assigning home buyers with SCAM mortgages, thus the home buyer loosing a down payment and the home if they could not weather the SCAM. Ask Bill Moyers at PBS, he knows.
Daym... Man...
How sad the world we are living in
I'm a simple woman, I see a two cents video, I click!
When you're in a job for 20 years, getting raises and promotions, and they hire temps at the same salary you're making......or more
I noticed what eats my money the most is the taxes on everyday needs and items. A 5 dollar trip can turn into a 15 to 20 dollar trip keeping us more and more broke :/
Hey guys. I'm a fan of your videos, and also a Venezuelan. Thanks for mentioning my country in the way that you did in this video. You didn't "edulcorate" the message, but actually pointed the country's unthinkable inflation issue directly at the authoritarian (and criminal) regime of Nicolás Maduro.
Thank you very much, really.
The financial- wise parents i never had. sighs. I love you guys
Thank you Shai. SO lucky to have YOU!
We love you too. Now go eat your veggies, drink your water, and brush your teeth. ::yells out the window:: MAKE GOOD CHOICES!!!
The misinformation on this: the fed doesn’t decide how much new money is printed, that’s auto determined by points 1 and 2 you had
I disagree
What’s sad is i learned more in watching these videos than I did in my three years of undergrad studying economics. Please note I am not a slacker I attend almost all my lectures and have a 3.2 GPA in case someone tries to argue to that I should have paid more attention in class.
Taking inflation into account my 2% pay rise is actually a real terms pay cut 😳
Your videos always make me feel guilty about my financial status, but tough love is better than no love! Thanks, as always!
I appreciate the way you framed inflation as not an obstacle to be avoided, but a challenge to overcome.
Your graphics, animation and humor is perfect!
I didn't expect this to be an overview of savings vs investing. This was extremely well explained and should be taught in school.
I don't know if this is inflation or just our government adding too much tax but I remember soda to be just 7PHP back when I was young and now it's 10PHP and I'm not even that old yet.
Federal Reserve actually promotes inflation due to the Fractional Reserve banking.
lol They left that part out- inflation generally isn't a thing unless new money is being printed or there is a supply shortage of some kind. In a healthy capitalist economy, prices actually drop or stay neutral as wages rise.
@@Hybridhearted this video is so misleading. They make inflation and deflation like it is normal for money and leave out the fact that we don't have money we have currency that is stealing your time from you.
I honestly love every video. I learned more about finance watching these than ACTUALLY majoring in Finance at a University 😂
Oh dear! I don't know whether to be happy or sad about that. Lolz.
I love Two Cents because, unlike a lot of folks in the financial world, you don’t treat people like they’re dumb because they don’t know things or haven’t been doing them.
It would be cool to see a video about the impossibility of eternal economic growth! Seeing as we are running out of raw resources, and ruining our living spaces and all. Circular economics is really interesting.
Love that accidental BWUK on 1:15
A mac costs one Bitcoin? That must have been a really special Mac then! 🪙💻
Really good videos! I have watched like 30 of them in a week! Thanks for making the information so simple to understand
the real message = Bitcoin is the future, not cash
Venezuela is a socialist country that tied its economy to fiat currency of the US Dollar, it was bound to fail just like the US dollar is bound to fail. You’ll see what was once two cents (before 1913 two cents was actually worth something).
“Two tenths of a cent” (your two cents adjusted for inflation) housing costs are up due to over regulation of the industry. It’s too expensive to build with current over regs (there’s massive amounts of land around Austin, if it weren’t so over-regulated there’d be more housing built). Welcome to the Socialist States of America est. 1913. Minimum wages, SSI, medicare/medicaid taxes, unemployment insurance, environmental impact assessments, heavy permit fees, general contractor requirements, etc. labor costs alone make new house construction ridiculously expensive, now add all the government regulations foreign and local real estate investors sheltering their wealth in RE as a tax loop and voila.....massive expenses.
You wanna know the real reason real estate is so high though......? Mortgage backed securities....created by the government to pay for federal pensions, VA benefits, government student loans, etc. These 15 and 30 year mortgage programs with very low interest were created to finance the government (hidden tax) sneaky bastards.
Um education costs are massive because of government student loans......the government runs the federal student loan programs.....inflating universities costs (those schools are publicly funded by the way).
Wrong again two fifths of a cent (two cents adjusted for inflation)
Want better control of your personal wealth.....take it out of the hands of the irresponsible spenders (the us government) repeal the 16th amendment and abolish the Internal Revenue Service. Abolish the central bank system, and allow free markets to prevail, and fail without government interference.
Inflation is frustrating as wages never seems to catch up or equal inflation. Wages(work income) always seems to lag a little behind inflation usually showing a loss. How sad!!! This makes investing of huge importance! The scary part is the financially uneducated USA population; where basic understanding of social economics creates a problem. You've covered this in other videos, but it always needs to be brought up again to reinforce the importance of financial education. We really need to educate our population on finances, so that we don't fall for socialist authoritarianism as the Venezuelans have. The scary result of socialism that many don't understand. Hopefully "Two Cents" will shed some light on the importance of financial education.
let's abolish central banks and return to gold standard
One way to keep up with inflation to invest in things that adjust for it. When you buy stocks , you are actually buying an interest in whatever that company holds. That means land, buildings, equipment, tech, etc. In the long term , when inflation goes up, so do stocks. While stocks go up and down, they also give you dividends while you hold them.
I have owned stocks for decades and they’ve always more than kept up with inflation over the long term.
Darn I really thought that virus would have been Corona!
I love this channel. 👍
No
Hey! San Antonio is pretty great too! But yea, even we know Austin is more fun....
Thomas Jefferson said "if we ever created a central bank it would control us by inflation and deflation and our children would wake up homeless on the streets there forefathers conquered."
End the fed
Two cents predicted virus outbreak 9months ago
Actually the bank of banks are BYNM and State Street
I find it kind of offensive how this channel tries to teach young adults like they’re 12 year olds. Or maybe that’s just how sad the state of education is these days
most of us people are Jon snow when it comes to money... I know how to do the grocery without overspending but I've seen so many people uncapable to do that even in their forties
@@rita7070 Holy cow that's really messed up.
ua-cam.com/video/ish8c4u0hvo/v-deo.html
Inflation is why getting a raise is important!
I had a factory job out of high school where they gave employees a $0.25 raise each year. I told them that wasn't enough to even keep up with inflation and they just looked baffled.
So basically a person does all the responsiblethings, work 24/7 to save up money planning for vacations and other things and they can still get screwed over by inflation.
Well that just sucks...
How come when Madagascar starts producing their normal amount of vanilla, the price of vanilla ice cream does not go down?
Love your videos but that is One Cursed Thumbnail
Thank you 2 cents!✌️😎
Remember the Arby's 5 for $5 deal...?
2:40 it's very strange you mention mismanagement and corruption, but not socialism.
Seems to me you having some strange agenda on whitewashing socialism, like most leftist do.
Makes me worry, cause I like the channel so far.
Socialism is expensive and inevitably leads to inefficiency, powerty and autocracy.
What about increases in money supply?
The fed has destroyed 96% of the US$ purchasing power since it’s creation
I think it's worth talking about why a stock index increases in value at a rate faster than inflation, or match inflation as a minimum
cant i cancel out the inflation 2% by depositing my money in the bank for 2% annual interest rate?
No, you can't, because you pay taxes on bank deposits, so it will be less than 2%
Nobody:
Indians : Inflationt just 2%.Are you kidding me
Excellent videos, great background music, photogenic narrators with excellent expressions.
Investing > Saving, 9 times out of 10
I can name another thing eating my money... Taxation.
0:36 btw bitcoin doesn't experience inflation. On the contrary, because there is a finite amount of bitcoin its value it rising through time.
About a month ago Watermelons at Costco went from 5$-7$.
Inflation is real!
4:19 San Antonio is still over 5000 miles away from where I live!
In the UK the minimum wage goes up every year
And Bernie Sanders would lead us to Venezuelan proportions of inflation
That's funny, the Fed usually isn't interested in fighting inflation. We've had record low interest rates and huge amounts of quantitative easing.
Bitcoin is disinflationary
I love this show, but the dude looks like Anthony Kiedis on meth. Just kidding man, you guys are great! :D
im getting flashbacks from that time bitcoin absolutely dropped and everyone freaked out and lost their money.
Lot of misinformation in this video. Inflation doesn’t mean economy is growing and the idea an economy can grow “too fast” makes no sense. You can have inflation and a stagnant economy (stagflation). Inflation is just an expansion of the money supply
Scotiabank signed up my husband for a insurance without telling him. He paid hundreds of dollars when he didn't pay his credit card and told him he signed a agreement. He never used it and only gave a $70 refund when we asked. Beware of things you sign. Take the time to read the agreements and then sign.
That virus is called corona, 😃,jk its called the fed reserve😑
2:50 Good thing the United States of America has nothing to do with that at all
This is the most important channel on UA-cam. No exaggeration, because the things these people talk about, concern everyone's life today and in the future.
AND WHAT'S WRONG WITH A VACATION IN SAN ANTONIO?!?! Ha, I'm kidding, I know what ya'll mean, and I love my city Alamo City. Thank you guys for making this video!
Have I noted the effects of inflation? yes my country is full of venezuelans and the cheap workforce is hurting the already bad economy of my family
Inflation is a tax on your savings
6:03 ㅋㅋㅋ
Excellent tutorial. We could all save more money too by just changing our mindset and learn to do with less. Truth is some of the things we spend money on, we simply have alternatives, even the mundane things like paper towels!
You guys are the best...I learn a lot feom you 🤜🤛
Ok, 8% is still ridiculous! I've been investing for 20 years and I can tell you that there is no rhyme or reason to the stock market. It makes absolutely no sense and real estate has been my best performer by far! Small businesses preform better but are far more risky. I'm stacking cash looking for my next opportunity.
Maybe you could do a video about why people fear investing. How a lot of power and knowledge is held in the hands of very unaccountable few that can ruin everyone else in an instant.
As a teacher, we have to go on strike to even get a raise that goes near to meeting inflation. God forbid we ever have a pay increase that actually beats inflation. Great video by the way!
Inflation is the increase of the money supply.
So when the FED has to print more money to compensate for budget deficits, then the value of the money in your bank decreases.
Damn the Fed!
0:26 I get the joke (bitcoin being the money of the future) but you did a mistake here. Bitcoin doesn't have inflation. It's capped at 21 million units, and the program cannot change except if 51% of users decide to, which nobody wants as we're all very satisfied with having no inflation.
🤗💖😍Another great video that takes a complex financial topic and breaks it down into bite-sized, digestible pieces. That's why I always recommend your videos to my financial education for kids parents. I teach them how to help them grow a healthy wealth mentality in their kids (and themselves), teaching them things like goal-setting that actually works, and how to stop that negative self-talk in our heads that holds them back and then I can rely on you both to help me teach the basic financial literacy foundation. It's so wonderful ... Team work makes the dream work, as the saying goes! Great video, look forward to your next one. Will share this one with my members for sure! 🤗😍😍
Awwww thank you SO much!! You're awesome!
Vanilla is a bad example since the vanillin chemical is really easy to synthesise... and that is what many ice cream producers do. They just move between natural and artificial vanillin depending on cost. High end icecream (often identifiable by the small black specks in the icecream), however, relies almost entirely on natural vanilla, so does not have this option.
You can see this effect better with vanilla essence, which can have two products, natural and synthetic, and both. Depending on your country food labelling laws, those with artificial vanillin can not label as natural.
In the former Yugoslavia where we had hyperinflation people could take loans to build a house and 10 years later only pay the equivalent of a cup of coffee per month to pay it off.
Yay , thanks for mentioning my country in your video, keep up with your excellent financial education videos, cheers from a fan from Madagascar.