Economics class: Cash Isas remain popular despite the drain of inflation
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Financial markets, inflation
Click to read the article below and then answer the questions:
Cash Isas remain popular despite the drain of inflation
Distinguish between real and nominal earnings. The average earnings chart in the following article may help: UK average earnings start to fall despite labour shortage
What is an ISA?
‘At the moment, keeping your money in a cash Isa means it is losing value in real terms at the fastest rate in almost 30 years.’ Explain why this is the case
Explain why a stocks and shares Isa may be a more attractive investment opportunity at this time
Evaluate whether surging inflation will push savers into riskier investments which potentially offer higher returns
Gavin Clarke, Emmanuel College
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