Ukrainians Are Losing Money Because of One Mistake: A Banker Explains How Inflation Works
7 July 14:08
YOUTUBE
One of the most common mistakes Ukrainians make when managing their personal finances is underestimating the impact of inflation on their savings. Maksym Tsymbal, first deputy chairman of the board at Pivdenny Bank, spoke about this in an interview with the YouTube channel "Komersant Ukrainian".
According to him, money that is simply kept without using financial instruments gradually loses its real value.
“The biggest mistake is underestimating inflation. We mustn’t forget that inflation affects the hryvnia, the dollar, and the euro alike. It’s wrong to simply keep money in accounts and not let it work for you, because inflation erodes its value,” the banker explained.
Cymbal noted that savings left uninvested lose their purchasing power over time.
“If you had a certain amount of money sitting in your account five years ago, its real purchasing power has significantly decreased without investment,” he said.
Among other common financial mistakes, the banker cited low levels of financial literacy and discipline, a lack of diversification in savings, and decisions made under the influence of emotions.
“These can be emotional purchases or investments—for example, buying foreign currency or assets at the peak of a rally. In financial matters, it’s important to minimize emotions and act rationally,” concluded Tsymbal.
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