system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Doesn't it make more sense to spend than save, considering inflation is degrading the value of my savings year by year?

To a certain extent of course.
gpt
This is precisely why the Federal Reserve has targeted inflation in the first place. It punishes people who keep their assets in cash. They want money to keep moving because that's better for the national economy.

However, if rather than saving in a bank you invest the money in something like mutual funds it insulates you from inflation concerns. Because your assets aren't in "dollars" anymore if the value of the dollar falls your assets aren't affected.