Glossary
Today's dollars
'Today's dollars' means that any amount you pay or receive in the future will have the same buying power as this many dollars today. For example, if you buy something worth $1000 now, in 10 years time, you would need $1220 ("nominal dollars") to buy that same thing (assuming 2% inflation). The $1220 nominal dollars in 10 years time is equivalent to $1000 today’s dollars. This means that the actual dollar amounts that you pay or receive are likely to be more than the figure quoted here, but it will have the same current buying power.
Inflation - is the rate at which the prices of goods and services increase over time. The effect of this is to reduce the purchasing power of money. For example, if you could buy something with $1000 now, in one years time, you would need $1020 to buy that same thing (assuming 2% inflation).
Browse the glossary
Here you'll find explanations of the many financial terms used throughout the Sorted website.
