Save in a period of inflation

A young person made this argument, "What is the point of saving when prices will increase next year. It is better to spend now."

Here are my views:

1. Do not spend on unnecessary and expensive things.
2. If more people curtail their spending, prices will come down
3. You can invest your savings in equities and properties, to earn a return that beats inflation
4. Invest in a low-cost fund to achieve diversification. It also allow you invest in small amounts.

Inflation is caused by too many people spending too much in the fear of increasing prices in the future.

Read this FAQ:
http://www.tankinlian.com/faq/savings.html