Texas savers face inflation woes in Dallas, Houston metros

DALLAS (KDAF) — Many Americans see their account balances growing and assume they’re building wealth, but don’t realize how much of that growth could be canceled out by inflation and rising prices. 

A new study by RealWorldInvestor.com has calculated how inflation will erode Americans’ savings over the next four decades, revealing stark regional differences in how much of their interest gains savers will actually keep. 

The analysis also examined 29 major metro areas across the country to understand how inflation’s impact varies by location. 

In Texas:

Rank	Metros	Initial balance	Interest gained	Lost to inflation	Net gain	Real value
17	Dallas-Fort Worth-Arlington, TX	$8,000	$36,782.66	$30,812.35	$5,970.31	$13,970.31
22	Houston-The Woodlands-Sugar Land, TX	$8,000	$36,782.66	$29,066.89	$7,715.77	$15,715.77

Savers in the Dallas-Fort Worth-Arlington metro area will see much of their interest gains eroded by inflation over the next 40 years. Starting with an $8,000 balance and earning 4.4% annual interest, residents will accumulate $36,782.66 in nominal gains by 2064, but will lose $30,812.35 to inflation, meaning 83.8% of their interest is effectively wiped out. In real terms, their balance grows to just $13,970.31.   

Houston-area savers fare slightly better than their North Texas counterparts, keeping $7,715.77 of their $36,782.66 in interest after 40 years, meaning 79.1% of their earnings are lost to inflation. This results in a final inflation-adjusted balance of $15,715.77 from the original $8,000.