How Does Lent someone money but value has decreased due to inflation Work?

Lent someone money, but because of inflation, the real value of that money has gone down, like giving a toy that’s now worth less than when you gave it.

Imagine you have a piggy bank full of cookies. You lend your friend 10 cookies so they can buy a new game. But then, the price of everything goes up, the game now costs 12 cookies instead of 10! That means even though your friend got the game, the value of what you gave them is less than it was before.

Inflation is like when all the prices in a store go up at once. It's as if the store owner added more stickers to every item, making everything cost more cookies, candies, or toys.

When you lend someone money (like cookies), and inflation happens, the person might need more money later because things are more expensive. That means the value of your original loan is less than it was when you gave it, kind of like your cookie became a smaller treat!