What does it mean to outpace inflation?

To outpace inflation means to make more money than the price of things goes up.

Imagine you have a piggy bank full of coins. Every year, your mom gives you some extra coins for being good. But at the same time, the candy you love gets more expensive, like going from 1 coin per piece to 2 coins per piece. If you get enough extra coins each year, you can still buy as much candy as before (or even more). That’s what it means to outpace inflation.

Inflation is like a sneaky little kid who keeps making the things you want cost more and more. You might have 10 coins in your piggy bank, but if everything gets more expensive, those 10 coins don’t go as far anymore, it’s like having fewer coins to buy the same number of candies.

If you get more coins each year than the price of candy goes up, then you outpace inflation. It's like getting a bigger piggy bank every year so you can still buy all your favorite treats, or even get some extra ones!