COLA (Cost-of-Living Adjustment)
Planning & BudgetingAn annual increase to benefits like Social Security designed to keep pace with inflation, based on the Consumer Price Index.
Example
Example: For someone earning $60,000/year trying to build a solid financial plan, understanding cola (cost-of-living adjustment) is a key piece of the puzzle. Applied to a monthly budget, this concept could help you save an extra $200-$500/month. Build your plan with our 50/30/20 budget calculator.