I'd very definitely disagree with the above - I'd say it's pretty certain that most of the West is going to go through a reasonably severe inflationary period, judging by economic history at least. Even if it doesn't, with interest rates so low cash is going to do nothing for you.

FWIW, if you know where you want to live for the next ten years or so, buy a place outright for cash. Worst case scenario, if house prices continue falling you've still got a roof over your head mortgage free.

It's probably worth putting some of your money in gold too as a hedge.

I'd certainly agree with the 'play' money idea as long as your family circumstances allow.