Money Matters: By the time you finish reading this, you’ll either have a list to get rich slow… or you’ll go back to hoarding Funko Pops and hoping they appreciate.

Let’s be clear — inflation isn’t some abstract economic term buried in the Wall Street Journal. It’s the stealthy pickpocket. The grocery store aisle shrinkflation bandit.

The reason your “large” coffee now looks like it belongs in a dollhouse.

And if you don’t get deliberate about what you own - not just your income - inflation will take more from you than the IRS and your teenager’s appetite combined. Guaranteed.

Survey says: What Happens to $100 from 2000 to 2025?
(Inflation-adjusted — in today’s dollars)

• Put it in cash under the mattress: $47.76 — almost cut in half by inflation.

• Home (+0.4% over inflation): $110.17 — slow but steady growth beats inflation.

• S&P 500 Index Fund: $259.22 — nearly triple your buying power.

• Long-Term Bonds: $161.73 — solid, steady growth.

• CD/Savings Account: $78.36 — safe, but inflation still nibbles away.

• Foreign Market Stocks: $204.98 — strong long-term growth, but with more ups and downs.

Here is what on that portioned plate today:

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Setting up custodial accounts:

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📜Quote

The best way to teach your kids about taxes is by eating 30 percent of their ice cream. - Bill Murray

Today’s Main Event

Inflation-Proof Family: The Right Assets to Own at Every Age

You know what costs more today than it did ten years ago? Everything.

And you know what’ll cost more ten years from now? Everything… plus a “convenience fee” for the privilege of buying it.

Your kid’s socks? Thinner. Your cereal box? Smaller. The price tag? Bigger.

That’s inflation - it’s a mugging in broad daylight, but the guy’s wearing a suit and handing you a receipt.

Whether you’re 8 or 58, there’s a way to build an anti-inflation fortress before prices climb so high your morning coffee comes with an installment plan.

Ages 0–12: The Foundation Years

Yes, kids can own inflation-fighting assets (with help from Mom and Dad).

• Savings Account + Parent Match — Builds the habit early, teaches compound growth.

• Silver Coins — Tangible, holds value, and doubles as history lesson.

• I-Bonds Government-backed, tax-deferred, inflation-adjusted. A set-it-and-forget-it baby gift that beats 99% of toys.

Ages 13–19 — The First Hustle Years

Their time is worth less now than it will be later - perfect for learning and earning.

• Index Fund Custodial Account (S&P 500) — Let compounding start while acne is still in play.

• Used Equipment for a Side Hustle (lawn care, photography, resale) — Productive assets

• Valuable Skills — Coding, welding, design — skills can’t be inflated away.

Ages 36–50 — Peak Earning, Peak Risk

Inflation is now a thief with your address on speed dial.

• Rental Property — Rent rises with inflation, debt stays fixed.

• Dividend Growth Stocks — Income that grows faster than prices.

• Productive Land — Farms, timber, or leased land for solar/wind.

Ages 51–65 — Preservation + Cash Flow

Now it’s about keeping what you’ve built from being eaten alive.

• Treasury Inflation-Protected Securities (TIPS) — Guaranteed inflation adjustment.

• Annuities with Inflation Riders — Steady, rising income.

• Healthcare REITs — Demographic trend + inflation hedge.

65+ — Income Security Mode

Focus shifts to safety, steady yield, and liquidity.

• Treasury I-Bonds — Government-backed, inflation-adjusted.

• Short-Term Bond Funds — Lower risk, still earn above inflation.

• Cash Reserve in High-Yield Savings — Flexibility beats forced selling.

Custodial Accounts Made Simple

A custodial account is basically an investment account you open for your kid, but you get to run the show until they hit the so-called “age of majority” - 18 or 21, depending on how your state defines adulthood.

Then, like magic, the account - and every penny in it - becomes theirs.

Which is great if they’re responsible… and terrifying if their last big financial decision was spending $80 on a giant inflatable duck.

Two Main Types

1. UGMA (Uniform Gifts to Minors Act)

   • Allows financial assets only: stocks, bonds, mutual funds, ETFs, and cash.

   • Simpler and more common for families focused on investing in market securities.

   • Learn more from FINRA

2. UTMA (Uniform Transfers to Minors Act)

   • Broader: allows everything UGMA allows plus real estate, intellectual property, collectibles, and other tangible assets.

   • More flexibility, but rules can be slightly more complex.

   • Uniform Law Commission Overview

Taxes

• No contribution limits, but gifts above the annual exclusion ($18,000 in 2024) may trigger gift tax reporting.

• Investment income is subject to the kiddie tax:

  • First $1,300 tax-free.

  • Next $1,300 taxed at the child’s rate.

  • Above that taxed at the parent’s rate.

• IRS Publication 929 – Tax Rules for Children and Dependents

Why Use One?

• Long-term growth: Start early with low-cost index funds to outpace inflation.

• Teaching tool: Involve kids in reviewing statements and understanding returns.

• Flexibility: No restrictions on how the money is used once the child takes control.

Key Considerations

• It’s the child’s asset - counts more heavily in financial aid calculations.

• Once the child reaches the age of majority, you cannot stop them from spending it however they want — even if that means a used sports car instead of college tuition.

• Best suited for parents who want to grow wealth for their kids and teach financial responsibility along the way.

Until Next Time

What’s Up Next Week

So that’s the game - own the stuff that goes up when everything else gets more expensive, or spend the rest of your life chasing a dollar that’s running a little faster every year.

From piggy banks to pensions, it’s the same rule: if your money’s sitting still, it’s dying. You can either buy things that beat inflation, or you can keep feeding the beast while it chews through your wallet and calls it “the cost of living”.

In the end, there are two kinds of people: the ones whose money works harder than they do, and the ones who watch it waste away like an unguarded plate of cookies at a kids’ party. Pick the first group.

Next week, Nico talks budget nights for couples — keeping both your love life and your bank balance in the black.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.