How to Money – Episode #1036 Summary

Ask HTM: Gifting $ to Others’ Kids, Most Affordable Protein, & Snagging the 529 State Deduction
Released: September 15, 2025
Hosts: Joel & Matt (iHeartPodcasts)

Episode Overview

In this lively "Ask HTM" episode, Joel and Matt field a batch of listener money questions that span personal health, protein spending efficiency, gifting funds to others' children, and getting the best tax bang for your buck with 529 college savings plans. The show is packed with practical advice delivered in the best-friend banter style the hosts are known for. Listeners gain concrete takeaways on affordable protein strategies, optimizing 529 benefits, and how to generously support other people's kids financially—the smart way. The episode also dives into ongoing topics like soaring insurance premiums and the cultural pitfalls of convenience spending.

Key Discussion Points & Insights

1. Modern Spending Habits & Devices: Don’t Let Convenience Take Over

• Uber Eats Advertisements and Antisocial Consumption
  • Matt critiques a Michael Cera Uber Eats ad for encouraging antisocial, budget-busting behavior:

    "It's a budget killer, man… instead of maybe stepping out of your comfort zone and talking to someone new… pull out your device… you're literally spending money that maybe you don't even need to spend, and you're literally consuming when maybe you don't. You're not even hungry. On so many accounts, this thing…" ([04:24])

  • Joel agrees, warning about soothing discomfort with spending and tech:

    "We turn often to our devices or to consumption to soothe something else that's going on inside… it can lead to financial problems, which create even more anxiety in the future." ([06:09])

  • Both reinforce being mindful, leaning into discomfort, and not defaulting to consumption as a solution.

2. Affordable Protein: How To Get ‘Yoked’ Without Breaking the Bank

• Listener Clint from Iowa wants advice on affordable protein sources (already uses $1.50/serving powder from Sam’s Club) and whether buying fancier products is justified ([08:23]).
• Hosts’ Take:
  • Celebrate Clint’s financial discipline and his “money gear” allocation:

    "The fact that he is buying those cars in cash. He’s basically doing better than most folks who just have like one or two cars. Right. He’s got seven cars, so I’m totally fine with it." ([10:00])

  • Protein Powder Recommendations:
    • Matt loves Aldi’s Elevation Whey Protein for price and taste—$18.29 per tub, just $0.03 per gram protein, hard to beat.

      "A tub of that protein powder cost $18.29... that's my preferred metric of choice, which in this case is just $0.03 per gram of protein, which is amazing. Dude, it is seriously really tough to beat that." ([15:12])

    • Costco’s Orgain (pea protein) is a little more expensive ($0.05/gram) and less digestible for Matt.
    • Flavors at Aldi: Vanilla good, skip limited editions.
    • Add PB Fit powder for extra flavor.
  • Whole Foods as Alternative:
    • Joel: Whole chickens at Costco ($0.99/lb) are an excellent, extremely affordable source; eggs and beans also suggested.
    • Matt compares even organic chicken ($0.04/gram protein) as competitive with powders—whole food is ideal when possible.
  • How Much Protein Do You Actually Need?
    • Joel: "So much depends on what you’re doing physically...Americans are kind of obsessed with protein intake right now." ([16:48])
    • Both urge listeners to consider whole foods first, supplements as tools only if needed, and not overdo supplement spending.

3. Home Buying, Military Benefits, and 529 Optimization

• Listener Chris (Military, Early 20s) grapples with choosing a VA loan (0% down) vs. conventional (20% down), and whether to put excess cash into a 529 as a lump sum ([25:11]).
• Hosts’ Guidance:
  • On Mortgage Choice:
    • If you get a VA loan with waived funding fee, low rate, and reinvest the down payment wisely, VA loan makes sense—especially given Chris’ strong financial discipline ($300K+ invested by mid-20s: "Holy cow." - Joel, [26:08]).
    • Downside: Less equity if you move quickly; risk of bringing cash to close if home value stagnates ([31:55]).
    • Shop all lenders, including local credit unions (Matt mentions a 15/15 ARM at 5% as a good deal).
  • 529 Strategy:
    • Avoid large single-year contributions that surpass state deduction limits (example: in Georgia, $8,000/year per beneficiary is deductible). Spread contributions and maximize annual tax benefits.
    • Research which state’s tax benefits apply if you’re moving.
    • Don’t overfund—529 has limited withdrawal uses, though new rules have increased K-12 use limits.

4. 529 Plans: State Deduction Loopholes & Plan Flexibility

• Listener Ana (St. Paul, MN): Asks if using Schwab for 529s allows her to get Minnesota’s state tax deduction, or if she needed to use the state-specific plan ([33:52]).
• Advice:
  • In Minnesota, you can claim the deduction even with a different provider (like Schwab)—just save documentation and file extra paperwork.
  • Know your state’s unique rules (some are exclusive, others are flexible).
  • Don’t forget to invest the funds (not just save them in cash)—over 10–15 years, growth is crucial.
  • Use age-based funds or S&P 500 if you want simplicity.
  • The new $20K annual K–12 withdrawal limit (from 2026) increases flexibility.

5. Rising Insurance Premiums: How to Fight Back

• Facebook QOTW (Rebecca): Are $300 home and $170 auto insurance annual increases typical, and should she shop around? ([45:05])
• Hosts’ Take:
  • These increases aren’t unusual in the current market (insurance inflation outpaces CPI since COVID).
  • Absolutely shop around. Now is a prime time as rate disparity grows.
  • Use independent insurance agents (Trusted Choice) for efficient shopping, and press agents about all available discounts (alumni, autopay, defensive driving, military, etc.).
  • Raise deductibles if you can self-insure.
  • Consider usage-based discounts, even if temporarily sacrificing some privacy.

6. Gifting to Others’ Kids: 529 Withdrawals at 18

• Listener Jordan: Wants advice for what to do as his niece turns 18, with a $100/year gift in her 529—options include keeping it in the account, cashing out, or a Roth IRA rollover ([49:44]).
• Hosts’ Suggestions:
  • Joel: Don’t even suggest cashing out for a car (“Why tempt her?”); focus on education or Roth IRA transfer for compounding benefits.
  • Matt: For nieces/nephews, prefers fun, flexible gifts over ironclad rules; but once funded into 529, don’t liquidate (penalties); rolling over to a Roth may be best if education isn’t the path.
  • Ultimately, let it encourage good financial habits, but don’t be overly parental—it’s up to her journey.

7. Memorable Moments and Quotes

• Old Man Yelling at Clouds Moment:
  • Matt, on the Uber Eats ad:

    “Is my little... yet again, old man yelling at the sky sort of.”

• On Affordable Protein:
  • “A tub of that protein powder cost $18.29... that's my preferred metric of choice, which in this case is just $0.03 per gram of protein, which is amazing.” – Matt ([15:12])
• Cultural Trends:
  • “We’ve kind of proteinized everything. Think about, there’s protein infused water, protein infused coffee…” – Joel ([17:12])
• Listener Milestone:
  • “Holy cow…” – Joel’s reaction to 20-somethings with $300K invested ([26:08])

8. Miscellaneous: Beer of the Week

• Northwood's Life Golden Ale
  • Reminiscent of “swimming in an alpine lake,” clean and crisp—makes them nostalgic for fly fishing trips ([55:40]).

Important Timestamps

• [04:24] – Discussion of Uber Eats ad and devices’ impact on spending/culture
• [08:23] – Clint’s question: affordable protein
• [15:12] – Aldi whey protein recommendation
• [16:48] – Do you need as much protein as everyone says?
• [25:11] – Chris' home buying/VA loan/529 maximization dilemma
• [33:52] – Ana’s 529 deduction and plan choice question
• [45:05] – Insurance cost increase question and discussion
• [49:44] – Jordan on gifting to others’ kids (529/Roth/etc.)

Takeaways for Listeners

• Mindless convenience spending can wreck your budget and lead to cultural withdrawal—pay attention to what your money and devices are doing for (and to) you.
• Protein doesn’t have to be expensive—calculate price per gram and consider whole foods for best bang for your buck.
• Get the most from mortgage and 529 decisions by understanding your options and state-specific benefits. Plans change—flexibility matters.
• Shop your insurance regularly as rates fluctuate wildly, and don’t rely on loyalty for savings.
• Consider not just how you gift money to kids (yours or others’), but also how you encourage good financial habits in the process.

For more details, links, and tools: visit howtomoney.com.