← Money Rehab with Nicole Lapin
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Lately, I've been trying to travel more.
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I work too hard and life is
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too short not to enjoy myself. That's why I'm so excited about Chime's new perks for cardholders. Chime has added airport lounge access to its travel card, but that's not even the best perk they offer the Chime Travel Concierge to help schedule flights, book hotels and plan entertainment on your next trip. I can totally see how useful that will be as I explore the world. Chime is changing the way people bank. They offer the most rewarding fee free banking. You're not just switching banks, you're upgrading to America's number one choice for banking with a Chime checking account. Chime is not just smarter banking. It is the most rewarding way to bank. Join the millions who are already banking fee free today. Head to chime.com/mnn that is chime.com mnn. It only takes a few minutes to sign up.
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Chime is a fintech, not a bank. Banking services for MyPay and Chime card provided by Chime's bank partners. Optional products and services may have fees or charges, stated annual percentage yield and cash back for Chime prime only. No minimum balance required. Checking account ranking based on the J.D. power survey published October 20, 2025. For more information on APY rates, MyPay Spot Me and travel perks, go to Chime.com disclosures I'm about to head out
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on a trip for 10 whole days.
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I'm actually not going far from my home in la.
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I wanted to minimize travel time and maximize leisure. I'm going out of office up on my inbox and retreat from the world to rest. I don't think I've ever gone away that long in my entire life, certainly not in the last 20 years. Honestly, it's a little scary what will happen at work if I'm not always in my inbox and working on deals. As you can tell, I have a lot of anxiety about going and guilt. One thing that helps me feel better about taking a break is that I know I can list my space on Airbnb while I'm away instead of sitting empty. Your space can generate some extra income and help offset the cost of travel. It's a simple, practical way to make use of what you already have. If you've got upcoming travel plans, it's the perfect opportunity to list your space. And now hosting is easier than ever. With Airbnb's co host network, you can hire a vetted local co host to take care of the details for you. A co host can create your listing, manage reservations, handle guest communication, and even provide on site support so the stay runs smoothly even when you're away. You get to share your space with someone traveling to your area while you're off making memories somewhere else. If you've considered hosting but need a little help, find a co host@airbnb.com host my company has expanded a lot over the last year, which means we've had no choice but to bring on some serious talent for roles we couldn't survive without. Like a video producer. Now this isn't just any role. We're talking about someone who needs real experience and a legit skill set, not just someone who knows how to work their iPhone. Which meant this was a job for Indeed Sponsored Jobs. So spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results when you need the right person to cut through the chaos. This is a job for Indeed Sponsored Jobs and listeners of this show will get a $75 sponsored job credit to help get your job the premium status it deserves@ Indeed.com podcast just go to Indeed.com podcast WR now and support our show by saying you heard about Indeed on this podcast. Indeed.com podcast terms and conditions apply. Need to hire this is a job for Indeed Sponsored Jobs.
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I'm Nicole Lapvin, the only financial expert you don't need a dictionary to understand it's time for some money rehab. I posted something a few weeks ago that honestly, I did not expect to blow up the way it did. It was about my daughter and the accounts I opened for her. And the line that seemed to hit the hardest and get most residents wasn't actually about the accounts at all. It was this. This wasn't just financial planning. It healed something within me. Because when my daughter was born, I didn't just open savings accounts for her, I opened the ones I wish someone had opened for me. I set up a 529 for education, not because college is guaranteed, but because options matter. I grew up watching people make decisions based on what they could afford in that very moment, not what they actually wanted in the long run. And I didn't want that for her. When I posted this, I got a bunch of messages from parents, from people who had never had these conversations with their parents, from people who grew up in households where money was the source of dreams, dread, not a tool, and who are now trying to break that cycle for their own kids. So today I'm going to go deeper into the accounts that I open for my daughter. These will help you with your kids, but it might help you with something for yourself as well. And let's double click on the account that I just mentioned. The 529 plan A 529 plan is a tax advantaged investment account for educational expenses. You've probably heard of it. What you might not know though, is that it is far more flexible than it used to be. Yes, it covers tuition, books, room and board, even a required laptop. But it can also be used for K through 12 tuition, up to 20K per year, trade schools, apprenticeships, and even some international institutions. And thanks to a relatively new change, if your kid doesn't use the money for school at all, you can roll up to $35,000 of unused 529 funds into a Roth IRA in their name as long as the account has been open for at least 15 years. That means that college savings can become retirement savings. And that is a massive, massive shift. Here's what I want to tell every parent who's just had a baby. Open the 529 before the rest of life gets really loud and messy. The math on time is unforgiving. If you contribute 250amonth from birth, assuming a roughly 7% average annual return, you're looking at well over a hundred K by the time your kid is 18. And over the course of those 18 years, you'll have only contributed about $54,000 to grow the account to to a hundred thousand. But if you wait until your kid is, let's say 10 to start, that account will end up being closer to $30,000 by the time they turn 18. Same monthly contribution, very different outcomes. That's what compounding does for you when you're early. Now here's the move that most parents don't know about. The IRS allows for something called super funding. You can front load 5 years worth of contributions up to $95,000 per beneficiary without triggering federal gift tax as long as you don't contribute again during those five years. And if you need a refresher on the federal gift tax rules, I just did an episode about that and I'll link it in the show notes. So if you come into some bonus cash, this is one of the smartest places to direct it. One lump sum that gets 18 years of tax free growth to do its thing. And just to really follow the money trail here in the last example, I said contributing 54k spread out over the course of 18 years could grow to over 100k. If you invest that 50 54k all at once when your kid is born and let it grow for 18 years, that initial investment could grow to over $182,000. Again, compound interest. Glorious. The eighth wonder of the world. And one more thing on 529 you're not locked into your own state's plan. Your state might offer a tax deduction for in state contributions, which is definitely worth checking. But if your state does not, you can absolutely shop around. Nationally, plans from Utah, Nevada and Ohio consistently rank among the lowest best performing plans in the country. You can use a 529 plan from any state, but if you use your home state's plan, you might get some extra tax perks. So definitely treat it like any other investment decision and shop around. Here's the second account I opened for my daughter, a custodial brokerage. This one is different in feel and in function. A custodial brokerage is a regular investment account held in your kid's name, managed by you until they hit the age of majority. In most states that's 18. In others it's 21. So you might see these called UGMAs or UTMAs, which sounds like something you would name an evil stepmother in a Disney movie. But these counts are actually a fairy tale. Unlike a 529, there are no rules about what that money can be used for. College, a car, a down payment, a business, a gap year in Bali or nothing. And just let it keep growing. The flexibility Here is the point. Here's the honest trade off though. Because these assets legally belong to the kid and they count more heavily against financial aid eligibility than a 529. Does a student's assets reduce aid eligibility at a rate of 20% compared to the under 6% for parent owned assets. So if financial aid is part of your plan, definitely factor that in. So this account works best when it's paired with communication. Open it early, let them watch it grow and critically talk to them about it. Frame money as an important tool for their future. Not arcade tokens. That's actually why I opened this account for my daughter. To show her that money can grow quietly in the background while you are out there living your best life. That investing does not have to be a full time job. It can be a habit and a lucrative one. Now for account three, the custodial Roth ira. This is one that gets people's attention because most of my clients at my firm, Private Wealth Collective, have never heard of it for kids and this young. And when I say my One year old daughter has one. I understand exactly why a retirement account for a 1 year old sounds insane, but here's how it works. A custodial Roth IRA is a retirement account that a parent opens on behalf of the kid. You're the custodian, he or she is the beneficial owner. You manage it until they reach the age of majority and then it transfers fully to them. The account follows the same rules as with a standard Roth ira. Contributions are made with after tax dollars and the growth is federally tax free. And qualified withdrawals in retirement are tax free. Unlike custodial brokerage accounts and 529 plans with custodial Roth IRAs, parents cannot fund this account with their own income. Your kid has to have earned income from a W2, a 1099, from babysitting, from lawn mowing, anything really that's reportable to the irs. And there are contribution limits, just like with adult Roth Iras. The the limit in 2026 is 7500 bucks. Now I need to give you the number that changes everything, because the power of this account is almost embarrassing when you run the math. A one time contribution of 7,500 bucks into a Roth IRA, no additional contributions at all, would grow to approximately $600,000 over 65 years at a 7% average annual rate of return. For reference, The S&P 500 has historically averaged around 7% annually over long period periods of time. So a kid who starts a roth IRA at 15 and contributes $3,000 a year could have over $1.2 million by retirement age. And if your kid, like mine, starts earlier, the Runway is even longer. More time is more money. I really hate cliches, but this one is real. One more important note on the financial aid question. Unlike a custodial brokerage, the balance in a Roth IRA does not factor into federal financial aid formulas. That means it's not going to count against FAFSA calculations, though if withdrawals are taken, that income could affect the following year's eligibility. So it's a cleaner vehicle than a custodial brokerage. From a financial aid perspective, here's the last thing I want to say. I grew up in a household where money was reactive. You dealt with it when something became a problem. Bills were really stressful, Timing was really tight. There was no framework for thinking about the future because the present was always so loud. When I set up these accounts for my daughter, I wasn't just doing financial planning. I was actively rewriting the script. I was making a decision that she would grow up in a house where investing is boring and normal and totally expected. Not a privilege, not an emergency or compound interest. Works for her, not against her. Where she doesn't have to figure out any of this stuff in her 30s from scratch like her mom did. For today's tip, you can take straight to the bank. If your kid is making money through a side hustle or allowance, birthday money, whatever, help them make a spending plan. As important as it is to start saving early, make those custodial Roth IRA contributions. It's just as important to encourage them to spend some money too. I bet you weren't expecting me to say that, but you do want to encourage your kids to reward themselves for their work. Money should be fun. After all, the key is having a conversation with them where you help them decide how much to spend, how much to save, and how much to give away.