The Stacking Benjamins Show: Episode SB1717 – A Sandwich Guide to Navigating Inflation (August 4, 2025)
In this engaging episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy and OG delve into the real-world impacts of inflation through an innovative lens—a sandwich! Joined by guest Len Penzo, an award-winning blogger renowned for his insightful take on personal finance, the trio explores how rising prices of everyday sandwich ingredients mirror broader economic trends. Additionally, the hosts tackle the concerning issue of 401k leakages and offer valuable advice for families grappling with the student loan crisis.
1. Sandwich Inflation Survey with Len Penzo
Understanding Inflation Through Sandwiches
Joe introduces the segment by highlighting Len Penzo's annual Sandwich Survey, which compares the cost of common sandwich ingredients to gauge inflation's effect on household budgets.
[09:00] Joe Saul-Sehy: "The most fun way to look at inflation? Comparing prices of the products we use every day, like sandwich ingredients."
Key Findings: Significant Price Fluctuations
Len presents the survey results, revealing a 5% overall increase in average sandwich prices. However, the breakdown shows notable volatility:
- Lettuce: Up 40% – A head of lettuce now costs $2.49, translating to 25 cents per BLT serving.
- Eggs: In Southern California, prices surged by 35%, making egg salad sandwiches pricier.
- Tuna: Up 30% – Reflecting ongoing supply issues, the cost of albacore tuna has risen markedly.
- Ham & Bacon: Both up 25% and 20%, respectively, affecting sandwiches that feature these meats.
- Bread: Up 20% – The staple base for all sandwiches.
- Mayo: Up 3% due to shrinkflation, with servings per container reduced from 61 to 59.
[14:03] Len Penzo: "The price of lettuce went up 40%, almost. But the price of tomato came down 25%. So it's interesting how this stuff works when you put it all together."
The Cheapest Sandwich: PB&J Takes the Crown
Despite widespread price hikes, the classic Peanut Butter & Jelly (PB&J) sandwich emerges as the most economical option at 44 cents per serving, continuing its dominance as the go-to budget-friendly lunch.
[23:56] Joe Saul-Sehy: "Peanut butter and jelly went down. As we talked about earlier with the ingredients, I didn't know if it would go down enough, Len, that it would bypass the increased cost of the bread, but it did."
Comparative Analysis: Sandwiches vs. Fast Food
Joe emphasizes the cost-effectiveness of homemade sandwiches compared to fast-food alternatives:
[27:26] Joe Saul-Sehy: "The average price of a Big Mac this year in the United States is $6.20 for just a Big Mac. That's without the fries, without the drink. Compare that to a delicious BLT for $4.20. It's a bargain."
2. 401k Leakage: A Growing Concern
Rising Hardship Withdrawals from Retirement Accounts
Transitioning to financial security, Joe discusses a worrying trend highlighted in a Wall Street Journal article about the outflow from 401k accounts, termed as "leakage."
[44:42] Joe Saul-Sehy: "Americans see their 401ks not just as nest eggs, but as rainy day funds. There's more leakage from the $12.2 trillion in these retirement accounts."
Statistics Highlighting the Issue
- Hardship Withdrawals: Increased from 2% pre-pandemic to 4.8% last year.
- Liquidation Rates: Nearly one-third of employees leaving their jobs cash out their 401ks, incurring taxes and penalties.
[46:08] OG: "This doesn't surprise me because as we've gotten data recently from TransUnion, Experian, and Equifax, we've seen the amount of credit card debt after the pandemic ramp back up."
Implications and Solutions
The hosts discuss the reasons behind this trend, such as increased credit card debt and rising living expenses outpacing wage growth. They stress the importance of having a separate emergency fund outside of retirement accounts to prevent such leakages.
[48:09] OG: "If we did this backwards and maybe should have a cash reserve. Or is it that we burned through our cash reserves and now we're on the next layer there?"
Joe underscores the opportunity costs associated with withdrawing from 401ks, illustrating how long-term financial growth is sacrificed for immediate needs.
[58:57] Joe Saul-Sehy: "He gave up almost half a million bucks. He gave up four between nine and $10,000 for a car."
3. Listener Insight: Navigating the Student Loan Crisis
Caller Christine’s Advice for College-Bound Families
In a unique twist, the episode features a caller, Christine, who offers dual perspectives from her experience in higher education and her husband's success post-community college.
[65:07] Christine: "I would recommend a few things. First, complete the FAFSA. Twenty to 30% of college students don't actually do the FAFSA and could get aid if they actually completed it."
Key Recommendations:
- Complete the FAFSA: Essential for accessing financial aid, yet underutilized by students.
- Research Financial Aid on US News: Utilize resources to understand potential aid and average student debt.
- Align College Choices with Career Goals: Ensure that educational investments are strategic and purposeful.
[66:31] Joe Saul-Sehy: "Don't be among the 20 to 30% she mentioned who don't even apply for aid. You could receive more than you think."
4. Practical Takeaways
Top Three Takeaways for Listeners:
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Shop Store Brands to Save: Len highlights that buying store-brand products can save up to 40% without compromising on quality.
[73:53] Doug: "You can save up to 40% by buying the store brand."
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Complete the FAFSA: Essential for unlocking financial aid opportunities for college students.
[73:54] Doug: "If you're applying for college, complete the FAFSA."
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Avoid Complaining About Minor Issues: A humorous reminder to focus on substantial financial strategies rather than trivial complaints.
[73:53] Doug: "Don't complain to Joe's mom about hot dog buns."
5. Conclusion
Joe and OG wrap up the episode by reinforcing the importance of proactive financial planning, whether it's navigating inflation through everyday purchases, safeguarding retirement funds, or making informed decisions about higher education expenses. They encourage listeners to visit Len Penzo’s blog for detailed Sandwich Survey results and to access their comprehensive financial guides available on StackingBenjamins.com.
This episode of The Stacking Benjamins Show underscores the multifaceted nature of personal finance, blending practical advice with relatable analogies to empower listeners in managing their money amidst economic fluctuations.