I’d recommend SoFi banking instead of a credit union as their rates are currently 3.75% on saving and 2.5% on checking when you set up direct deposit. Most checking accounts are 0.01% so their 2.5% is subject to change as they gain market share.

Look into nerdwallet and see how the best ones compare.

Compromise on a more affordable cut with either no dye or a diy dye kit.

529

Studies have shown that higher education; whether it is university, community, or tech/trade, the degree increases gross income. On top of which if they have a 529 he is 3-4x more likely to pursue a degree.

On top of which the new provision for 529’s allows up to 35k to be converted to a roth for retirement should he have funds left over or not pursue a degree.

We can only hope that the cpi drops to the fed’s targeted 2% as quickly as possible since I bonds only preserve capital. Although from my readings it is likely to drop more slowly over the next 1-3 years.

Historically speaking one article I was reading about the fed’s approach during the inflation period of the 70’s to 80’s was they eased off rate hikes too early only to raise them again. No real good option though since the article also said that once the fed actually breaks the economy their hand is forced to ease off the rate hikes.

Consider too that if inflation does drop to 2% in May your money doesn’t lose purchasing power except for the last 3 months of interest if cashed out before 5 years. Right now everything not matching an I bond is losing its purchasing power.

The new 529 rules can still benefit you because up to $35,000 can be converted to a roth account if the 529 has been opened with you as the beneficiary for 15 years. So it is worth looking into.

Depends too what the goal is and if it is for retirement or just to learn how to trade single stocks or learning your greeks to options trade. If that’s the goal then I’d recommend the think or swim app by TD Ameritrade and start with paper trading which is playing around with fake money to learn by trial and error.

The new provision taking place in 2024 allows 529 accounts that have been opened for at least 15 years to convert to roth so just opening the account and funding it minus the last 5 years is well worth it imo in both furthering a degree and doubling as a 35k roth vehicle which depending on your age can be more beneficial the younger you are.

https://www.forbes.com/advisor/student-loans/best-529-plans/#the_best_overall_529_plans_section

You sound like you would be responsible enough to have a cash back credit card that you pay off in full every month.

Try to build up your credit to where you qualify for something like the citi mastercard 2% cash back. Hoard those reward points until cybermonday and buy gift cards at a discount on something you would buy anyways which could be a hit or a miss although you can always use those reward points to cash out or offset your bill.

As for not stressing about spending money just focus of the value buys that cost more but last longer. Besides that start saving for retirement by opening a roth ira and seeing if your employer offers a 401k match.

I bonds.

10k per person per year at the current rate of 6.89% where anything lower is losing to inflation. Thats 20k for 2023 as you likely missed out on having it processed for this year which you would have been able to park 40k in between December and January. They are liquidable after 1 year and you lose the last 3 months interest unless you hold it for 5 years. But depending on when you need the cash and when the consumer price index drops you can hold them for longer.

Just remember that I bonds don’t make you money they are capital preservers. Literally anything making less than an I bond is losing to inflation.

As for a more liquidable account I am a fan of nerdwallet and they rate SoFi banking as one of the best since they offer a checking account at 2.5% when you set up direct deposit plus a savings account at 3.5%. As far as I know SoFi is the only FDIC checking account offering that amount of APY although it is likely so they can attract market share and will not be sustainable long term.

Also look into if your employer offers any after tax contributions with in service distributions to use the mega back door roth to go over cap as well as making use of the new 529 to roth conversion for the tail end of a 20 year plan to fund your roth with up to 35k.