Sunday, January 21, 2007

Theft or inflation proofing?

On the way to baby swimming this morning, B and I were talking about what to do with the growing pot of cash our son has amassed since he was born nearly 16 months ago. His small fortune is made up of birthday and Christmas gifts from relatives. It is not the product of hours spent grafting in the local sporting goods factory, lest there be any misunderstanding.

Currently, the whole lot sits in his piggy bank, and will soon be worthless (relatively) if inflation continues to rise. We discussed his state provided trust fund as an option, but then remembered it can't be topped up any further. A high interest savings account seemed like a good alternative, but then there's all the administrative headache that goes with setting one up and keeping track of things.

Later, as B was thinking about how she wants the new kitchen to be designed, she hit upon the perfect solution for inflation proofing H's savings.

"We should spend it on the house," she concluded.

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