In five years the $55,000 would be worth almost nothing. The money would have been spent on nice to have but not really need things, like any windfall of cash. A new car, new shoes, new clothes, new computer and that once in a lifetime vacation.
If they took it out and bought gold or silver or some other so called inflation beating option, then it might retain about 20K of value. I don't think precious metals do well as a hedge against inflation myself, some will disagree.
It was either play money, (to buy toys with), or retirement aid money. For me I am still working my five year plan, but when I sell it will be to aid in retirement and offer a little fun money up.
This is how I see it too. Even if held completely, inflation will diminished purchase power by about 20% in those 5 years, maybe more at the rate of inflation print.
Fun money would be a welcome addition to my life at the moment - all my fun is trying to get there currently :D
You will get there, you just have one more reason than I did, so you need to think about your fun money for yourself, because I know you put yourself last. Got to take care of and plan for smallsteps so she gets a good start on adulthood.
After I got married, I had to stop just willy-nilly spending and think of someone else's needs not just my own. Still a little stuck away for a rainy day is a good idea. The rainy day being the day you just need to get something for yourself.