How to Money Podcast Episode Summary: "Friday Flight - Credit Crunch, MAGA Money, & Gas Gouging #987"
Release Date: May 23, 2025
In Episode #987 of "How to Money," hosts Joel and Matt delve into a variety of pressing financial topics, including America's recent credit rating downgrade, the evolving landscape of youth employment, and the unsettling trend of gas stations imposing additional fees for credit card usage. This comprehensive summary captures the key discussions, insights, and conclusions from the episode, complete with notable quotes and timestamps to guide you through the conversation.
1. Personal Stories: Joel’s Dishwasher Saga [02:34 - 07:14]
Joel and Matt kick off the episode by sharing a personal anecdote about Joel's experience purchasing and installing new dishwashers from Costco. Joel recounts buying four units, selling two on Facebook for $500 each, and ultimately getting a free dishwasher installation through his father's involvement.
- Joel: "So I sold the other two on Facebook pretty quickly for 500 bucks each... I ended up getting paid to get a new dishwasher put in at my house." [04:07]
This light-hearted segment transitions into a discussion about the efficiency and effectiveness of Bosch dishwashers, highlighting improvements in cleaning and drying performance compared to previous models.
2. America's Credit Rating Downgrade [07:14 - 11:51]
The conversation shifts to a macroeconomic issue: the recent downgrade of America's credit rating by a major credit rating agency, now aligning with the other two major agencies.
- Joel: "After Moody's, one of the credit rating agencies joined the other two credit rating agencies and downgraded America's credit standing." [08:00]
Matt provides context, explaining that while the downgrade signals potential challenges, America's overall financial strength remains robust compared to other nations.
- Matt: "America's financial strength is still unparalleled. When we're talking about pure nations, we're number one." [09:33]
They discuss the implications of the downgrade, emphasizing that it reflects long-term fiscal management issues rather than immediate economic threats. The hosts also touch upon the political aspects, noting that past downgrades occurred under different administrations, underscoring that credit ratings are not inherently political.
3. Youth Employment and Avoiding College Debt [11:51 - 15:50]
Joel and Matt explore the rising trend of high school juniors receiving substantial job offers, sometimes exceeding $70,000 without holding college degrees. This phenomenon is attributed to a significant shortage of skilled labor in trades such as welding and airplane mechanics.
- Matt: "Companies are hiring these kids who have shop experience... blue collar work apprenticeships are thriving right now." [12:35]
Joel shares insights from a friend involved in a program training high school students as airplane mechanics, highlighting how these opportunities allow young individuals to earn substantial incomes immediately after high school.
- Joel: "They're going to get paid more than I am when they graduate high school. That's amazing." [15:04]
The hosts advocate for such pathways as viable alternatives to traditional college education, emphasizing the importance of building skills that lead to financial independence without incurring significant student loan debt.
4. Investing in Youth: Roth IRA Initiatives [15:50 - 18:11]
The discussion moves to financial education for young people, with Joel highlighting an initiative by Jonathan Clements of The Humble Dollar. Despite battling terminal lung cancer, Clements launched a program to encourage teens from low-income families to invest in Roth IRAs, pairing education with free matching contributions.
- Joel: "Proceeds from his new book... are going to fund a getting going on savings initiative." [16:06]
Matt appreciates the initiative, noting its potential to instill lifelong saving and investing habits among the youth.
- Matt: "Jonathan is putting his money where his mouth is in this. He's really investing in kids." [17:10]
They emphasize the importance of individual actions in fostering financial literacy and stability for future generations.
5. Gas Gouging: Additional Fees for Credit Card Usage [25:31 - 31:01]
Joel introduces a concerning trend where gas stations are imposing extra charges—up to $1 per gallon—for customers using credit cards. Citing reports from Yahoo Finance and Kiplinger, they highlight that this practice is becoming more widespread, particularly in Florida.
- Joel: "Gas stations are charging customers a dollar more a gallon for using credit cards. That’s messed up." [25:37]
Matt explains that while some gas stations surcharge credit card transactions to offset processing fees, the exorbitant surcharge rates serve as a poor business strategy, potentially driving customers away.
- Matt: "It's a short-sighted cash grab... It doesn't make financial sense long-term." [27:48]
They advise listeners to stay vigilant and consider alternative payment methods or different gas stations to avoid unnecessary expenses.
6. Rising Home Internet Costs [31:01 - 34:22]
The hosts address the significant rise in home internet costs, noting that two-thirds of consumers are paying more than the previous year without receiving improved service.
- Joel: "Two-thirds of folks are paying more for Internet than they were last year... service has not improved." [31:01]
Matt attributes this increase to the lack of competition in many areas, where consumers are often stuck with limited providers.
- Matt: "Home Internet is not a competitive industry... It’s a duopoly in many locations." [32:14]
They offer practical tips for listeners to reduce their bills, such as negotiating with providers, downgrading speeds, or purchasing their own equipment to eliminate rental fees.
7. Subscription Costs: The Rise of Paid Newsletters [34:22 - 35:32]
Joel and Matt discuss the growing trend of paid newsletters, exemplified by platforms like Substack. While acknowledging the value of supporting independent creators, they caution against subscription fatigue.
- Matt: "You just kind of get used to paying a little bit more, a little bit more every single month... it really adds up." [33:51]
Joel emphasizes the importance of evaluating the usefulness of each subscription to avoid overspending on unused or low-value content.
- Joel: "If there's something you haven't read, you're like, man, that's just wasted money." [34:22]
They recommend prioritizing subscriptions that provide significant value and aligning with personal financial goals.
8. Investing Myths: Real Estate and Gold vs. Stocks [35:32 - 38:20]
A Gallup report reveals that many Americans mistakenly believe real estate and gold are superior long-term investments compared to the stock market. Joel and Matt debunk this myth, presenting data that supports stocks as the more reliable wealth-building vehicle over extended periods.
- Joel: "It's a sticky myth... stocks have done well too." [36:31]
Matt points out that while real estate can be lucrative, it requires substantial effort, capital, and market knowledge, making it less accessible for the average investor.
- Matt: "Dollar cost averaging into the market paying low fees and just doing that... is still the best way for the vast majority of folks." [37:00]
They advocate for a disciplined, consistent investment strategy in the stock market as the most effective path to long-term financial growth.
9. The Stealthy Wealth of Small Businesses [38:20 - 41:10]
The episode concludes with a discussion on the "stealthy wealthy"—small to medium-sized business owners who quietly build substantial wealth through stable, reliable enterprises like flooring manufacturing, auto dealerships, and beverage distribution.
- Joel: "It doesn't have to be sexy to make money... those things get neglected so often because they're not snazzy." [39:48]
Matt highlights the potential for acquiring established businesses from retiring baby boomers, presenting it as a viable wealth-building strategy without the need for fame or flashy investments.
- Matt: "How successful those people can be... it's a great way to go." [40:19]
They encourage listeners to consider traditional business ownership as a foundational element of their financial strategy.
10. Listener Shoutout [40:57 - 41:10]
The hosts take a moment to acknowledge a listener, Bill, who has launched his own comics website, showcasing their appreciation for their audience's support.
Conclusion
In this episode of "How to Money," Joel and Matt provide listeners with valuable insights into both personal and macroeconomic financial matters. From understanding the implications of America's credit rating downgrade to debunking common investing myths and exploring alternative career paths for youth, the hosts offer practical advice aimed at empowering listeners to make informed financial decisions. Their engaging discussions underscore the importance of financial literacy, strategic investing, and the continual pursuit of knowledge to navigate the complexities of today's economic landscape.
Notable Quotes:
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Joel: "They don't realize that they've got these financial blind spots like eating out or spending on food delivery." [21:51]
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Matt: "Competition works, man, because prices create important signals to shoppers." [30:09]
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Joel: "If there's something you haven't read, you're like, man, that's just wasted money." [34:22]
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Matt: "Dollar cost averaging into the market paying low fees and just doing that... is still the best way for the vast majority of folks." [37:00]
For more insights and tools to enhance your financial journey, tune into the latest episodes of "How to Money" and visit howtomoney.com.