Summary of "Friday Flight - Education Evisceration, BNPL Burgers, & Torched Teslas #963"
Released on March 28, 2025 by iHeartPodcasts
In episode #963 of How to Money, co-hosts Joel and Matt delve into a variety of pressing financial topics, ranging from the potential dismantling of the Department of Education to the evolving landscape of car insurance and consumer spending habits. This comprehensive summary captures the essence of their discussions, enriched with notable quotes and timestamps for reference.
1. Education Evisceration: The Future of the Department of Education
The episode opens with a critical examination of recent political maneuvers concerning the Department of Education. Joel and Matt discuss an executive order purportedly aimed at shutting down the department, though Joel clarifies, “[04:43] Joel: …the President can't eliminate a federal agency, but he can essentially gut it, make it far less effective.”
They explore the implications of transferring student loans to the Small Business Administration and the potential shift to block grants for state education funding. Joel highlights the uncertainties surrounding these changes: “[07:27] Matt: …if student loans do get transferred to the SBA, there could be service issues.”
The hosts express concern over the department's current effectiveness, noting declining test scores despite increased funding. Joel references a Reason magazine headline, “[05:52] Joel: …we spend a lot more at the state and federal level than we do did in decades past,” questioning the return on educational investments.
Key Takeaways:
- Potential transfer of student loans to the SBA could disrupt current repayment systems.
- Increased funding hasn't translated to improved educational outcomes.
- Future discussions will include expert insights on student loan challenges.
2. Car Care Economics: Memberships and Market Dynamics
Joel and Matt transition to discussing personal spending habits, particularly in car maintenance. Matt shares his recent decision to purchase a month-long car wash membership for $22, debating whether it's a frugal or cheap choice. “[02:23] Matt: …I splurged and paid for a month membership at a car wash.”
Joel counters by suggesting the membership may only be necessary during pollen season, emphasizing family involvement in car cleaning as a bonding activity. They critique the car wash industry's strategic pricing strategies designed to push consumers into subscription models. “[03:51] Matt: …they bump the price up pretty close to the cost of the membership, they’re more likely to do it.”
Key Takeaways:
- Subscription models can obscure true cost benefits.
- Seasonal factors influence the necessity of such memberships.
- Family activities can make routine expenses more enjoyable and justifiable.
3. Airline Competition: Frontier vs. Southwest
The conversation shifts to the airline industry, focusing on Frontier’s strategic response to Southwest's policy changes. Matt refers to Frontiers' recent move as a “troll move,” where Frontier announced that checked bags would remain free, challenging Southwest’s introduction of fees. “[10:03] Joel: …if Frontier takes that mantle, they're there to.”
They praise Frontier for potentially attracting Southwest’s customer base by maintaining previous perks, highlighting the use of language that emulates Southwestern's customer-friendly branding. “[10:39] Matt: …the CEO of Frontier even said the line, we've always had heart. So it's a total troll move.”
Key Takeaways:
- Frontier's competitive strategies may realign consumer loyalties.
- Maintaining free checked bags can be a significant differentiator in customer choice.
- Branding language plays a crucial role in customer perception and preference.
4. Buy Now, Pay Later (BNPL) and Food Delivery Services
Joel and Matt critique the burgeoning trend of BNPL options in food delivery services. Discussing DoorDash's partnership with Klarna to split payments, Matt expresses skepticism: “[11:58] Matt: …it's honestly ridiculous that anyone would need to pay for a meal via installments.”
Joel adds that additional fees through delivery services exacerbate overall costs: “[11:35] Joel: …think about all the extra fees, stuff like that. $18 burger fee and tips.”
They argue that such financial products may lead consumers into deeper debt cycles, questioning the necessity of installment payments for everyday purchases. “[12:33] Joel: …this feels dystopian. Man, I love a good dystopian TV show or book.”
Key Takeaways:
- BNPL options may encourage unnecessary debt accumulation.
- Hidden fees in delivery services inflate the true cost of convenience.
- Encouraging mindful spending and meal planning can mitigate financial strain.
5. Food Waste and Financial Impact
The hosts highlight the financial repercussions of food waste, linking it to inflated grocery budgets. Joel points out that excessive purchasing leads to discarded food: “[15:11] Joel: …we never talk about or rarely talk about food waste.”
Matt underscores the cyclical nature of increased dining out and subsequent financial stress: “[16:20] Matt: …we’re collectively eating out more. We're ordering food, you know, that we don't cook on the reg.”
They advocate for better meal planning and leftover management to reduce waste and save money, emphasizing the importance of intentional spending on food.
Key Takeaways:
- Reducing food waste through better planning can significantly impact personal finances.
- Overreliance on dining out contributes to unnecessary expenditure.
- Simple habits like utilizing leftovers can lead to substantial savings.
6. Declining Trust in the World Happiness Report
Joel and Matt dissect a contentious headline from the Free Press claiming the World Happiness Report is a "sham." Joel expresses skepticism about the report’s methodology: “[20:51] Joel: …the methodology… the sample size is tiny and it's one single poorly worded question.”
They discuss the flawed metrics and question the validity of ranking countries' happiness based on such limited criteria. Matt emphasizes the complexity of the money-happiness relationship, stating, “[23:17] Matt: …having more money, it can buy you more freedom… but it's not going to change the core of who you already are.”
Joel reinforces that genuine happiness stems from meaningful relationships and community rather than financial status alone: “[25:14] Joel: …inviting someone over to your house for a meal … connection with others is the secret sauce behind happiness.”
Key Takeaways:
- The validity of global happiness rankings is under scrutiny due to methodological flaws.
- Financial wealth does not directly equate to increased happiness.
- Building and maintaining personal relationships are key drivers of life satisfaction.
7. Rising Car Insurance for Tesla Owners
The episode addresses the increasing insurance costs for Tesla owners, attributing the rise to vandalism and political backlash against Elon Musk. Joel recounts anecdotal experiences of vandalism: “[28:28] Joel: …running into someone and they say you need to get rid of that car.”
Matt explains that such targeted vandalism leads to more insurance claims, prompting higher premiums. “ [27:16] Matt: …EVs are already more expensive to insure because of the high cost of replacing the batteries.”
They discuss the broader implications, including potential market shifts and increased financial burdens on Tesla owners.
Key Takeaways:
- Vandalism and political sentiments are driving up insurance costs for electric vehicle owners.
- Higher insurance premiums may deter potential buyers, affecting the EV market.
- The intersection of politics and consumer behavior can have unintended financial consequences.
8. Imminent Tariffs on Imported Cars
Joel and Matt explore the announcement of 25% tariffs on imported cars set to take effect on April 3rd. They discuss the anticipated impact on vehicle prices, forecasting increases of $6,000 to $12,000 for new cars. “[29:33] Matt: …price hikes on new cars could be in the 6 to 12,000 range if these tariffs come through.”
Joel warns of cascading effects, including rising used car prices and potential layoffs in the auto sector: “[30:37] Matt: …we could see more layoffs or furloughs of employees too in that space.”
They acknowledge the uncertainty surrounding the implementation of these tariffs and the broader economic repercussions they may entail.
Key Takeaways:
- Significant tariffs on imported cars could drastically increase vehicle costs for consumers.
- Secondary effects include higher prices in the used car market and potential job losses in the automotive industry.
- Political instability contributes to economic uncertainty, complicating business planning and consumer decisions.
9. Credit Card Rate Caps: Bipartisan Missteps
The hosts critique bipartisan efforts to cap credit card interest rates at 10%, arguing that such measures could backfire. Matt references a CNBC report stating, “[31:38] CNBC reported that 95% of subprime borrowers wouldn't have access to a credit card anymore.”
Joel highlights the unintended consequences, such as pushing consumers toward predatory lending products: “[32:02] Matt: …they go to payday loans. They go to worse title loans.”
They emphasize the importance of consumer education and alternative financial products, advocating for responsible credit usage over restrictive regulations.
Key Takeaways:
- Interest rate caps may restrict credit access for subprime borrowers, exacerbating financial vulnerability.
- Consumers may turn to worse lending options if traditional credit sources become unavailable.
- Policy measures must consider all ramifications to avoid unintended financial hardships.
10. The Downfall of Joann’s Fabrics and Gift Card Worthlessness
Joel and Matt lament the closure of Joann’s Fabrics and the subsequent devaluation of existing gift cards. Joel states, “[34:22] Matt: …Joann’s just went out of business.”
They caution listeners about the risks associated with gift cards from businesses on the brink of closure, advising purchasing gift cards only when discounts are available. “[35:01] Joel: …with a Joann's gift card, it's completely worthless.”
Key Takeaways:
- The collapse of retail chains like Joann’s Fabrics renders their gift cards useless, causing financial loss to consumers.
- Consumers should be wary of purchasing gift cards unless accompanied by substantial discounts.
- Diversifying gift card purchases to more stable businesses can mitigate financial risks.
Conclusion: Emphasizing Financial Awareness and Community
Throughout the episode, Joel and Matt underscore the importance of financial literacy, mindful spending, and fostering community connections as pillars of financial well-being. They encourage listeners to engage in thoughtful financial planning and to prioritize expenses that enhance personal relationships and overall happiness.
Notable Quotes:
- “[25:51] Joel: …it creates this comparison game. And I think a deeper dive would probably reveal a much smaller disparity.”
- “[32:27] Matt: …this would ultimately be a pretty dismal failure, and it would have more impacts than these politicians realize.”
Final Thoughts: The episode serves as a wake-up call for listeners to critically assess financial decisions, stay informed about policy changes, and prioritize investments in relationships and community for lasting happiness.
This summary provides an in-depth overview of the key topics discussed in episode #963 of How to Money. For a more detailed exploration, listeners are encouraged to tune into the full episode.