Friday Flight - Education Evisceration, BNPL Burgers, & Torched Teslas #963

Summary

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.

Transcript

[Matt]

Asking the right questions can greatly impact your future, especially when it comes to your finances.

[Joel]

So if you're looking for a financial advisor you can trust, certified Financial Planner professionals are committed to acting in your best interest. That's why it's got to be a CFP. Find your CFP [e-mail] breaking news t Mobile Network outperforms expectations in all sectors.

[Matt]

Because T Mobile helps keep you connected.

[Joel]

From big cities to your hometown on America's largest 5G network. Switch now keep your phone and T Mobile will pay it off up to $800 per line via prepaid card. Visit your local T Mobile location or learn more@t mobile.com KeepAndSwitch up to 4 lines via virtual prepaid card. Allow 15 days qualified unlock device, credit service port in 90 days device and eligible carrier and timely redemption required card is no cash access and expires in six.

[Matt]

The New Year's here, which is the perfect time to refresh those household essentials and score cash back rewards with Colgate Palmolive. Here is how it works. Buy up to $30 of Colgate Palmolive products, snap a pic of your receipt, upload it to cprewards.com and get up to a $10 digital Visa prepaid card. Again, that's cprewards.com start your year fresh.

[Joel]

By earning cashback rewards with Colgate Palmolive rewards available while supplies last. Limit supply us only January 1, 2025 through March 31, 2025. For full terms, visit cprewards.com welcome to how to Money. I'm Joel.

[Matt]

I am Matt.

[Joel]

Today we're talking education, evisceration, BNPL burgers and torched TEs.

[Matt]

That's right, buddy. This is our Friday flight. We're going to talk about the headlines that we came across this week.

[Joel]

Happy I'm really proud of my alliteration this week. I thought I did an extra special good job.

[Matt]

Education, evisceration in particular. That's a good one. But we should start with that. I wanted to say happy Spring and happy pollen season because where we are, it is insane right now. We both went for runs this morning. Does it impact you like when you're running and the pollen, does it just get funneled into your eyes and you come home and you just.

[Joel]

You struggle? I don't.

[Matt]

I deal a lot more with pollen. Which, hey, quick, frugal or cheap? I splurged and paid for a month membership at a car wash. Oh, so you know the cars get super yellow.

[Joel]

What does that cost?

[Matt]

1520 bucks, $22 for the one that is literally. I basically drive through this parking lot anyway sometimes to skip this light. Kate and I both, you literally just zoom through. Yeah.

[Joel]

I'm like, so you're going like five times a week.

[Matt]

Why not? But what do you think? Frugal or cheap? So normally that location, they charge 11 or 12 bucks per wash. So I figure you go through that thing twice and it pays for itself, man. Especially this time of year.

[Joel]

I dig it. I think this time of year, but cancel the membership because I think most months you don't need it. But in pollen season, you need it more.

[Matt]

I'm more than happy because it builds up and it gets in the crevices, and then that pollen, it turns into dirt, and then it's caked on around where the door seals. You know what I'm talking about? That's where it gets super nasty.

[Joel]

For my family, it's like an adventure, too. Everybody. Everybody loves going. And it's the only time my kids are excited about cleaning. If we go to the car wash. Brainwashed them one, they love it. And then they're like, yeah, let's like, spray it down and clean it out and vacuum it and stuff. So they enjoy that. It's a fun family activity. So I think for that reason, we're more willing to go to the car wash. I will say, though, the one that we typically go to used to be five bucks for a wash, and they bumped it up to nine. And I was like, that's a big, steep price increase. So I'm going a lot less. But now we're getting in the season where maybe I have to do a membership thing, too.

[Matt]

I think it was strategic. I know exactly which one you're talking about, because if you bump the price up pretty close to the cost of the membership, they're more likely to do it. And then folks are thinking, well, I'm not going to pay for. I'm not going to pay $9 for a single wash. But you're like, but I will maybe go ahead and join. And then they've got you on that subscription model. That's what they are after. Put it on the calendar. Of course it's on mine. I'm going to make sure to cancel that junk.

[Joel]

Always put the cancellation date on your calendar so you don't forget, like, two days before it's supposed to renew, right?

[Matt]

Actually, yeah, I got it three days because it says specifically in the fine print something about three days. And so I was like, all right, yeah, shoot. Maybe I'LL just bu it up to four, you know, just. Just to play it safe, man, just in case. All right. Right after we got done recording the Friday flight, last week, the President issued an executive order announcing the shutdown of the Department of Education. And maybe actually that's not correct. Cause he can't shut it down. He can't eliminate a federal agency, but he can essentially gut it, make it far less effective.

[Joel]

I feel like you and I were having to, like, monitor political realities a little more. We're used to, like, can the President do this or not? And is there going to be a legal battle ensuing because of this?

[Matt]

Exactly. So Congress would actually have to join him if you wanted to eliminate that department completely. So for at least for now, the Education Department retains oversight of student loans and some of the other essential programs. But the ultimate goal is to transfer student loans to the Small Business Administration and to eliminate the strings attached to states over how it is that they run education. It's basically the funding would be offered in block grants directly to the states instead of making it conditional. Is this a good thing, though? That's the big question. It's hard to say at this point. One concern is that special education, it could lose out on meaningful necessary funds. But one thing is for sure, education results in a country like ours. It should not be deteriorating the way that we have seen it in the recent years, recent decades.

[Joel]

Those test scores, not good, Matt.

[Matt]

And I'm not sure that the Department of Education, that it's, you know, that's improved education in our country since its founding over the past several decades.

[Joel]

Yeah, I mean, the folks over at Reason magazine had a headline that said Invest in Education, not the Department of Education.

[Matt]

It's a good headline.

[Joel]

And I think that's kind of the heart of what the Trump administration is trying to get at here. Although, again, in a legally dubious way. Their argument, though, at Reason magazine was basically that more federal control hasn't produced better results. Kind of like you're insinuating.

[Matt]

Right.

[Joel]

And in fact, we spend a lot more at the state and federal level than we do did in decades past. So something like $17,000 is spent per student annually. And then at the same time, test scores are just getting worse and worse. We're like 16th in science, we're 34th in math.

[Matt]

Like globally.

[Joel]

Globally, like, it's not great when you think about the richest nation on earth, that should not be the case. And so we were just so much more internationally competitive in 1970s. And then, you know, the lower performing students suffer the Most in this sort of environment, which is tough to watch. And so there's just a lot of details that haven't been fleshed out about this transition, including the lawsuits against the Trump administration administration for attempting to shut down the Education Department via an executive order. I think as far as how to money, the how to money audience is concerned, Matt, if student loans do get transferred to the sba, there could be service issues. There have already just, I mean, the student loan issues are mounting. We're going to bring someone on soon to talk about what's going on with student loans, because it is, it is a kerfuffle, to say the least. And if you have student loans right now, I'm sure you're worried. And many people have gotten massive payment hikes recently, too, that they don't know what to do. They're not sure what to do with that.

[Matt]

Well, there's been a lot of angst about the inability to recertify family income and family size on the Department of Education website. So some folks have gone past their deadline through no fault of their own. So this is some good news here. Late last week, the Education Department issued an order to pause recertification until February of next year. So this is good news for a whole lot of folks and it will keep many from experiencing a shock in the required monthly payment as they regarding the data that goes into the formula that decides what it is that you owe.

[Joel]

Yeah, I think the tough part is it feels like, oh, we want to make this change, but we don't have a plan for what happens in the interim. And we don't really actually know where we're headed either. And so there's just a lot of ambiguity when it comes to the future of student loans. And even people who currently have student loans right now, which is a frustrating place to be. And I'm sure you and I will be talking about this Education Department shutdown and the impacts of that for months to come.

[Matt]

Totally. And I will say a quick note on public funding of public education. We are totally fans of public education. Like all of our kids go to public schools. We don't do private schools.

[Joel]

You can tell we're dummies. We graduated from public schools ourselves.

[Matt]

But how it is that you fund schools, it matters a lot. And I think that's the biggest argument, that the more you're able to decentralize this funding, it's not that we're looking that we're proponents of cutting funding. No. But how you fund the schools, the ability for that funding to follow Individual students. Right. So school choice, backpack funding, where the dollars follow, where the kids are actually going, promotes competition, which. What do we see in free markets when we have competition, it leads to better results, not to mention the access that families have to a higher level of education or a different type of education where there aren't massive barriers like making sure you live in the right zip code, where houses just across that zip code line are significantly more expensive due to the. The school districts and how they're drawn up.

[Joel]

When. If you're, if you're thinking, oh, man, I wish my kid didn't have to take so many, like, tests, mandatory tests in school. Well, that's some. That's often a federal mandate, too, required by the states and school districts to test your kid a certain amount in order to receive the funding that they, that they want. Matt, Frontier did a little clap back to Southwest. Did you see that?

[Matt]

Clap back. I hate that term.

[Joel]

Oh, sorry, I'm using it.

[Matt]

No, I did see the. I saw.

[Joel]

I think this is awesome.

[Matt]

Do you think it's silly and silly and fun, or is it stupid and dumb?

[Joel]

I think it's. I think it's silly and fun and potentially a boon for consumers because basically what they said, you know, we, we talked about this. It's a week on the show.

[Matt]

It's a total Frontier troll move.

[Joel]

Yes, it's a troll move. That's exactly what it is. And so Southwest basically says, hey, we're going to. We're going to start charging for checked bags. And then Frontier says, hey, we're going to go the south, the former Southwest route. And we're not going to charge people to check bags when they fly for Frontier, at least in the coming months. And what they put in the press release, I don't know if you read that far, but they said, hey, this might stay permanent. If you guys like it, let us know. And so I think this is brilliant because this was Southwest calling card.

[Matt]

Yeah.

[Joel]

That was the one thing that made them stand out. And if Frontier. Frontier takes that mantle, they're there to.

[Matt]

Scoop up the scoop up.

[Joel]

Yeah.

[Matt]

What's crazy, in the press release, did you notice the number of times they use the word love? So many.

[Joel]

It's just Southwest model.

[Matt]

That's like literally the Southwest heart. Right. And they literally included.

[Joel]

Amazing.

[Matt]

The. I guess the CEO of Frontiers even said the line, we've always had heart. So it's a total troll move.

[Joel]

But you got to capitalize, like when your competitor makes a misstep, which Southwest really might have done here.

[Matt]

Yeah, that's true.

[Joel]

That is what Frontier is doing. And they could, I think they could really draw customers from, from Southwest to say, yeah, well, actually that was something I prioritized. I'm, I'm going to jump over to Frontier and check out their, check out their airline because I have to pay for my bags for the time being and maybe, just maybe forever.

[Matt]

We'll see if it sticks around. Let's talk about food delivery, because DoorDash announced last week that you can split payments for your $12 fast food order into bite sized amounts via Klarna.

[Joel]

I like the bite sized food.

[Matt]

So not only can you pay in four, which means you can, you know, you can pay like $3 a month over the course of four months, but you can also opt to pay later when you're kicking the can down the road when it's going to be more convenient for you. Joel, you don't have to pay for this now. Pay for it later.

[Joel]

You also said $12 burger, which I think if you go to a restaurant you can get a burger for $12, but if you're going to get delivered, think about all the extra fees, stuff like that. $18 burger fee and tips. Yeah, exactly.

[Matt]

A lot of folks take this option though, and then they pay Klarna fees for the pleasure of waiting even longer to pay. We don't use these apps, but evidently this was already possible on grubhub. I that and the corporate line is total trash, man. They say that we're, we're making convenience even more accessible for millions and it sounds like they're being so kind. This is garbage, man. And it's honestly ridiculous that anyone would need to pay for a meal via installments because if you, I feel like such a traditionalist here, but if you can't afford the full price of the meal, you should be paying for it in cash. You can't afford to pay later either.

[Joel]

Typically you're ordering from a smartphone or a computer, which means that in and.

[Matt]

Of itself tells you something, right? You should be able to.

[Joel]

Do you have the money to afford something? Unless you paid for that in installments too, which, which possibly. But yeah, this is, this feels perpetual cycle. Yeah, it feels like the culmination, but it might not be like, what else can you buy now, pay later? We will find out, I guess in the coming months. But yeah, I don't want to sound unsympathetic, but cook at home or don't, don't order something. If you, if you really can't afford to pay the price for it. And every time we make the reality of paying for something more opaque or we reduce the friction involved, we're more likely to use that service because we like to not feel the pain of the purchase. But ultimately the pain comes later down the road. If you're paying for convenience with money you actually have in your bank account, do your thing. But if you're paying more for convenience with money you don't have, that is another thing. And yeah, it feels dystopian. Man, I love a good dystopian TV show or book.

[Matt]

And not when it starts becoming real life. Yeah, again, it feels so fundamentalist for us to be like, cook more at home. Like we're, I feel like we're becoming the ultimate like trad dads, which I'm not even sure if that's the term, but if it's not, it should be. There's no way it's not a term. Though. I'm gonna mention this. Did you see the article about folks opting to throw their leftovers away? Or they're not even taking their to go boxes home or instantly your doggy bags.

[Joel]

And I imagined your tears as you read that article especially.

[Matt]

I mean the picture in the article too. It's like you get the takeout or not the takeout. You get the to go bag. And then it's like, oh, folks, just kind of leave it there because I don't know, maybe it doesn't seem cool to take the leftover food. I totally hate that. Americans, yes, they're used to these giant portions, which means eating an entire restaurant meal is ill advised. But don't toss out what you can't eat. Take that, take that junk home. Eat those extras for lunch instead. Monopolize those leftovers. We're collectively eating out more. We're ordering food, you know, that we don't cook on the reg. But normalizing that is causing a financial pinch for many. But then on top of that, it's like coals on top of, you know, heaping coals on someone's head here, tossing out the extras and then you go to work and then you end up going out again. It's just, again, it feels like this perpetual cycle of ill conceived poor financial decisions that more Americans are making.

[Joel]

It's funny how much we highlight the reality of inflation at the grocery store and deservedly so. I mean, it's, it's been a problem. And egg prices, for instance, like I get frustrated to paying, you know, $10 essentially for 18 eggs at Costco.

[Matt]

Now the prices are coming Down.

[Joel]

Yeah.

[Matt]

I don't know if you've noticed.

[Joel]

They are. They're starting to come down. Which is it, pulse or pull it? Pullets. Yeah.

[Matt]

Yeah. They're.

[Joel]

I know.

[Matt]

Arriving to egg laying age.

[Joel]

Yeah.

[Matt]

Which is just like we talked about a couple months ago, getting some release. Hang in there, folks.

[Joel]

Don't last for forever. But I. What we never highlight, it seems, are the ways which we're like our own worst enemy when it comes to food inflation. And part of that we talk about buying store brands, stuff like that, but we never talk about or rarely talk about food waste. And like, when you look at the bottom line, that's one of the number one contributors to our food budget is essentially we're buying so much stuff that actually gets tossed in the trash. And if we were just.

[Matt]

I hate food waste.

[Joel]

Yeah. If we were a little more thoughtful about eating our leftovers and if we were a little more. A little better at meal planning so that we bought the appropriate stuff, that we weren't just like buying stuff randomly and then trying to create a meal on the back end, we would find that I think there would be less food waste and our food budgets would remain a little more intact. So part of it's the grubhub orders and the buy now, pay laters and all that kind of stuff. Part of it's literally just buying more than we need and then that stuff getting thrown away and not eating your leftovers is part of that.

[Matt]

I hate it, man. But we've got more to get to here on the Friday flight we're going to. We will get to the torch Tesla's story and what that means for you, even if you don't own a Tesla. That and more right after this.

[Joel]

Are you 100% sure you're doing all the smartest things for your money? To be completely honest, I wasn't. And that's coming from someone who has committed their life to personal finance for nearly two decades.

[Matt]

That's right. So you looked into a company called Domain Money. Their team of expert certified financial planners get to know what matters the most to you. They analyze every aspect of your financial life. They build you a personalized plan with clear steps to reach each one of your goals. They make it incredibly easy to make money. It's like having your own personal cfo, therapist, and money coach all in one.

[Joel]

Yeah. I personally worked with Katie Song. She's an absolute gem. And the best part is that you can work with Katie or one of the expert certified financial planners on her team. I'm always looking out for great resources to recommend to the how to Money community. And I can confidently tell you that Domain Money exceeded my expectations. And for a limited time they're doing free 30 minute strategy sessions. So start today by booking a free strategy session with one of their experts by going to domain money.com howtomoney I am a current client of Domain Money. I received a financial plan as part of the compensation for Domain Money's advertising on the podcast and therefore I have an incentive to promote Domain Money. What does the future hold for business? Ask nine experts and you'll get 10 answers. Will we have another bull market in 2025 or we're going to get a bear market? What about inflation? Will it continue to calm or will higher prices remain sticky? Wouldn't it be cool if someone could invent a crystal ball that would give us some foresight?

[Matt]

Well, until then. Joel Over 41,000 businesses have future proofed their business with NetSuite by Oracle, the number one cloud ERP bringing accounting, financial management, inventory, HR into one fluid platform, one unified business management suite. There's one source of truth giving you the visibility and control you need to make quick decisions. With real time insights and forecasting, you're peering into the future with actionable data. When you're closing the books out in days, not weeks, you are spending less time looking backwards and more time on what is next. Our business is really small, but if we needed netsuite, we would be pumped about the time the cost savings that it provides. Whether your company is earning millions or even hundreds of millions of dollars, NetSuite helps you to respond to immediate challenges and your biggest opportunities.

[Joel]

Speaking of opportunity, download the CFO's guide to AI and machine learning at netsuite.com howtomoney the guide is free to you at netsuite.com howTomoney that's netsuite.com howtomone as every business owner knows, inefficiency will cost you time and money. Too many meetings, for instance, can be burdensome and ineffective. That's why we schedule a quick planning meeting every morning. It helps HTM run smoothly.

[Matt]

It's a morning cuddle.

[Joel]

That's what we call it. Well, creating a trust and will is a very, very slow and time consuming process too, leaving you less time for more important tasks. But trust and will makes creating your will easy and time efficient, meaning you can focus on other important tasks. Plus you can get 10% [e-mail] howtomoney that's right Joel.

[Matt]

Yeah, it's easier than most people think and trust and will's simple step by step process guides you from start to finish, one question at a time. Personally, I felt such a relief, just a weight off of my back once I was able to check that off my to do list a few years ago. It is a great idea to keep your family prepared and protected by managing your will or trust online. Each will or trust that you create is state specific. It's legally valid and customized to your needs. Ensure that your family and loved ones avoid that lengthy, expensive legal proceeding or the state deciding what happens to your assets by going with trust and will.

[Joel]

Uncomplicate the process with trust and will protect what matters most in [e-mail] HowToMoney and get 10% off plus free shipping. That's 10% off and free [e-mail] HowtoMoney all right Matt, we got more money stuff we got to get to including. Let's talk about the 25% auto tariffs in just a second. They're supposedly coming down the pike. We'll get to that in a minute. But now let's get to the ludicrous headline of the week. This one comes from the Free Press and the headline reads the World Happiness Report is a sham. And did you see that come out this week and all the headlines around it?

[Matt]

I did, I did.

[Joel]

And I was I don't really care about this stuff much, but this article was super fascinating because it it was basically saying, hey, this World Happiness Report is complete bunk. And they talked about the methodology behind it. I think it's worth covering here largely because of like the how much news coverage it got. But the the Scandinavian countries, of course, were again at the top of the heap. Finland topped the list for the third year in a row. I am of Norwegian descent, so I like to believe that my people are happier, but I don't know that that's actually true. So the US moved down the list. We now sit at 24th in world happiness, which, yeah, it perpetuates, I think, a stereotype both negatively of us and positively of some of those Scandinavian countries. But this Free Press author dug into the methodology to see what was going on behind the scenes, like why is this happening? And he found that there was essentially zero sophistication to this surve that the sample size is tiny and it's one single poorly worded question is used in an attempt to determine how happy people are in a given country. You should read the piece for full details. We'll link to it in the show.

[Matt]

Notes it does not seem very robust. No, that's what we'll say, to say the least.

[Joel]

But suffice it to say, I think our conceptions of Scandinavia maybe aren't the same as reality. And when we think, oh, they're so much happier than we are, I think it creates this comparison game. And I think a deeper dive would probably reveal a much smaller disparity.

[Matt]

Yeah, I think a more specific assessment would deliver perhaps different results that might not fit our. The preconceived notions that we already hold. So we're kind of like stepping up to the plate for America here for a second is what we're doing in this report. It just gets so much press without having much rigor behind it. That being said, it's probably worth discussing though, the relationship between money and happiness for a second because inhabitants of richer countries, well, they do tend to express higher levels of happiness than folks in poorer countries. However, there are loads of unhappy rich folks and there's also a slew of really happy non wealthy people and vice versa. Growing national wealth. It doesn't necessarily mean that the happiness line is just going to go up and to the right. How wealth actually impacts happiness is really hard to pin down. If you, I think if you want our review in a nutshell, I think having more money, it can buy you more freedom. We're all about talking about financial independence and optionality. It allows you to be more generous as well.

[Joel]

But it's not talked about with Derek recently on the show. How much happiness that can, how much.

[Matt]

Good can you do with that money? But it's not going to change the core of who you already are. It's more of an amplifier of the things that you already believe. So that being said, if you think you're going to be happier when you double your income or when you double your net worth, I think this is highly unlikely. It doesn't mean that these aren't good goals to have, but just don't pursue them to the exclusion of the real things that truly produce happiness. And one key insight from the World Happiness Report that I can totally 100% get behind. Man. Here's a quote. Those who share more meals with others report significantly higher levels of life satisfaction. This is true across ages, genders, countries, cultures and regions which. Oh my gosh, yes. Like what it is that we spend our money on, that's what matters, right? If you continue to spend your money on cheap crap from the Internet that you're. That's gonna end up in the trash. Yeah, no, Wonder you aren't happy that that is not leading to higher levels of happiness. But when you spend your money on things that provide more community. For instance, like, you know, we come down hard on going out to eat. But let's say you're going out to eat with some friends or you're meeting up for drinks or you're even just getting coffee. That's even more affordable. Things that enrich community, joining a social club or going on a vacation together. We were just, Joel, talking last night with a friend of ours who's going on vacation with another couple. So pumped for them. I'm like, you've got to go on this. Don't. They're a little worried about the kids and how they're gonna feel about them leaving. You know, just anxiety, things like that. But like, those are great things to spend money on. And it totally aligns too with the Harvard Happiness Study. 85 years of data points to the fact that the number one factor that leads to higher levels of happiness in these, in these individuals that they've been studying and they've expanded this out to also their families. So it's not just these original guys are the friendships that they're able to have and maintain. So keep that in mind.

[Joel]

Yeah, it could be going out to eat, but it could just be inviting someone over to your house for a meal that's a whole lot cheaper to cook. Yeah. Even if you're cooking for someone else or a hike, a walk. I mean, those kinds of things.

[Matt]

There are free things. Yes.

[Joel]

It can be so basic. But yeah, it's amazing how connection with others. There was even a Vox article I read this week, Matt, about how introverts should force themselves to become extroverts a little more frequently because it's going to increase their happiness levels. Like they're maybe a little anxious about it on the front end, but afterwards they do report higher levels of happiness. I believe it because relational connection, it's the secret sauce behind happiness.

[Matt]

So important.

[Joel]

Not that money doesn't play a role, but. But I think its role is a little overstated. Let's talk about cars for a second, Matt. And car insurance as well. Because analysts in the insurance space, they're warning that insurance costs are about to rise. Obviously that's already happening. But we're not just talking about general inflation related price hikes. That is something that we've seen. Anybody who owns a home or a car has gotten a notice from their insurance company and they're like, eeks, that's expensive. Well, Tesla owners Specifically will be paying more because of the vandalism that's been happening at Tesla dealerships and Tesla cars across the country, just to individual owners. I heard someone, Matt, recently talk, say that they got stopped by someone and they were, like, knocked on the window. He rolled down the window, and they're like, you need to get rid of that car, man. In a threatening way. Which is just kind of difficult to imagine someone you don't know doing that to you. Elon Musk of Horse has not made himself a subject of empathy in this country. Quite the opposite. I think his seeming neglect of his company, too, it's led to a massive decline in market value. Then other electric car manufacturers, like BYD in China, they're announcing amazing innovations. And it just seems like Elon's taking his eye off the ball a little bit here. I think what BYD says they can charge their EVs in five minutes now, which is insane.

[Matt]

Five minutes gets you 250 miles.

[Joel]

Yeah.

[Matt]

That's crazy. You did that in the U.S. yeah, I know, right?

[Joel]

Elon and then Tesla by proxy, they've drawn the ire of Americans who don't like what Doge is doing, and the consequences are piling up. And some of those consequences for Tesla owners in particular could be higher insurance rates.

[Matt]

Yeah, it seems like all the currents are currently against Tesla right now. And also Tesla owners, you know, because it's not just the showrooms, but private owners are having their Tesla cars burned, painted, defaced, and EVs are already more expensive to insure because of the high cost of replacing the batteries. But if your Tesla is also seen as a political symbol, there is a higher likelihood of it being vandalized, which could lead to an insurance claim. Insurance companies are likely to. I mean, we'll see. I guess, like, they are likely to raise premiums higher on Tesla owners specifically to deal with an increase in expensive claims. But as we've seen with the way that insurance markets work, it's something that is passed on to everyone at a certain point. And it's one thing for Elon's actions to have personal, financial and business consequences, but it just sucks to see folks who just went out there and they bought a Model 3 for environmental or economic reasons. They've been forced into the political fray to a certain extent.

[Joel]

I think a lot of those, they're.

[Matt]

Like, I'm not trying to make a statement here, guys. I just want an awesome car.

[Joel]

Right, Exactly. We've talked about the financial realities of buying a Model 3 versus even something like a Toyota Corolla. The Toyota Corolla used to be the cheapest car in the United States essentially to own and operate. And the Model 3 has kind of become that, even though it's got a higher initial sticker price. And so a lot of people are saying, oh, cool, this is going to lower my monthly costs. I'm not paying for gas and it's a good ride. I like driving it. They are kind of fun to drive. They just weren't assuming that it was going to draw political eyeballs because of what's happening in Washington right now. Matt, we should talk too, while we're on the car note about tariffs. And we've talked about tariffs before on the show, but now The President introduced 25% tariffs against imported cars into this country and this is supposed to take effect April 3rd. It's kind of hard to know, I guess in some ways how to talk about tariffs on the show because there were tariffs that came into being that got drawn back quickly or that were announced and that were pulled back before they've been implemented, exceptions made to certain.

[Matt]

Companies or certain sectors.

[Joel]

A lot of tariff whiplash going on because and that's been really hard for businesses to figure out. Well, how do I what do I do when tariffs are being touted but then not necessarily brought to bear? And some estimates are saying that price hikes on new cars could be in the 6 to $12,000 range if these tariffs come through. And as a friend of the show, Kyla Scanlan, put it, she put she said chaos is expensive. And I think we're bearing the fruit of some of that political chaos and how much it's it could cost us. If these tariffs actually do come through, we are going to see not just higher prices on new vehicles, but second and third order effects of those tariffs, which is going to mean more people instead of going to the new vehicle, they're going to the used market. Used car prices are going to go up, too. And then even think about folks working in the auto sector. We could see more layoffs or furloughs of employees too in that space. So we'll see. I don't know if these tariffs are actually going to be implemented, but if they are or if they're just threats.

[Matt]

It'S tough to know. I think it depends on which side of the aisle you fall on too, as to whether or not you think that these are going to be a good thing or not. But I don't know from an economist and we've talked about this. Right. But from Most economists are like, no, this is going to be pretty terrible for the economy. Prices will go up.

[Joel]

Tariffs are. Economists on both sides of the aisle tend to agree they're a terrible thing for consumers.

[Matt]

Yeah. But one thing most politicians, though, are agreeing on right now are rate caps on credit cards. Politicians on both sides of the aisle, they tend to think that curbing credit card interest rates to a maximum of 10%, that that will help their hurting constituents. But they are wrong. Because while this sounds kind and nice, it's going to be bad on so many levels. The unintended consequences, the negative outcomes could be significant, including no credit card access for folks who don't have high credit scores, leaving others to lean on even worse lending products. CNBC reported that 95% of subprime borrowers wouldn't have access to a credit card anymore.

[Joel]

And where does somebody like that go, you know?

[Matt]

Yeah, they go to payday loans. They go to worse title loans. Yeah, like, come on, they don't want that. Credit card companies would likely increase other fees as well. And so this is, again, something that would impact everybody. So you know what sounds like kind of a nice thing to do, would do real damage to the economy. So I'm hoping that this effort at bipartisanship actually fails because, yes, I am not a fan of a 25% credit card. I don't want you paying that. But a 10% rate cap could, surprisingly to many, I think it could actually be worse.

[Joel]

And I think that's the thing that doesn't get discussed very often is the downstream effects of a decision like that. Because it is something that sounds nice coming out of a politician's mouth. Yeah, hey, I've got credit card debt and I'm paying 23% to Visa and MasterCard. This sucks. And it's going to take me forever to pay off this debt.

[Matt]

Because of that, everything has a tertiary effect or secondary effect. Like there are things that was the butterfly effect. Butterfly effect. I've never, I've never watched that movie. But when that all about like one small thing, like it was a long.

[Joel]

Time, the beat of a butterfly, like.

[Matt]

Like the difference in that and just the downstream effects are significant. And I think if they were going to say 10%, political scorekeeping that everyone is engaged in, like, all they want to do are they just want to get the wins in the here and now. And they're not at all looking at our country or at the economy more holistically.

[Joel]

If we're going to say 10%, why not 5%? Why not 2%. Why not be even more generous? I mean, if you cap interest rates, at some point, you create other distortions in the economy. Think about this, too, Matt. There is actually more competition than people might imagine in the credit card game. They can't just raise their interest rates as high as they want. There are other credit card companies that will step up. Think of even credit unions. If you want a lower APR on your credit card, a credit union is often the way to go. You might be able to get an 11 or 12% rate, far below the average market rate. Or think about balance transfer cards. That's another way that people can kind of ditch the extremely high rate, at least for a time, in an effort to pay off their credit card more quickly without paying interest. So there are a lot of options for consumers. And ultimately, what we always say is, like, don't use credit cards. Right. If you can't pay them off on time and in full every month. But this political proposal would. Yeah, it would ultimately be a pretty dismal failure, and it would have more impacts than these politicians realize. By the way, Matt, while we're talking about credit cards, let's talk about gift cards for a second. I do believe I am contractually obligated to throw shade at gift cards at least twice a year.

[Matt]

At least. Okay. I was going to say, if you've already hit your quota, then.

[Joel]

Already. If it's twice a year, it's not even. We're not even through the first holiday, I guarantee.

[Matt]

We talked about gift cards earlier this year, you know, like at the tail end of the holidays. That sounds like something we would do.

[Joel]

Well, I'll just quickly mention your favorite store, joann's Fabrics, just went out of business, which is so funny because I.

[Matt]

Actually went to a Joann's.

[Joel]

I haven't been to one maybe ever.

[Matt]

I have never been there. But I went there and bought some affordable fabric to make those sound panels in the garage.

[Joel]

The acoustic. Yeah, that's where I got this. You didn't buy enough because they're. They're having financial troubles.

[Matt]

I saw that. Going out of business.

[Joel]

Yes. Well, all 800 locations have announced that they're no longer accepting gift cards, even though they're still open. And they're doing going out of business sales, which, by the way, those going out of business sales, they, like, have big signs about how much massive discounts, store liquidation. They're usually not nearly as good as you think they're going to be. But yeah, for anyone. Now, with a Joanne's gift card, it's completely worthless.

[Matt]

That's so crappy.

[Joel]

Which sucks. And this is why my advice typically is with a gift card only buy it if there's a discount attached. Yeah, but think about, man, if you've got, I don't know how much outstanding balance there is on gift cards for Joanne's customers.

[Matt]

It's not a ton.

[Joel]

Yeah, but I hate. I hate seeing this.

[Matt]

Yeah, let's be honest, I probably would have shorted Joanne's. I wouldn't have gone long just given the. I mean, it kind of goes back to the food delivery. Who's out there who's willing to do the hard work of creating something at home making their own. Like people don't even want to cook their own meal, let alone make their own curtains or dress or whatever. Although this guy right here made his own acoustic panels for his garage.

[Joel]

There you go.

[Matt]

Less equity. Oh, before we wrap things up, a quick shout out to Liam G. For referring the how to Money newsletter to some of his friends. Comes out every Tuesday morning and it's packed full with personal finance nuggets of wisdom. Make sure to sign up [e-mail] Newsletter if you are not already subscribed.

[Joel]

And if you are, share it with a friend like Liam did.

[Matt]

We'll give you a nice little shout out. But buddy, that's going to be it for this episode. Everyone have a fantastic weekend. We'll see you back here on Monday. And until next time, best friends out. Best friends out.

[Joel]

Even if you're a money whiz, it can still be helpful to have some professional backup and advice. I talk about personal finance every day of my life and I was still able to get massive value chatting with a CFP from Domain Money. They analyze every aspect of your financial life and help you build a personalized plan with clear steps to reach each one of your goals.

[Matt]

That's right. And for a limited time they're doing free 30 minute strategy sessions. So start today by booking a free strategy session with one of their experts by going to domainmoney.com howtomoney I am.

[Joel]

A current client of Domain Money. I received a financial plan as part of the compensation for Domain Money's advertising on the podcast and therefore I have an incentive to promote Domain Money.

[Matt]

This is Ashley Akadeti from the Ben and Ashley I Almost same as podcast. If you could lose 10.4 pounds in one month, would you try? Well, with Future Health, you can find out if weight loss meds are right for you in just 3 minutes at try fh.com that is try fh.com try fh.com results may vary based on start weight and adherence to diet, exercise and program goals. Database on Independent Study sponsored by Future Health Future Health is not a healthcare services provider. Meds are prescribed at provider's discretion. Joel We've all got different tasks in life that we enjoy doing. For me, that would be closing out the books on our family's personal finances every month. Nerd. But then there are some chores that are more of a pain. And for me, that would be grocery shopping, something I try and avoid if at all possible.

[Joel]

Well, that's where Walmart steps in, because their subscriptions help you to stay stocked on the items you use most, whether that's milk and eggs or kitty litter and cleaning supplies. Find everything you need for your home at Walmart, in stores, online, and in the app.