How to Money Podcast Summary Episode: Friday Flight – ‘Just In Case’ Planning, Consumer Caste System, & Credit Scores Crashing #1041

Date: September 26, 2025
Hosts: Joel & Matt
Podcast: How to Money (iHeartPodcasts)

Overview

This "Friday Flight" episode is a rapid-fire roundup of current personal finance headlines and trends impacting everyday people. Joel and Matt discuss smart spending habits, the effects of tariffs and economic uncertainty, investment fads, surging prices, the so-called “consumer caste system,” changes in credit scores, and more. The vibe is conversational, empathetic, and focused on practical tips for thriving amid economic turbulence.

Key Discussion Points & Insights

1. Smart Spending: The 24-Hour Rule

Timestamps: [03:03]–[06:29]

• Joel recounts how his daughter used the "24-hour rule" before making a $25 purchase at a vintage shop.
• This cool-down period is recommended to avoid impulse buys and reduce regret.
• Matt: “Yeah, I totally agree. More of us should implement that, like a cool down period where we just stay. Step away from the item. Rethink our life choices.” [06:29]
• Practical Takeaway: Sleep on non-essential purchases to spend more mindfully.

2. Tariffs & Everyday Prices (Coffee, Shoes, Online Shopping)

Timestamps: [06:40]–[12:35]

• New and increasing tariffs—especially a 50% tariff on Brazilian coffee—are causing price spikes (20%+ for some beans and other goods).
• US companies are running out of pre-tariff inventory, so higher prices are likely to be passed on to consumers soon.
• Sneaky fees: Unexpected tariffs and bills are showing up on international online orders.
• Small businesses and consumers face more uncertainty—some overseas retailers are even suspending US shipping.
• Joel: “Be careful buying internationally until more clarity comes on these tariffs.” [11:14]
• Matt: “At some point, this is going to lead to the economy grinding to a halt as folks are kind of like, what is about to happen, because there is no certainty.” [12:37]

3. “Just In Case” Financial Planning Amid Uncertainty

Timestamps: [12:37]–[16:23]

• With economic volatility and unpredictability, creating a backup ("just in case") financial plan is wise.
• Key steps: Monitor expenses, check insurance, and create a bare-bones budget.
• If you're invested, consider your reaction to market drops and your time horizon.
• Matt: “A just in case financial plan is something that you hope you don’t have to use, but it is a smart exercise and it’s certainly great to have when the need arises.” [13:56]
• Real-life analogy: Being physically prepared with first aid in the wilderness or being mentally prepared for emergencies in public spaces translates to financial preparedness.

4. Robinhood’s Startup Fund & Caution Against Chasing Fads

Timestamps: [16:40]–[18:16]

• Robinhood is launching a new venture fund for retail investors to invest in startups.
• Joel: “Morningstar… said this fund could spell disaster for investors.”
• High risks, high fees, and lack of experience make these funds hazardous for most.
• Emphasis on sticking to index funds: “The candy version of what you should be including in your diet” vs. “meat and potatoes and veggies.” [18:16]

5. Why “Trading Like Congress” Doesn’t Work

Timestamps: [18:16]–[20:53]

• Jason Zweig (WSJ) noted that at market extremes, “buy and hold” gets questioned.
• Politicians’ trades often outperform, leading to FOMO, but most people should avoid emulating this.
• Matt: “Members of Congress should be forced to… either put their portfolio under, like, lock and key while they are in Congress… or you are just invested in the overall American stock market.” [19:18]
• Efforts to curb Congressional trading have gone nowhere.

6. Quarterly Earnings Reports: Transparency vs. Overkill

Timestamps: [20:53]–[23:43]

• Ongoing debate over moving from quarterly to semiannual public company earnings reports.
• Quarterly reporting may prompt short-term thinking and risky moves; less frequent reporting could lower administrative costs.
• For index investors, this change is unlikely to matter much.

7. Ludicrous Headline: “Consumer Caste System”

Timestamps: [26:49]–[30:36]

• Business Insider’s claim of an “American consumer caste system” triggered heated rebuttal.
• Citing things like early Costco hours for executive members or ad-free streaming, the hosts challenge the premise:
  • Joel: “In a caste system… you were bound for life. That’s not the case in American society. You and I, we can choose to pay for ad removal on our streaming or… for the Executive membership—or vice versa.” [28:28]
  • Matt: “This is why America is so amazing. We have the freedom… to make the kind of choices we want to make.” [29:10]

8. Dynamic Pricing—Casinos, Water Bottles, and when “Surge” is a Cash Grab

Timestamps: [30:41]–[33:10]

• Surge/dynamic pricing has expanded beyond rideshares and airlines, now affecting casinos and even fast food.
• The hosts note it’s acceptable for limited-supply goods (flights, rides), but manipulative for unlimited items like bottled water.
• Dynamic pricing backlash: Wendy’s scrapped plans after consumer revolt.
• Joel: “The best thing you can do as a consumer is just to walk away from stupid prices.” [33:13]

9. Noble Mobile: Phone Plan Innovation or Just a Gimmick?

Timestamps: [33:49]–[35:17]

• Andrew Yang’s Noble Mobile offers $50/mo for 20GB, paying users $1/GB unused.
• Interesting incentive, but still pricier than direct competitors if you’re a light user.

10. Credit Scores: Why They’re Dropping and System Critique

Timestamps: [35:22]–[42:57]

• The average US credit score recently fell slightly after years of steady growth.
• Student loan payment resumption plays a big role.
• Gen Z has been hit hardest, with 14% seeing a 50+ point decline.
• Matt: “That 720 isn’t the 720 of yesteryear.” [35:52]
• Be wary of quick-fix credit solutions.
• Discussion of fairer credit models: Considering rent, shopping, and even educational history, although privacy concerns persist.
• Joel: “The more you understand how [the credit system] works, you know that paying your bills on time is crucial, that having a low credit utilization rate is one of those big things that impacts your score in a massive way.” [41:59]

Notable Quotes & Memorable Moments

• Joel, on tariffs: “I just hope even if tariff policy remains somewhat in place, that we just kind of settle on something and it’s not a whack a mole sort of thing anymore.” [11:14]
• Matt, on financial preparation: “It’s like having that first aid kit. You don’t get it thinking, ‘I can’t wait to use this.’ You get it thinking, ‘I am an adult and I want to be prepared.’” [14:51]
• On the “caste system” idea:
  • Joel: “Different tiers of service are a benefit to consumers, allowing more choice. It is not some sort of dastardly sorting mechanism.” [28:28]
  • Matt: “We also need more Chris Farley references in our podcast.” [30:36]
• Matt, on walking away: “Vote with your dollars, vote with your feet.” [33:21]
• On credit models: “Understanding the system is crucial, and there’s just a huge chunk of Americans who are a part of it, but they don’t know how it works.” [41:59]

Important Segment Timestamps

• Smart spending lesson: [03:03]–[06:29]
• Tariffs’ consumer impact: [06:40]–[12:35]
• Just-in-case planning: [12:37]–[16:23]
• Robinhood’s new fund: [16:40]–[18:16]
• Congressional investing & FOMO: [18:16]–[20:53]
• Quarterly reports debate: [20:53]–[23:43]
• Consumer “caste system”: [26:49]–[30:36]
• Dynamic pricing critiques: [30:41]–[33:10]
• Noble Mobile pitch: [33:49]–[35:17]
• Credit scores dropping & reform: [35:22]–[42:57]

Final Thoughts

This episode is packed with timely, relatable commentary tailored for everyday listeners. Joel and Matt remind us that being financially proactive and adaptable—not reactive to hype, headlines, or political gridlock—is the best path forward. From watching out for rising prices and sneaky fees to understanding the fundamentals of credit, their practical guidance cuts through the noise without losing their trademark friendly banter.