Friday Flight - Thrifty Trucks, Pricey Parking, & Soaring Secondary Costs #978

Summary

Podcast Summary: How to Money Episode: Friday Flight - Thrifty Trucks, Pricey Parking, & Soaring Secondary Costs #978
Release Date: May 2, 2025
Host: Joel & Matt (iHeartPodcasts)

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Introduction

In episode #978 of How to Money, hosts Joel and Matt delve into a variety of personal finance topics, including the value of second-hand gifts, the critical importance of emergency savings, the emergence of affordable electric trucks, rising parking costs, the pitfalls of Buy Now Pay Later (BNPL) schemes, food waste, the impact of tariffs on consumer prices, and the hidden secondary costs of products. Their engaging conversation provides listeners with actionable insights to navigate everyday financial decisions effectively.

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1. Thrifty Trucks: The Value of Second-Hand Gifts

Discussion Highlights: Joel shares a personal story about giving pre-owned toy trucks as birthday gifts, sparking a conversation on the appropriateness of second-hand presents in different relationships.

Notable Quotes:

• Joel [03:05]: "We keep like a little section of stuff to give away for birthday presents... the most exciting present of the day was a used gift."
• Matt [04:50]: "Used gifts are fine. You just need the presentation to show that it still has value."

Key Points:

• Relationship Matters: Second-hand gifts are more acceptable among close friends and neighbors compared to acquaintances.
• Presentation is Key: Properly presenting used gifts can demonstrate thoughtfulness and value, mitigating perceptions of being "cheap."
• Community Building: Passing down items fosters a sense of community and shared values among children.

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2. Financial Well-Being: The Power of Saving

Discussion Highlights: Joel and Matt discuss a Vanguard study revealing that having at least $3,045 in savings is the strongest predictor of financial well-being, surpassing investment savvy or intelligence.

Notable Quotes:

• Matt [07:09]: "Having $2,000 in your savings account... is actually the strongest predictor of financial well-being."
• Joel [07:24]: "You're living on the financial precipice. That one bill can knock you flat."

Key Points:

• Emergency Fund Importance: A modest savings buffer significantly reduces financial stress and anxiety.
• Updated Savings Target: Adjusted from $2,467 to $3,045 to account for inflation, making it more relevant for today's economy.
• Impact on Mental Health: Financial margins contribute to better mental health and job performance by reducing constant financial worries.

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3. Affordable Electric Trucks: Slate Auto’s New Offering

Discussion Highlights: The hosts express excitement about Slate Auto’s upcoming affordable electric truck, slated to retail under $20,000, positioning it as a game-changer in the EV market.

Notable Quotes:

• Matt [09:59]: "A Jeff Bezos backed startup called Slate Auto is launching a barebones electric truck... under $20,000."
• Joel [14:16]: "There are just simpler, more bare bones ways to accomplish the things that we thought required all the technology."

Key Points:

• Affordability: Slate Auto’s truck offers essential features without the high price tag of traditional EVs, making electric transportation accessible to a broader audience.
• Minimalistic Design: Features include manual controls and no built-in advanced technology, allowing customization and lower costs.
• Environmental and Financial Benefits: Provides an eco-friendly option that doesn't compromise on functionality for budget-conscious consumers.

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4. Pricey Parking: Navigating Rising Airport Costs

Discussion Highlights: Joel highlights the significant increase in airport parking fees, using Hartsfield-Jackson Atlanta as an example, and offers cost-saving alternatives.

Notable Quotes:

• Joel [16:49]: "Airport parking prices specifically are getting really bad... $75 a day at domestic lots and $100 a day at international."
• Matt [18:23]: "You're taking way back. Remember, I still remember when Google tried to buy Groupon for like $8 billion..."

Key Points:

• High Costs of On-Airport Parking: Direct airport parking is prohibitively expensive for many travelers.
• Cost-Effective Alternatives: Off-airport parking options can be as low as $6–$10 per day with shuttling services, providing substantial savings.
• Use of Technology: Booking in advance via platforms like Groupon can further reduce parking expenses.
• New Services: Uber’s van pools offer affordable transportation from airports, enhancing convenience and cost savings.

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5. Soaring Secondary Costs: Hidden Expenses in Products

Discussion Highlights: Joel and Matt discuss the trend of products having hidden or recurring costs, such as subscriptions for features that were once standard.

Notable Quotes:

• Matt [33:16]: "Clay subscription models allow companies to sneak higher costs through the back door."
• Joel [33:54]: "The secondary cost of products matters. It forces a reassessment of long-term financial commitments."

Key Points:

• Subscription Models: Manufacturers are increasingly adopting subscription-based features for products like cars and electronics, increasing the total cost of ownership.
• Hidden Fees: Items may appear cheaper initially but require additional payments for full functionality.
• Consumer Awareness: Understanding and accounting for these secondary costs is crucial for effective budgeting and avoiding unexpected financial burdens.

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6. Buy Now Pay Later (BNPL): Risks and Realities

Discussion Highlights: The hosts explore the growing use of BNPL services for essential expenses like groceries and the associated financial risks.

Notable Quotes:

• Joel [23:35]: "25% of BNPL users are financing groceries... more likely to pay late on these loans."
• Matt [25:11]: "Most people don't understand how these payment plans work or their behavioral impact."

Key Points:

• Increased Usage: A significant number of consumers are using BNPL for essential items, which can lead to financial strain.
• Lack of Understanding: Many users are unaware of the long-term implications and multiple loans they may accumulate.
• Advice: Hosts recommend avoiding BNPL due to its potential to create unnecessary debt and financial instability.

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7. Food Waste: A Hidden Financial Drain

Discussion Highlights: Joel and Matt discuss the financial impact of food waste, revealing that families waste up to 40% of their groceries.

Notable Quotes:

• Matt [26:35]: "Families throw away a third of what they purchase... it's literally money in the trash."
• Joel [28:05]: "BNPL is the wrong answer to the right question. Similarly, food waste is a misguided financial habit."

Key Points:

• Financial Loss: Wasting food equates to significant money loss monthly.
• Solutions: Implementing strategies like food waste audits can help track and reduce unnecessary expenses.
• Behavioral Changes: Encouraging mindful purchasing and consumption habits to minimize waste and improve budget efficiency.

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8. Tariffs and Pricing Transparency: Amazon’s Policy Shift

Discussion Highlights: The conversation touches on Amazon’s attempted transparency regarding tariffs and the broader impact of tariffs on consumer prices.

Notable Quotes:

• Joel [30:38]: "Transparency from Amazon would have been helpful... consumers would see exactly how tariffs affect prices."
• Matt [31:37]: "Tariffs are taxes that affect final pricing and reduce consumer options."

Key Points:

• Price Impact: Tariffs increase the cost of imported goods, directly affecting consumer prices.
• Amazon’s Approach: Although Amazon planned to display tariff costs, the initiative was halted, leaving consumers unaware of the specific price drivers.
• Future Expectations: Increased scrutiny and transparency regarding tariffs are expected as their impact on prices becomes more pronounced.

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9. Travel Costs: Taking Advantage of Lower Airfares

Discussion Highlights: Joel shares his excitement about booking a family trip amidst current lower airfare prices, highlighting strategies to capitalize on travel deals.

Notable Quotes:

• Joel [38:21]: "I just booked some plane tickets last night... using miles and cash."
• Matt [37:47]: "Good for travelers, not good for airline stockholders."

Key Points:

• Current Market Trends: Airfares are lower than they have been in the past 15 years, presenting a prime opportunity for budget-conscious travelers.
• Booking Strategies: Utilizing miles, cashback, and booking during deal periods can maximize savings.
• Economic Impact: Lower demand in business travel and general bookings allows consumers to benefit from better deals.

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Conclusion

In this episode of How to Money, Joel and Matt provide a comprehensive exploration of various financial topics that impact everyday life. From the importance of maintaining an emergency fund and navigating the complexities of BNPL schemes to capitalizing on emerging affordable EVs and mitigating unnecessary expenses like food waste and pricey parking, the hosts offer valuable insights and practical advice. Their engaging dialogue ensures that listeners walk away with actionable strategies to enhance their financial well-being and make informed decisions in a complex economic landscape.

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Notable Quotes Summary:

• Joel [03:05]: "We keep like a little section of stuff to give away for birthday presents... the most exciting present of the day was a used gift."
• Matt [07:09]: "Having $2,000 in your savings account... is actually the strongest predictor of financial well-being."
• Matt [09:59]: "A Jeff Bezos backed startup called Slate Auto is launching a barebones electric truck... under $20,000."
• Joel [16:49]: "Airport parking prices specifically are getting really bad... $75 a day at domestic lots and $100 a day at international."
• Matt [23:35]: "25% of BNPL users are financing groceries... more likely to pay late on these loans."
• Joel [30:38]: "Transparency from Amazon would have been helpful... consumers would see exactly how tariffs affect prices."
• Joel [38:21]: "I just booked some plane tickets last night... using miles and cash."

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This comprehensive summary encapsulates the key discussions, insights, and practical advice shared by Joel and Matt in episode #978 of How to Money, ensuring that both regular listeners and newcomers gain valuable knowledge to enhance their personal financial strategies.

Transcript

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[Matt]

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[Parent]

Alright, sweetie pie, buckle up. Good job.

[Matt]

Or ring the bell on their bike.

[Parent]

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[Joel]

Nice.

[Matt]

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[Parent]

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[Matt]

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[Joel]

Welcome to how to Money. I'm Joel.

[Matt]

Coming in hot.

[Joel]

That's how I roll.

[Matt]

And I am Matt.

[Joel]

Today we're talking thrifty trucks, pricey parking and soaring secondary costs.

[Matt]

Maybe. Should I come in with a whisper? There you go. That's right, listeners. See, they're all like backed away from their speakers and they're in their earbuds.

[Joel]

Can I blow their speakers?

[Matt]

And now I'm trying to draw them.

[Joel]

Back into the if I cause damage to your electronic devices or to your eardrums, please let me know.

[Matt]

How to money shall not be held liable. This is in fact our Friday flight and we're tackle the different personal not just the personal finance headlines, Joel, but all the headlines that are out there. And we're going to sort of massage out the personal finance wisdom that we have discovered within the stories. We're not talking like within the stories.

[Joel]

Foreign policy or anything like that though.

[Matt]

No, we're not.

[Joel]

Not those headlines. No, we don't do that. All right, let's. I want to start off Matt with a quick frugal or cheap because our neighbors across the street just had their firstborn son. Just turned 2. And we had a birthday party with a little bouncy house and all that stuff and it was really fun.

[Matt]

Did it take you back?

[Joel]

Dominated that bouncy house. I felt bad for some of the.

[Matt]

Other 2 year olds there, but got 2 hospital visits. Sorry again. Joel shall not be held liable.

[Joel]

That's right. You can't sue me for that. But my son wanted to give their two year old son a bunch of his old trucks and so.

[Matt]

Ah, that's sweet.

[Joel]

We had like a. We keep like a little section of stuff to give away for birthday presents. Like if we found it and it was like on a great sale or something like that, we'll like pre buy it for a future birthday gift.

[Matt]

Yeah, you're good about that. The birthday. The present closet.

[Joel]

Birthday bin. Yeah.

[Matt]

So the birthday bin. It's like the fun box in kindergarten or at a preschool, right? Exactly. You get to take an item from the birthday bin.

[Joel]

So we gave him like some play DOH thing, right. But that he's gonna be excited about. But apparently the gift he was most excited about was the pre owned cars that my son gave him. He put them in a separate bag and everything like that. And so that was the most exciting present of the day. Was a used gift. How is. I don't know.

[Matt]

Oh, used gifts to friends.

[Joel]

Used gifts.

[Matt]

Okay. Well, it completely depends on the relationship because I.

[Joel]

If you say it's cheap, I'm blaming my son, by the way. It's all his fault.

[Matt]

I know these neighbors and I know y'all are pretty tight with them and like you're living life together and stuff ends up in other people's homes. And because of that it feels more acceptable. I think if this was like a friend from school and you're driving over to their house. If it's that sort of scenario, I think you go with a new present.

[Joel]

Well, you're more acquaintance y. Yeah, exactly.

[Matt]

When you're not as tight. Cause I think here's the deal, I think to younger Matt, and I think younger Matt would have said no, no matter what, no matter who they are, secondhand gifts are fine. They're gonna like it and you kind of force it upon them. But that is the very. That was one of the very definitions when we did the original frugal versus cheap episode of cheapness is if you are imposing your quote unquote frugality upon somebody else. That's when it, in an alchemy like way, becomes cheap. Yeah, I get that. Yeah, yeah, that's. I think I would be more predisposed to buy new with acquaintances like you mentioned.

[Joel]

Yeah, but certainly a good point. I think.

[Matt]

Certainly with my kids, I think used gifts are fine. You just need to. The presentation matters, though, you know, like, if it's, like, if it looks like a used item as opposed to if it's. You doll it up a little bit. Dress it up. Like if it's. If it's still in the ebay box and you haven't even, like, opened the box and you're like, oh, yeah, let's see what's inside there. That feels cheap versus taking the item, putting it in a gift bag or something right to where you are demonstrating that, hey, this thing still has value. And not only does it still have value to it, yes, you've put some thought into it. And it's cool to go secondhand as well. There's like multiple messages that you can kind of weave into that, whether with your own kids, but also with the right neighbor or with the right friends as well.

[Joel]

I think that's a really good point. And the more you know them, the more they know you and your idiosyncrasies, the more they're going to be like, oh, yeah, that's kind of par for the course for them. And guess what turned out to use trucks were his favorite gift anyway.

[Matt]

That's awesome.

[Joel]

Kind of awesome.

[Matt]

Plus, I love the passing down of certain prized possessions amongst kids in a neighborhood. There's something that is essentially getting woven. Like your lives are getting woven together in a kind of messy way, which feels like the heart of any sort of community. Right. Like, you want an element of that, for sure. Joel, let's talk about one of our favorite brokerages, one of our favorite companies out there to invest with, Vanguard. They've got this new study out. Turns out the strongest predictor of financial well being. It's not being a savvy investor. It's not being a really good stock picker. It's also not required to have a Mensa level IQ or anything like that. The Vanguard study found that just having $2,000 in your savings account, that right there is actually the strongest predictor of financial well being. And here on the show, man, we talk about emergency funds pretty often. And this highlights why. It's another underrated reality of not having enough money in your emergency fund. Feeling that, oh, I'm gonna have to actually tap some of those investments. I'm not Gonna let them cook, not gonna let them compound over the year. But in addition to that, the distraction that's created just from living with no margin in your life as well is detrimental to our financial well being. Vanguard found that people with no savings that they spend over six hours a week thinking and worrying about their finances while on the job, as opposed to just one and a half for folks who have cash on hand.

[Joel]

Makes sense. Makes sense because you're living on the financial precipice. That one bill that comes in kind of knocks you flat. And it is amazing how not having cash in the bank just makes you more susceptible, more vulnerable, more stressed out, more stressed.

[Matt]

You're looking at. Then you're logging into your credit card and being like, ooh, how much credit do I have left? Oh, when's that payment due? Okay. Dang it. The interest payment's about to go.

[Joel]

Your brain is working on overdrive. It's. Yeah, it's harmful to a mess to you from a stress standpoint, from an anxiety standpoint. This obviously has an impact on the quality of work you do.

[Matt]

Right.

[Joel]

On your job security as well. If you're the kind of person who is logging into their bank accounts to try to figure this stuff out. If you're sleuthing on your finances six hours a week while you're at work, that's going to have an impact on your performance. It's going to get noticed.

[Matt]

It makes you think back to some of the studies too. Some of the higher level government or military jobs require you to have a certain level of buttoned up ness when it comes to your finances because they want you to be less susceptible to bribery. If some carrots are being dangled in front of you that have a whole lot of dollar signs on them, you're going to be more likely to be, I don't know, a foreign operative.

[Joel]

Yes. It's like the gold bar shoved into your pocket doesn't matter as much like if you've got enough cash on hand and you're like, no, I don't need this, actually. Although gold's worthy.

[Matt]

Except the New Jersey senator who.

[Joel]

That's right. That's right. So he and his wife both found guilty for that.

[Matt]

Yeah, unfortunately. So fortunately. Because we don't need to have that thing going on. That's right. It's unfortunate that they partook that it happened.

[Joel]

Yes. Well, 15% of people in this study with 2,000 bucks said they were stressed about finances versus 51% of folks who were stressed because they didn't have the savings so it's just interesting. It makes complete and total sense that if you have a little bit of money on hand, you are far less stressed out. The value of an emergency fund just goes far beyond having money to pay for what you need if you find yourself in a financial bind. And it's just fascinating too to see. I think some people think, well, I'll be less stressed once I have this massive buffer built up. Once I have this much, my net worth gets to this point. Well, the truth is you're at least eradicating the worst kinds of stresses with just a small pittance in your savings account. Two grand.

[Matt]

That's why we talk about the basic emergency fund. That is step number one, creating some financial margin in your life. And it used to be 2000.

[Joel]

It's not just step number one, it's money gear number.

[Matt]

So I'm sorry, yeah, so off brand.

[Joel]

Use the proprietary language please, sir.

[Matt]

Used to be $2,467. With inflation especially that we've experienced over the past several years, it is now $3,045. 30 45. Remember that. That's how much we want you to have in your savings account.

[Joel]

I like that too, because I like a specific sticky number when. Yeah, man, that is going to. That's 3045. Way to go Vanguard with two grand. But we're going to say 3045 is an even better number. Yes, it gives you a little bit more money, but it's still achievable for the vast majority of people.

[Matt]

So, Joel, something you and I were both really excited about last week, towards the end of the week was the unveiling of that awesome EV, or specifically an electric truck. This is a $20,000 affordable EV and it's not even the supposedly fantastic ones that BYD is creating over there in China, which doesn't even really matter because I doubt we're going to see any of those. But a Jeff Bezos backed startup called Slate Auto is launching a bare bones electric truck that if the current electric vehicle incentives remain, is supposedly gonna cost less than $20,000.

[Joel]

Incredible.

[Matt]

And evidently they're gonna start delivering these things next year. And holy cow, man, I'm so excited. I don't think I've been excited for. The Teslas are cool. Certainly when the Rivian's came out, I was.

[Joel]

They're gorgeous.

[Matt]

Yeah, we're kind of drooling over them, but they're expensive. I'm just like, I don't know how I'm gonna. Why do all EVs have to be luxury vehicles. And that's the difference here. Because these things are incredibly cheap. And the reason being is because they are very minimalistic. They don't have stereos, they don't have power windows, which was my favorite feature. The fact that they don't have power windows.

[Joel]

Gosh, I love those little roller things. I'm totally down to roll my windows up and down.

[Matt]

That's cool, dude. There's no big screen in the center of the dash. It specifically called out manual ac and heat controls like the old school buttons. Just like we are currently rocking in our old vans. Basically the car is a blank slate. So it's called slate auto. But it's, you know, it's kind of like a blank slate.

[Joel]

Yeah.

[Matt]

If you want to spice it up, you can. It's got all these different accessories that you can add on. You can even turn it into a five seater suv, which I think it's.

[Joel]

Like five grand to add that on. I didn't see it. I think it's roughly that. I saw that in one article about it because I was. I was concerned or at least interested. Well, how much is that gonna.

[Matt]

SUV model is gonna cost you? 35, right? Wait, how'd you go from 20 to 35?

[Joel]

Yeah, but apparently it's. It's an extra five grand.

[Matt]

Add on, we can get behind that.

[Joel]

25,000 for a five seater SUV, even.

[Matt]

Just like a little truck. I can so see Kate and I having one of these just to putz around town. And just given the amount of gardening that we do, to be able to load mulch in the back of the truck bed, to be able to put four by eight sheets of plywood back there. Man, this is. I love it.

[Joel]

And it's a smaller truck. When you look at the size. It's not as small as. What are they called? The Japanese or. The Japanese? The K trucks.

[Matt]

K cars.

[Joel]

It's not quite as small as that, which is good for me. I might actually be able to fit in it.

[Matt]

As someone who's 6 foot 6, those are comically small. Whereas this is just like reasonably small. Like 1980s Toyota small. Which. Those are like the coolest trucks anyway. Like the small Toyotas from the 80s.

[Joel]

This is huge, groundbreaking. I think. I'm so glad to see someone launching a car finally at like the lower end of the cost spectrum for people who. And I think there's probably more people than just us two money nerds who are interested in this. Matt.

[Matt]

I kind of think so.

[Joel]

Especially as car costs have been rocketing upwards and people are like, yeah, I'd be down to do the EV thing, but they're really expensive. And so, yeah, I think this is going to reach a lot of people. You and I, we both plunked down a $50 deposit to purchase one. It's refundable. Sign me up not to go with it. Right. And you might be thinking, wait a second, Matt and Joel, they're always talking smack about new cars. Who are these guys who really might buy this new truck when it comes out? Well, this new car would be less than half the price of the average new car and it would be cheaper than the average cost of a used car. So I love it. Not that I would spend that much anyway typically. But like the problem with new cars is that they keep getting bigger, they keep getting fancier power. Everything becomes standard. I just think that the market is crying out for a bare bones creation process. And what that does essentially to the pricing of those automobiles, it allows them to price them this competitively and that no frills segment of the population has been completely ignored in the car buying population. So I really think, Matt, that this has a lot of legs to it. I'm curious to see what one looks like in person. I'm curious to see how this launch goes.

[Matt]

It looks so cool.

[Joel]

But I have a feeling a lot of how to money listeners are like, yeah, I just kind of want something that's going to get me around and be a little comfortable. I don't mind if I have to stick my own Bluetooth speaker in there to listen to my music because guess what, I'm doing that already.

[Matt]

I know that was my recommendation for you last year. When you're just like, oh, it's kind of annoying that I listen to it from my phone. I'm just like, get you a Bluetooth speaker. And it's so cool that that's literally a part of. They're like, want to listen to music.

[Joel]

From the ground up.

[Matt]

Oh my gosh. Of course, like, there are just simpler, more bare bones ways to accomplish the things that we thought required all the technology or all the factory settings to be just the defaults. I mean, we've talked about this recently too. Just how like when did kitchens get so nice?

[Joel]

Yeah.

[Matt]

And we've. I don't want to change the conversation and switch to homes, but like think about homes from the 80s and the 70s and the 60s even versus kitchens now.

[Joel]

What we consider normal is it's, it's so luxury, luxury 15, 20 years ago.

[Matt]

And that's great if you can afford it, but, man, I want to see.

[Joel]

More if you want to afford it sometimes. Sure. It's like, I'd rather spend my money on other things.

[Matt]

Yeah, yeah. Love it. And I hope that we are not the only ones that are going to get excited about this. I really want to see this little company out of Troy, Michigan take off.

[Joel]

Me too.

[Matt]

It says Troy, because that's what it said on the credit card statement.

[Joel]

Oh, really?

[Matt]

It always like says, like the name of the company and specifically where they are.

[Joel]

I was like, thrilled to put 50 bucks down on this one. And yeah, my Rivian R2, it might be.

[Matt]

It got a whole lot less attractive.

[Joel]

A lot less attractive.

[Matt]

I might go ahead and pull that deposit back. Yeah, we'll see. By the way, don't forget about the cost of insurance. Always check with your insurance company before buying a new or a used car because you might be shocked at what it costs to insure, especially EVs these days because of the batteries. But Klippinger, they wrote about the cheapest cars to insure. And man, guess what? The car that both of us own, it's on the top five cheapest cars to insure list.

[Joel]

I celebrated when I saw that. The Subaru, Honda Odyssey.

[Matt]

Yeah, the Honda Odyssey. The Subaru Outback, Nissan Rogue, Ford Escape, Jeep Wrangler. They were the other ones. The most expensive cars to insure were the. Are the, I should say Cadillac Escalade, Dodge charger, Tesla Model 3.

[Joel]

The Challenger. You said Charger.

[Matt]

What? I say Charger. Oh, no, the Challenger. What's the difference between those two? I don't know.

[Joel]

They look similarly.

[Matt]

I think they're not like luxury cars either. I wonder if it's because they're like sports cars. Yeah, but they're not like super high end. So I wonder if it's just because they tend to get in wrecks. I will say when you're driving around and you look in the rear view and somebody's riding your tail, oftentimes it is a. I feel like it is a Challenger or a Charger, but the price gap between these models. Right. So the most expensive and the least expensive can be up to $1,500 a year, which is so much money. And as insurance costs rise, as they become more of a threat to your budget, driving used cars will typically help. Sure. But driving the right used car is going to make a massive difference as well.

[Joel]

Matt, let's talk about parking and how much parking can cost you. These days. Airport parking prices specifically are getting really bad in Hartsfield Jackson in Atlanta is about to start charging $75 a day to park at their domestic lots and $100 a day if you park at the super duper fancy, I guess, international lot. I don't know. I don't know how you get super fancy with parking, but is it called the Lexus lot? I mean, you have to, you have to have Lexus kind of money.

[Matt]

May as well have like the airport sponsorship.

[Joel]

Right. So. So this is all in an effort to raise money to fund new parking lots, because, of course, new parking lots. I hate everything about this. When I saw this story, it made me want to like, stick my pen in my eye. I'm sure a lot of business travelers are just going to pay this because that's what business travelers often do. That's what they do when it comes to high airfares. They just kind of fork over the money. They're not as thoughtful about their businesses money as their own. But even they shouldn't do this because when you look at the numbers, booking at an off airport lot costs a fraction of the price. I'm talking sub$10 a day. And it's even cheaper if you book ahead. Right. So if you, if you sign up for the dates you want at an off airport lot, you're going to pay as low as like six to seven dollars a day, which is insane. A far cry from $100 a day. And they're even. And I know this is a blast from the past map, you can get pretty good deals for airport parking on Groupon. So I. Oh, nice. I don't really ever use Groupon anymore, but I have for airport parking because it saves you even more.

[Matt]

You're taking way back.

[Joel]

Yeah. Remember, I still remember when Google tried to buy groupon for like $8 billion or something, and Groupon was like, now we're good.

[Matt]

I remember they're probably worth a fraction of that now. I rem mob. That was the. That was like the hip Groupon that was cool with like the mustache.

[Joel]

I don't even know if it exists now.

[Matt]

I don't. I don't think it does.

[Joel]

So I just be thoughtful when you're traveling. And parking those airport lots off airport lots. They're actually, actually pretty convenient with parking. And then the shuttling you to the airport, it's. It's pretty easy. It's not like it's a massive inconvenience. And how much money you're going to save is insane. And then one other thing. Uber is offering van pools at more airports these days. They just announced a new van pool for at the Atlanta airport. $10 to get from like middle Midtown down to the airport with your luggage, which seems pretty reasonable to me.

[Matt]

I agree, Joel. We got more to get to. We're going to talk about why everything costs more than you think. Plus other personal finance stories. We'll get to all of that right after this quick break.

[Joel]

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[Matt]

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[Joel]

Navy Federal is excited to celebrate Military Appreciation Month as a special time to recognize our troops and the profound contributions they make. Learn more@navy federal.org Celebrate Navy Federal Credit Union At Navy Federal, the members are the mission. Navy Federal is insured by ncua. Hey there, Joel. Here with my buddy Matt from How To Money. Matt Summers, right around the corner. I know you got that travel bug. What adventures do you have planned?

[Matt]

Oh, man, you are going to love this. We're planning this epic road trip up the east coast with the entire family. Just think Lighthous in Maine, monuments in D.C. plus everything in between.

[Joel]

That's amazing. I'm jealous. But thinking about stowing away in your luggage. But wait a second. How are all six of you going to take this road trip?

[Matt]

Okay, so initially we were thinking about taking an rv, but I found some really awesome Airbnbs along our route. Places with something for everyone. And what I really love is that with Airbnb is we can always start our days with like, a good breakfast at home. Like, it's our home away from home. And I love that routine. I don't know if you've ever tried getting a family of six out the door, let alone trying to find some breakfast in the middle of a city that you're not super familiar with. It's a challenge. Plus, it's a budget killer.

[Joel]

Yeah, that's true. Sounds like chaos, to be honest. And you know, that's actually what makes hosting on Airbnb so special, right? You're giving travelers a chance to really live like a local. They even have the co Host feature which gives you access to a network of high quality local co hosts who can help take care of your home and your guests when you're not there. Find a co [e-mail] host those big money goals. They take a lot of time and effort, but it feels so good to reach that milestone. I still remember saving 20% to put down on our first home. Man, it felt amazing. The only thing more important though than achieving a dream is protecting it. So protect your family by securing their future with life insurance from policygenius. With policygenius you can find life insurance policies that start at just $292 per year for a million dollars of coverage. Some options are 100% online and let you avoid unnecessary medical exams.

[Matt]

Yeah man, I'm so thankful that I got a life insurance policy in place back in the day to take care of the family were something to happen to me. But then personally man, I felt a sigh of relief once we got a policy for Kate were something to happen to her. God forbid. I know that I'm going to need some serious help and assistance. And with policygenius you can compare quotes from America's top insurers side by side for free with no hidden fees. They make it easy and quick so you can get on with life. It's why policygenius is the country's leading insurance marketplace.

[Joel]

Secure your families tomorrow so you have peace of mind today. Head to policygenius.com to get your free life insurance quotes and see how much you could save. That's policygenius.com alright, we're back Matt. Now it's time for the ludicrous headline of the week. This one comes from CNBC and it reads, more Americans are financing groceries with Buy Now Pay later loans and more are paying those bills late. Survey says. Oh man, I hate to talk about Buy Now Pay later again because I think this is something that we like talk smack about pretty regularly. But there just aren't many headlines that could break my heart more than this. The fact that the survey found 25% of buy now Pay later users are using installment loans to pay for groceries these days, like an essential need. And more than four in 10 have paid late on one of these loans in the past year. I feel like Buy Now Pay later it's like a virus that's spreading and more and more people, it's like snuck.

[Matt]

Into the under the guise of, oh, this is gonna make life easier for you.

[Joel]

That's right.

[Matt]

Yeah.

[Joel]

Which sounds nice. Like anytime someone's like, I'm gonna make your life easier.

[Matt]

It's like, why not? Cool.

[Joel]

That sounds great. But it's actually, what do they say, like, when you do the easy thing well, you're going to pay. You're going to have to do the hard thing later. Or versus like doing the hard thing up front and then your life gets a little bit easier down the road. And I think maybe that should be.

[Matt]

Like a quick synopsis of what how to Money is all about.

[Joel]

The hard thing first.

[Matt]

That's like the philosophical approach to how we do things here at how to Money.

[Joel]

Yeah. And if you take the easy approach to paying for stuff, which by now Pay later is the quintessential reality of that, then you're going to have a hard time later. And it's the youngest and most vulnerable among us who seem to be taking the bait. The method really, it seems, seems reasonable on the surface. Sure, I'll pay for this in four installments and I'm not going to be charged any interest. But it's a slippery slope because a quarter of Buy Now Pay later buyers take on a bunch of these loans at once. And the truth is we buy more when the friction is reduced.

[Matt]

And now when you're unorganized as to what you got going on out of your accounts as well, I think that's a big part of it.

[Joel]

That's right. And so it feels like you have to do this in order to be able to afford the things that you want and you're buying more than you actually need because of it. And then when it gets into groceries, I feel like it's. We've, we've completely lost the plot.

[Matt]

I find it interesting as well that more than 60% of buy now Pay later users think that on time payments is, is that that is going to help boost their credit score, which might be true in the future, but it isn't right now, at least for the majority of the different Buy Now Pay later companies out there. It is true with like a firm, Apple Pay later, they report as well.

[Joel]

But there are. But they haven't started putting it into the credit scoring model yet.

[Matt]

There are a whole lot of companies that aren't reporting at all. And so it turns out most folks don't understand how these payment plans work much less than the behavioral impact that they have on their finances. And our advice is to stay away. And like, there's a lot of new companies and anytime there's a new. It's like the wild, wild west when it comes to payment options. And it makes sense too that younger users are jumping on this because they're more willing to experiment and try new things.

[Joel]

But new cool Fintech. Yeah, I'll try it out.

[Matt]

Why not? But as we have more and more options before us, as our attention is more fragmented, that leads to confusion and it leads to a lot of folks feeling overwhelmed and not feeling that they have their arms wrapped around, in this case, their finances.

[Joel]

Yeah.

[Matt]

Another constant reason though for higher food costs, at least on our sort of monthly budgets, is the never changing reality of wasting food. Families, Joel, they throw away a third of what it is that they purchase, which is slightly better than I thought it was half. So like literally I thought it was.

[Joel]

Like I think it's somewhere between it.

[Matt]

Was close to a half of food.

[Joel]

35 ish to 40% depending on who you ask.

[Matt]

I actually, I almost saw this as like a, an improvement based on maybe where things were.

[Joel]

Yeah.

[Matt]

I don't know. At the height of individual spending and the amount of cash that folks surplus cash that folks had in their household.

[Joel]

I've never accounts I've never known a human to love leftovers more than you do. So I know that this disappoints you more than anything else.

[Matt]

100%, man. Obviously it's a great idea to eat out less. It's a good idea to pivot to store brands specifically to shop at Aldi. But dude, if you're not cooking and actually eating the food that you buy before it spoils and goes bad and not eating your leftovers, obviously you're going to pay far more for your food than you should. Similar to talking about the different payment options, I think a lot of it has to come. A lot of it comes down to the fact that we have so many different food options available to us as well. Not just oh, which buy now, pay later, which payment terms am I going to opt for when it comes to affording these groceries? But then when it comes to the actual food that we are purchasing, the like it's so silly to go to the more mainstream or higher end grocery stores and you've got all the options before you as opposed to going to Aldi. And you're right, options are limited. And it makes it makes it so that when you come back and you put all the things in your fridge, I think you are more likely to use some of those ingredients as opposed to over buying, over purchasing because it's so easy to because of buy now, pay later. And then you take all these groceries, you shove them into your fridge and you can't See, half the stuff, because everything's stacked on top of everything. That's why everyone's got the little tub of salad at the back of the fridge that's turned to mush, that you're like, oh, man, I'm gonna have to toss this. Or you're like, what's that smell? And then you realize, oh, it's that there's a lemon down there at the bottom of the produce bin that's turned blue. It's got the blue fuzz on it.

[Joel]

Do they turn blue? Yeah, I guess. Yeah.

[Matt]

But what happens is most people are just like, oh, gross. And then they just grab the whole bag of lemons or oranges, toss it in, and then they end up tossing it into the trash.

[Joel]

I think BNPL hate it. It's basically the wrong answer to the right question. The right question is like, man, my food budget, it's punching me in the face with how do I fix this? And BNPL is positioning itself to be like, look at us, we're over here, we'll help you out. And yet the right answer involves going in the opposite direction, which is to consider what you buy, what you bring in, how much you're spending on groceries, and then using what you have bought. Because that feels so old school. It feels so old school. But man, old school work so much of the time, still, you don't need the newfangled BNPL with the flashy marketing and stuff like that. And what seems like it's going to work out better, ultimately it's going to lead to not knowing where your money is going and spending more money than you should.

[Matt]

It's going to lead to constrained budgets. Have you heard of this thing called a food waste audit before?

[Joel]

Oh, I think I heard about this one.

[Matt]

So, okay, I've never. I've literally never heard of this and came across this link to it in the show notes. But basically, man, I love this so much. You take a sheet of paper, you set it over near the trash can, and every time. So you just pick like a normal week. Every time you take something out of the fridge or I guess out of the pantry as well. And if it's bad or stale and you toss it in the trash, force yourself to write down the item and estimate the cost. And then at the end of the week, you tally up how much money you are wasting, multiply by four. Maybe you've got a monthly understanding of how much you're wasting. Wasting every. Every single month.

[Joel]

I like that.

[Matt]

Hey, rule of 173, take that monthly amount multiply it by 173. Now we're really talking. We're taking it to the next level because that is where you. To not waste that money and instead invest it in the market. That's how much you would have on hand at the end of 10 years.

[Joel]

You're throwing away real money, not just pennies.

[Matt]

It's like literally taking, almost literally, I should say, taking money and just putting it right in the trash.

[Joel]

I mean, I hate that there's a step in between, but that is what you're doing. All right, Matt, let's talk terrorists for a second. And I know you and I, we've, we've talked about it a lot, hoping not to have to talk about it forever into the future. But Amazon announced earlier this week that it's going to. It was going to display the cost of tariffs next to certain goods for sale on the site. I think it was going to be kind of in their Amazon hall section, which was their. Kind of their competitor to Sheehan and Temu. But then what they wanted to highlight was essentially the Trump impact of higher prices that these tariffs were going to cause. And then Jeff Bezos took a call from Donald Trump. It appears that's no longer happening. And they were also like, actually, it was never happening. Even though there were reports that it was happening. It was in the works.

[Matt]

We changed our mind.

[Joel]

Right. And the Wall Street Journal said, actually the public, I'll quote here, the public could have used Amazon's price transparency. Tariffs are taxes, and it's helpful to know how policy choices affect final prices.

[Matt]

That's right.

[Joel]

And I agree. I think that transparency from Amazon would have been helpful and I think it probably would have helped to sour some consumers about tariffs because they would have been like, wait a second, I heard all this stuff talk about tariffs, but how much is it actually costing me? And they'd find out with that as broken out essentially in the pricing. We're going to find out even if it's not broken out, though. But most companies, they don't like tariffs and they want to show their customers at least some of them the exact impact that they have on the bottom line. I think we're going to see more and more of that. And you can't blame them. On top of this, Matt, cheap Chinese goods, they're cheap. No longer. Those two companies I mentioned earlier, Temu, Shein, which again, I've never purchased anything from either of those sites, apparently their prices are going up, doubling the cost of many of the items they sell. One more thing on the terraform specifically.

[Matt]

So that was because of the de minimis loophole, which literally expires today, May 2nd. So it's not to say that Chinese goods, you can still buy cheap Chinese stuff online. You just can't buy it directly from China, where they're shipping it straight from the factories, where they're avoiding all the import duties and whatever it is, because.

[Joel]

That price has got to go up. Right. So on top of that, shipping volumes to US Ports are plummeting. And even with some of the larger tariff delays, the reality of tariffs, it's really only. We're only at the very infancy, starting to begin to feel the impact. So I do think we're going to see higher prices, fewer options if this, the way tariffs are currently constructed, remain, or if potentially they get worse.

[Matt]

Yeah. And don't forget about the secondary costs of everything that we buy as well. That's something else that we often fail to take into account. Right. So let's say you want to buy a tv. Obviously it requires electricity. And then so right there, you see the yellow sticker on there when you buy it, predicting how much it's going to cost you to watch your favorite shows every single year. Well, there's a Wall Street Journal tech writer who highlighted a trend that we've all been subject to, more recurring subscriptions. So instead of paying for that new gadget straight up, getting to use it as you please, you might pay a reduced price. It's like a hidden, hidden price sort of. Right. Or a false price, maybe, I should say. And then you pay an annual fee to unlock its full potential. We talked about at some point, I think it was last year that we talked about the heated seats that aren't digitally unlocked unless you pay the subscription.

[Joel]

Yeah.

[Matt]

Or maybe it was the heated steering wheel as well. Super annoying.

[Joel]

That was BMW, right?

[Matt]

BMW. What'd I say?

[Joel]

Where? Hey, yeah, no, this comes with heated seats, but you got to pay to access them.

[Matt]

Exactly. Luxury brands. Terrace, though, could cause an influx of subscriptions in order to keep the initial price low. Because folks are used to paying a certain amount, it's going to feel painful to pay more up front. So essentially, how can we sneak these higher costs in the back door?

[Joel]

Like, could Apple find a way to make the price of the iPhone?

[Matt]

I guarantee they're thinking about it half.

[Joel]

As much or something in order to. In order to reduce what they pay in tariffs and create like a subscription model where you pay them monthly instead.

[Matt]

It's all about the subscription, man. Yeah, yeah, yeah.

[Joel]

Because you don't pay tariffs on subscriptions.

[Matt]

Keep that in mind. Keep in mind the additional cost before you click something to buy it. Think about the secondary costs.

[Joel]

One, just one basic thing that, like, some of my friends have the Whoop fitness bands. Right. You and I, we've got the Garmin watches.

[Matt]

Yeah.

[Joel]

And it wasn't just because the initial cost was lower, although it was. But the Whoop band comes with a monthly subscription fee to access the data that you're racking up.

[Matt]

And a lot of folks pay for it for a year in advance in order to get the best deal. Right. I don't even know how much it costs, but it's not words.

[Joel]

But I know that I pay $0 taxes. All the data from the running that I'm doing, so that factors in. Right? Hey, how much? Not just like, what's the initial cost, what's the outlay right now? But think about what are the costs down the road that I'm going to incur by buying this thing. It really matters. And I think the more we can think about the things we buy in that way, it's going to at least, like, force our hand to think about our purchases differently. And we might find ourselves buying less or at least pivoting to buy other items that are going to have lower secondary costs.

[Matt]

That's true. Another way to help us decide what to buy, what not to buy, in an era of rising prices is to consider prices in terms of time. So basically, cpi, it's not a great metric because let's say we were talking about TVs earlier, the TV you bought back in the 80s, it does not compare to the one that you can buy today. It's much better now and it costs a whole lot less. And superabundance is about how much richer we've become thanks to global competition. Free good book trade. Yeah. The reality that it just takes us less time working in order to earn incomes, to pay for basics like food and energy, which is a good thing. This is something that we love. It shows that we can afford more of everything. Now. This is like the heart of progress.

[Joel]

Sure.

[Matt]

But it makes me think that we should all figure out our hourly rate. And this is another topic we discussed way back in the day is episode 99. And I think going through that exercise, it can create this subtle mental shift because the next time you're thinking about buying something, I think you might be more keen to think about how long you would have to work in order to afford that item. Which could be a better way of thinking about it, you know, I think that one reframe could prevent some ill advised purchases and just to cause you to again second guess, reframe things, put it in a different light to where you're not just thinking about how it's gonna make you feel in the moment, but what you're thinking about is what about future me? Or what are the alternatives? Or how much is this actually gonna cost me a little bit further down the road? Not just what I have to pay.

[Joel]

Up front right now, 180 bucks feels really different than saying that's gonna take me six hours of work. Especially if you don't like your job, that will hopefully make you think twice about whether or not you really wanna buy the thing. Because if it means you gotta, you gotta go, you know, put in some additional hours in order to, and you don't always have to put in additional hours, but you're reframing it in terms of thinking about how much my time is involved in getting this item. And I just think that's a better way to think about it. And that also is gonna make you less likely to buy things you don't need. Well, at least it'll take you fewer hours of work to buy that next plane ticket. Matt, we just had Scott, Kai's our buddy, on to talk about cheap travel. Who knows more about that than he does. But as he predicted, when the economy softens, travel is an easy item to reduce spending on. You're like, hey, I don't have as much money rolling in or prices are higher. That's just one of the first places where people naturally say, I guess I'm not going to buy that plane ticket and go to Connecticut instead.

[Matt]

I'll just drive.

[Joel]

Right. Or I'm not going to take the.

[Matt]

Trip this year or we're staying home.

[Joel]

Yes. And so as demand for travel softens, the deals get better. And we're in the midst of this time where deals are getting better. The cost of airfare is actually lower than it was not just like last year or two years ago, but it's lower than it was 15 years ago. So that's like a silver lining to all the inflation we've seen recently. It's like, well, there are certain parts of the market, certain segments that we're not experiencing that. And airfare is a specific one.

[Matt]

Good for travelers, not good for airline stockholders.

[Joel]

That is for sure. Because all the major airlines, they're, they're kind of worried about demand in the coming months. They're, they're pulling financial outlooks that they typically offer. Business travel is seeing a real demand pullback too, which is one of those things that they can typically count on. Even if consumers like you and me pull back on a vacation, they're like, well, business travelers are going to. They're still going to be at it. Well, sorry Delta and United, but congrats to everybody who's listening. Who's like a deal hungry traveler with money to spare. Now is a better time. I literally just booked some plane tickets last night.

[Matt]

Where you going?

[Joel]

Well, this is a family trip we're taking in Hawaii this summer, so I'm very excited about that.

[Matt]

Oh, you booked the final leg.

[Joel]

Finally pulled the trigger. Yes. Used some miles on some. Some of the plane tickets and used cash on the rest.

[Matt]

Nice. I know you were getting nervous because you got a really good deal on one leg and you're just still camped out waiting, trying to. Nice. All right, glad you got a good deal.

[Joel]

So I hope everyone else out there takes advantage of this. Like, hey, when. When prices on airfare are sinking and when these the airlines are offering more deals out there, if you've got the spare cash to take advantage, might be a better time to take that trip.

[Matt]

Very nice. Well, that's gonna be it for this episode of your favorite podcast, how to Money. We hope everyone has a fantastic weekend. We'll see you back here on Monday.

[Joel]

I thought we were their fourth favorite podcast.

[Matt]

Favorite podcast and until next time.

[Joel]

That's really nice of them. Best friends out.

[Matt]

Best friends.

[Joel]

Foreign.

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[Matt]

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[Joel]

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[Matt]

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