Life Kit – "Money tips no one taught you" (Feb 3, 2026)

Host: Marielle Segarra, NPR
Guests/Experts:

• Amanda Holden (Financial educator, founder of Invested Development)
• Sean Spruce (Financial education consultant)
• Mary Childs (Co-host, NPR’s Planet Money)
• Diego Verdugo (Financial advisor, Principal Financial Group)

Episode Overview

In this practical, approachable episode, host Marielle Segarra confesses that even financial journalists miss some money tricks. She gathers financial experts to share the most useful, lesser-known tips about debt, investing, tax-advantaged accounts, and maximizing savings—focusing on actionable advice listeners might never have learned in school.

Key Discussion Points & Insights

1. Take Your Time Borrowing Money (02:20)

Expert: Sean Spruce

• Shop Around: Don’t rush into loans. Compare options to secure the best terms.
• Borrow Only What You Need: Don’t take the full loan amount just because it's offered.
• Reason: Even a 1% interest rate difference is significant over time.
  • “Just because somebody is willing to lend you $10,000, maybe you only need $5,000. ...Ultimately, you will have to pay it back with interest.” — Sean Spruce (03:20)
• Community Options: Explore nonprofit lenders and community development financial institutions for better deals. (02:55)

2. Capture the Carry on Low-Interest Debt (03:35)

Expert: Mary Childs

• Borrow Cheap, Invest Smart: If your loan rate (e.g., a mortgage at 4.5%) is lower than potential investment returns, consider investing instead of rushing to pay off the loan.
  • “You might earn more than [your mortgage rate] in a high yield savings account... or by investing through your retirement plan or a brokerage account. …That's what's known in the finance world as the carry.” — Marielle Segarra (04:18)
• Only for Low-Interest Debt: Never attempt this with high-interest debt like credit cards.
• Risk Notes: High-yield savings are government insured; markets are not. Know your risk appetite and timeframe. (05:24–06:10)

3. Understand Investment Fees & Returns (07:00)

Expert: Amanda Holden

• Stock Market Returns: Historical average is 10%/year, but use conservative estimates (6–8%) for planning.
• Fees Matter More Than You Think: Even a 1% investment management fee is a much larger slice of your actual gains over decades.
  • “If you're giving up 1% per year in a management fee, you're not giving up one piece of a 100 piece pie. You're giving up one piece of a six piece pie.” — Amanda Holden (00:38, repeated at 09:07)
• Research Fees: Check “expense ratios” before investing; lower fees are almost always better.
  • “You can just type [the fund’s ticker] into Yahoo Finance... what you're going to look for is the expense ratio.” — Amanda Holden (09:32)
• Active vs Passive Funds: Actively managed funds charge higher fees—typically 0.5–1%—but rarely outperform cheaper, passive index funds.
  • “What we see ...is that active managers are not able to do better than the market, and in fact they typically do worse.” — Amanda Holden (10:41)
• Compounding Loss: High fees + ordinary underperformance can leave you with much less than market returns.

4. Don’t Stress Over ‘Perfect’ Retirement Accounts—Just Start (12:25)

Expert: Amanda Holden

• Major Types: Traditional (401k/IRA/403B, etc.) vs Roth (Roth IRA/401k).
• Tax Differences:
  • Traditional: Pre-tax contributions, taxed upon withdrawal—may suit higher earners expecting a lower tax rate in retirement.
  • Roth: Pay taxes up front, no taxes on withdrawal—good if taxes are lower or you expect to earn more later.
• “All retirement accounts are good because all of them allow you to grow your money tax free.” — Amanda Holden (15:43)
• Tax Diversification: Consider splitting between account types since future tax rates are unpredictable.
  • “Maybe the best thing we can do is give ourselves a little bit of tax diversification and do some of both.” — Amanda Holden (16:46)
• Don’t Over-Analyze: Uncertainty shouldn’t be a barrier. The most important thing is getting started.
  • “Don’t let confusion or uncertainty stop you from investing at all.” — Amanda Holden (12:47)

5. HSAs – The Ultimate Tax Advantage (18:14)

Expert: Diego Verdugo

• Triple Tax Advantage: Contributions are tax-free; investments grow tax-free; withdrawals for qualified medical expenses are tax-free.
  • “The HSA account is really the only triple tax advantaged account out there.” — Diego Verdugo (18:42)
• HSA vs FSA: HSAs are not “use it or lose it” and follow you after changing jobs.
• Eligibility: Only available with high-deductible health plans (HDHPs).
• Contribution Limits: $4,400/year for individuals (2026), double for families; employers may also contribute.
• Investment Growth: After a threshold (~$2,000), HSA funds can be invested for higher returns.
• Strategic Use: Especially beneficial for healthy individuals or those with infrequent medical needs.
  • “If the plan is a good fit, think of the triple tax savings.” — Marielle Segarra (20:38)

Memorable Quotes & Humor

• “Hands off my pie.” — Marielle Segarra, on investment fees (00:49)
• “All retirement accounts are good because all of them allow you to grow your money tax free.” — Amanda Holden (15:43)
• “Tax law in the US is like this haunted patchwork doll that has been added to and amended over time. And you can think of retirement accounts as just one cursed limb of the creation.” — Amanda Holden (17:59)
• “Don’t let [tax confusion] be a roadblock to getting started and just pick one...” — Amanda Holden (16:46)
• “We can debate all day about whether Roth or traditional is better, but ...all retirement accounts are good...” — Amanda Holden (15:43)

Important Timestamps

• 00:38: Amanda Holden on the real cost of investment fees
• 02:20: Sean Spruce—Borrow money thoughtfully
• 03:35: Mary Childs on “capturing the carry” strategy
• 07:00: Amanda Holden on stock market averages and hidden fees
• 09:07: Amanda Holden’s ‘pie’ analogy explaining fee impact
• 12:25: Marielle Segarra introduces retirement account tax confusion
• 15:43: Amanda Holden: “All retirement accounts are good...”
• 18:14: Diego Verdugo on HSAs’ triple tax advantage

Recap: The 5 Money Tips Nobody Taught You (20:38)

1. Be thoughtful about borrowing: Shop around and never borrow more than needed.
2. Capture positive carry: Use low-interest debt strategically if you can invest for higher returns.
3. Understand and minimize investment fees: Small fees make a big dent in long-term gains.
4. Retirement accounts aren’t as scary as they seem: Any tax-advantaged account is better than no account—just start investing.
5. HSAs are powerful: If eligible, take advantage for triple tax savings and investment growth.

Tone: Friendly, practical, occasionally self-deprecating, and expert-backed—designed to demystify intimidating financial topics for everyday listeners.

For listeners:
Even if you already know a bit about money, this episode delivers fresh, actionable insights and a reframing of common wisdom, helping you plug overlooked gaps and make smarter choices for the future.