NerdWallet’s Smart Money Podcast

Episode Title: Outsmart Black Friday Hype and Tackle Credit Card Debt with a Budget Reset
Date: November 24, 2025
Hosts: Elizabeth Ayola, Amanda Barroso, Shawna
Special Guest: Shelby (Listener)

Episode Overview

This episode tackles two timely themes: 1) How to approach Black Friday deals with a smart, skeptical eye, and 2) A live budget “rehab” session with listener Shelby using the 50/30/20 rule—focused on practical debt payoff and savings tactics.
Expect actionable advice, clear explanations, and an authentic, supportive tone as NerdWallet’s hosts and experts break down strategies to avoid holiday overspending, leverage budgeting frameworks, and tackle credit card debt.

Black Friday: Separating Hype from Helpful (00:40–13:44)

How Black Friday Has Changed

• The hosts reminisce about old-school Black Friday events: long lines, doorbusters, and “wild” in-person shopping sprees.
• Elizabeth: “Black Friday is here again. And it's another reminder that I'm getting older because I've lived through 30 something of them.” (01:36)
• Amanda shares: Sales now stretch for weeks, with retailers launching “early Black Friday” deals as early as October.

Are the Discounts Actually Worth It? (03:03–04:07)

• Amanda: “To me, a deal isn’t saving $3. Come on. I’m gonna need retailers to do a little bit better than that for Black Friday.” (03:51)
• Biggest savings are often found on:
  • Tech/electronics
  • Kids’ toys (esp. popular items from Amazon/Target/Walmart)
  • Kitchen appliances and beauty items
  • Gift cards and streaming service promos

Savvy Shopping and Price Tracking (05:06–06:40)

• Tip: Put big-ticket items in online carts early, track their prices over time, and avoid impulse buying.
• Amanda: “We’ve seen items sometimes dip to their lowest prices before a big sale even happens... The Black Friday shopping landscape has changed a lot.” (05:34–06:37)
• The rise of dynamic pricing—retailers change prices by the hour or day to compete.

Trends & Budgeting for Black Friday (06:40–09:59)

• New Trend: Extended “shopping season” means sales start in October.
• Members-only deals (Prime, Target RedCard, Walmart+, etc.)—stack them for extra savings.
• More shoppers are mixing thrifted and new items or switching to store brands.
• Budgeting:
  • Amanda: Creates a “sinking fund” in a high-yield savings account for holiday gifts, primarily using monthly interest earned.
  • Elizabeth: Chooses not to budget for Black Friday, emphasizing needs over wants.

Mindful Gift Spending (10:01–13:44)

• Discussion on payment methods: cash, credit cards, and increasing popularity of Buy Now, Pay Later (BNPL).
• Elizabeth: “While I understand that Buy Now, Pay Later has its place, I don't think it should be used to buy gifts, as that's a want and not a need.”
• Amanda warns: FICO is beginning to factor BNPL into credit scores; missed payments can impact your score.
• Tips for safe BNPL use:
  • Limit to one big-ticket item
  • Mark payment dates in your calendar
  • Stay organized; don’t lose track
• Thrifting as a gifting alternative:
  • Amanda saved $370 by thrifting: “As of today I’ve scored $562 worth of stuff for about $191.” (13:20)
  • Hosts encourage blending new/thrifted gifts and focusing on meaningful experiences over material things.

Budget Rehab: Listener “Shelby” Gets Nerdy Advice (16:22–38:23)

Meet Shelby & Situation Overview (16:49–18:28)

• Shelby is a nonprofit worker in Austin, TX; recently bought a condo—wiped out savings and drove up credit card debt due to new home expenses.
• Shelby: “A work in progress.” (17:27)
• Juggling rebuilding savings and aggressive debt reduction with extra part-time jobs (babysitting/nannying).

Shelby’s Finances—The Breakdown

Income & Basics (20:02–22:31)

• After-tax monthly income: ~$5,570 (includes part-time income).

• Housing: $2,400 (mortgage + HOA/water/home insurance).

• No car payment (paid off in January); car/home insurance: $165/mo.

• Groceries: ~$300/mo (keeps costs low via work-provided meals).

  “I find myself eating more at work just from things that are brought to the break room than actually having to eat my food that I brought.” —Shelby (21:32)

• Note:

  • Housing eats up 44% of take-home pay, above the standard 30% recommendation, but manageable per Shelby.
  • Anticipates mortgage rate increasing due to a 3-2-1 buydown structure; planning to possibly refinance.

The 50/30/20 Budget Context (24:26)

• Elizabeth explains: “50% usually goes to your needs, 30% to wants, and 20% to debt and savings.”

Saving & Investment Accounts (24:40–27:39)

• High-yield savings account (emergency fund: aiming for 3 months’ expenses or ~$9-10k; currently at 25% of goal).
• 401(k) (6% salary contribution; employer matches 3%)
• IRA (just started; $50/paycheck)
• HSA ($100/paycheck)
• Additional bank savings accounts for smaller and “play” money.

“...all of the supplemental work that I'm doing with the nannying, hopefully that's not forever. So the more I do that, the quicker I can achieve my goals and the sooner I can hopefully just have one job.” —Shelby (26:58)

• Current “savings score”: 11.7% (below the ideal 20%).

Credit Card Debt—The Big Stressor (27:39–34:18)

• Four cards with balances (~$8,600 total):

  • Auto repair card: $1,000 at 0% for 6 months
  • New general card: $1,600 at 3.99% (promotional)
  • Southwest travel card: ~$4,000 at 20–24%
  • Chase Freedom: ~$2,000 at ~27%

• Credit score: 759

  “I hate when people pay egregious amounts of interest and anything north of 20% is going to be in that category.” —Shawna (29:34)

• Using “avalanche” debt payoff method: focus on highest interest rate cards first.

• Shawna's tip: Consider balance transfer cards to get 0% on transfers for 18–24 months, particularly to shift high-interest balances.

Wants & Lifestyle Spending (31:42–33:23)

• “Wants” (mainly experiences with friends) = 28% of monthly income, right on target.
• All friends in similar financial circumstances; birthdays are an exception to the budget.

  “It’s like calories don’t count on your birthday. Neither does the budget.” —Shelby (32:14)

• Hosts suggest considering a temporary cutback on wants to accelerate debt payoff—unless a good balance transfer option can be found.
• Shelby is already optimizing and supplementing with extra income.

Final Troubleshooting & Listener Q&A (34:18–38:08)

• Shelby asks if it’s wise to pause or minimize savings to focus solely on debt.

  • Elizabeth: Not a terrible idea if you have high-interest debt, but always get your 401(k) match and maintain at least a $1,000 emergency fund.
  • Shawna: Avoid pulling back entirely—savings are crucial to prevent future debt!

• Balance transfer deep dive: You can often combine multiple balances onto a single card.

• Which card to transfer? Generally, transfer the highest balance, even if the rate is slightly lower, for biggest interest savings.

  “I want your money to go towards more fun things than paying interest to a bank. And transferring your balance might be the best way to do that.” —Shawna (31:17)

Notable Quotes & Memorable Moments

• “The holidays aren’t worth going into debt over. And anyone who is in your circle who loves and cares about you will probably tell you the same thing.” —Amanda Barroso (10:29)
• “I spoil [my son] more with experiences, to be honest.” —Elizabeth Ayola (09:51)
• “I've scored $562 worth of stuff for about $191. That's a good savings.” —Amanda Barroso (13:20)
• “A budget is always a work in progress. No matter how great it is, it can always be refined and updated.” —Elizabeth Ayola (17:32)
• “It seems like you got into this debt because of household expenses. You weren't racking up vacations on them, correct?” —Shawna (33:40)

Key Takeaways

Outsmarting Black Friday

• Don’t fall for superficial markdowns—compare actual prices and prioritize real needs.
• Start “window shopping” early and track big-ticket prices.
• Members-only deals and extended sales periods can help you stack savings.
• Don’t go into debt for holiday gifts; try mixing new and thrifted items.
• Be wary of Buy Now, Pay Later—missed payments will start affecting credit scores.

Tackling Debt and Building a Sustainable Budget

• Use the avalanche method, or consider 0% balance transfer cards to avoid high interest.
• Even if you need to pause aggressive savings temporarily, always:
  • Get your 401(k) match
  • Maintain a starter emergency fund
• Supplementing income (side hustles) is a valid strategy if expenses can’t be cut further.
• Enjoy your money—experiences and milestones matter, but keep the big picture in mind.

Timestamps for Key Segments

• 00:40 – 04:07: How Black Friday and retailer behavior have changed
• 05:06 – 06:40: Why and how to track prices for major purchases
• 06:40 – 09:59: Budgeting for Black Friday and family strategies
• 10:01 – 13:44: Buy Now, Pay Later and alternative gift-giving
• 16:22 – 18:28: Shelby’s financial background and home purchase
• 20:02 – 22:31: Income, basic living expenses, and housing costs
• 24:40 – 27:39: Savings strategy and emergency fund realities
• 27:39 – 34:18: Dissecting credit card debt and balance transfer tactics
• 31:42 – 33:23: Wants category and lifestyle choices
• 34:18 – 38:08: Listener Q&A on pausing savings and transferring debt

For tailored budgeting help, reach out to the NerdWallet team via their hotline or email. Let the Nerds help you build the roadmap for a stronger financial future—whether you’re holiday shopping, managing debt, or planning for 2026 and beyond!