The Clark Howard Podcast – Episode Summary: Housing & Transportation Costs / 2025 Traffic

Release Date: February 10, 2025

In this episode of The Clark Howard Podcast, host Clark Howard delves into the escalating costs of housing and transportation, explores the anticipated traffic surge for 2025, and addresses a series of listener questions that touch on crucial consumer issues. The episode is structured into clear sections, each providing valuable insights and actionable advice for managing personal finances effectively.

1. Managing Increased Housing Costs

Timestamp: 00:55 – 08:32

Clark Howard opens the discussion by addressing the significant financial strain many individuals face when transitioning from renting to homeownership. He emphasizes that while buying a home can be a dream come true, it often leads to a cascade of additional expenses that can destabilize personal finances.

• Escalating Mortgage Rates and Home Prices: Howard notes that despite some stabilization in home prices, the effective cost of owning a home remains prohibitively high due to rising mortgage rates. He advises prospective homeowners to meticulously calculate their budgets to accommodate these increased costs.

  Clark Howard [02:10]: "The effective cost of owning a home is so high. It's something you have to really think through."

• Increased Spending Post-Purchase: Transitioning to homeownership often triggers a wave of spending on new furniture and other home necessities. Howard warns against the allure of store financing, highlighting the danger of high-interest rates that can lead to long-term financial obligations.

  Clark Howard [04:00]: "Store financing... if you don't get it paid back in that time, you're going to be paying huge interest, usually retroactive to day one at usually for furniture, 36% interest."

• Vehicle Upgrades and Transportation Costs: Howard shares an anecdote about a Team Clark staff member who resisted dealership pressures to trade up her vehicle. He underscores the importance of maintaining older, fully paid-off cars to minimize transportation expenses.

  Clark Howard [06:15]: "The second biggest expense most of us have in our lives, what our transportation costs. And it's not unusual anymore for people to have over $1,000 a month in expenses for the vehicle they drive."

2. Listener Questions and Expert Advice

Timestamp: 08:32 – 34:13

Clark Howard addresses several listener inquiries, providing expert advice tailored to each unique situation.

a. Reward Points Theft – Max from North Carolina

Max reported unauthorized redemption of $1,000 worth of travel points from his credit card rewards. Despite contacting his credit card company, only a fraction of the points were restored.

• Advice: Howard recommends Max file a complaint with @consumerfinance.gov to escalate the issue beyond the limited authority of call center representatives.

  Clark Howard [09:26]: "You need to immediately, Max, file a complaint@consumerfinance.gov... It's usually easier to get those restored than it is to get airline frequent flier points in your account restored."

b. Adoption of Apple Pay – Alan from Colorado

Alan inquires why major retailers like Walmart and many grocery stores have not widely adopted Apple Pay, despite its security advantages.

• Response: Howard explains that the primary barrier is the substantial investment required to overhaul existing payment systems to accommodate tap-to-pay technologies like Apple Pay and Google Wallet.

  Clark Howard [11:23]: "A big retailer like Walmart, taking their register systems all over the country and redoing them with what's necessary to be able to accept Google Wallet or Apple Pay is quite a herculean lift."

c. DNA Testing for Health and Wellness – Jim from Colorado

Jim seeks advice on the legitimacy and safety of DNA testing services that are being marketed for health and wellness insights.

• Guidance: Howard cautions against consumer DNA tests unless there is an extreme medical necessity and emphasizes concerns over data privacy and potential misuse of genetic information.

  Clark Howard [13:11]: "How is your information protected and how it might leak out to others, because we have no specific law in effect in the United States that protects the confidentiality of that data."

d. Funding a 529 Plan – Adam from Oregon

Adam asks when a 529 college savings account can be considered sufficiently funded to prevent the need for student loans for his three-year-old son.

• Solution: Howard advises using educational cost projections and online calculators, such as those provided by the Massachusetts Educational Financing Authority (mefa.org), to determine the sufficiency of current contributions and whether additional funding is necessary.

  Clark Howard [25:15]: "Look 15 years out from now... four years will cost you a quarter million for a bachelor's at a public state school or half a million at a private institution."

e. Addressing an Elder’s Driving Safety – Bernie from Florida

Bernie seeks advice on how to convince his 85-year-old father to stop driving for safety reasons and inquires about potential liability issues if his father causes an accident.

• Recommendations: Howard shares his personal experience of managing a similar situation by safely restricting his mother's driving and emphasizes the importance of unified family efforts. Regarding liability, he clarifies that typically, as long as the vehicle is owned and insured by the father, his children are not liable.

  Clark Howard [29:08]: "In many states, the physician can revoke the driver's license privilege with the state. There's a procedure in many states for this because it's such a complicated Thing in a family."

f. Car Inspections When Buying Used Cars – Kay from California

Kay inquires whether it is necessary to have an independent mechanic inspect a used car purchased from sites like CarMax.

• Advice: Howard strongly recommends independent inspections, especially for cars older than three years, to avoid potential issues not disclosed by the seller. He highlights the importance of using the return period offered by sellers like CarMax to mitigate risks.

  Clark Howard [31:28]: "Yes, yes, you buy from CarMax or Carvana... when you're buying a used car... have it checked out by an independent mechanic... within the return period."

3. Anticipated Traffic Surge in 2025

Timestamp: 34:13 – 24:33

Howard shifts focus to the broader issue of increasing traffic congestion anticipated in 2025, attributing it to several interrelated factors.

• Return to Traditional Office Work: With the resumption of full-time office work, especially among federal employees following directives like President Trump's order for federal workers to return to office five days a week, commutes are significantly increasing.

  Clark Howard [16:12]: "President Trump has ordered all federal workers back in the office five days a week... traffic's gonna be rough."

• Population Growth in Metro Areas: Rapid population increases, particularly in the southern states and Texas, exacerbate traffic woes as more residents contribute to road congestion.

• Cultural Shifts and Lifestyle Adjustments: Howard discusses the reversion to pre-COVID commuting patterns as remote work becomes less prevalent, leading to intensified traffic during traditional peak hours.

  Clark Howard [21:55]: "The culture is changing back. Not all the way, but very heavily back to what it was pre-COVID."

• Advice for Commuters: Howard advises listeners to strategically plan errands and other activities to avoid peak traffic times, thereby reducing stress and saving time.

  Clark Howard [24:12]: "Flex when you go run an errand, when you go buy groceries, all those things... think about when we do something based on mind-numbing traffic."

4. Personal Anecdotes and Experiences

Throughout the episode, Howard intersperses personal stories to illustrate his points and connect with listeners on a relatable level.

• Wearing Suits at IBM: Howard reminisces about his time wearing formal suits as a condition of his job at IBM, contrasting it with the more relaxed dress codes of today's workplaces.

  Clark Howard [21:55]: "I hate wearing a suit... But that was a condition of employment."

• Handling a Parent’s Driving Safety: Sharing his experience with his mother's driving safety, Howard explains how he and his sister managed to transition her from driving to using alternative transportation options without legal repercussions.

  Clark Howard [28:21]: "We signed her up with a taxi company that was in her part of town... it was cheaper for her rides actually than having and insuring a car."

5. Final Thoughts and Resources

In wrapping up, Howard emphasizes the importance of proactive financial planning and taking advantage of available resources to manage rising living costs effectively.

• Resource Utilization: He encourages listeners to visit clark.com and clarkdeals.com for more tips on saving money, avoiding rip-offs, and making informed financial decisions.

  Clark Howard [34:02]: "We're here to serve you all day, all night, 24 hours a day, every day of the year at clark.com and clarkdeals.com with advice and information on your wallet."

Key Takeaways

1. Budgeting for Homeownership: Transitioning from renting to owning a home requires careful financial planning to accommodate higher mortgage payments and avoid overspending on furnishings and vehicles through costly store financing.

2. Maintaining Vehicles: Keeping older, fully paid-off cars can significantly reduce transportation costs and prevent accruing high-interest debts from unnecessary vehicle upgrades.

3. Consumer Vigilance: It's crucial to remain vigilant against fraud, such as unauthorized reward point redemptions, and to utilize proper channels for complaints to seek restitution.

4. Payment Technologies: While tap-to-pay technologies like Apple Pay offer enhanced security, their widespread adoption is hindered by the significant infrastructure investments required by large retailers.

5. Educational Savings Planning: Utilizing tools and resources to project future educational costs can help determine when to cease contributions to a 529 plan, balancing present contributions with future needs.

6. Elderly Driving Safety: Approaching sensitive issues like an elderly parent's driving requires a compassionate and strategic approach, leveraging available services to ensure safety without legal liability.

7. Traffic Management: Anticipating increased traffic due to societal shifts back to office work and population growth necessitates strategic planning to mitigate commute-related stress and time loss.

Notable Quotes

• Clark Howard [04:00]: "Store financing... if you don't get it paid back in that time, you're going to be paying huge interest, usually retroactive to day one at usually for furniture, 36% interest."

• Clark Howard [09:26]: "You need to immediately, Max, file a complaint@consumerfinance.gov... It's usually easier to get those restored than it is to get airline frequent flier points in your account restored."

• Clark Howard [13:11]: "How is your information protected and how it might leak out to others, because we have no specific law in effect in the United States that protects the confidentiality of that data."

• Clark Howard [21:55]: "I hate wearing a suit... But that was a condition of employment."

• Clark Howard [24:12]: "Flex when you go run an errand, when you go buy groceries, all those things... think about when we do something based on mind-numbing traffic."

Conclusion

This episode of The Clark Howard Podcast provides a comprehensive exploration of the financial challenges associated with increased housing and transportation costs, practical solutions for managing these expenses, and thoughtful responses to listener queries on a variety of pressing consumer issues. Clark Howard’s insights empower listeners to make informed financial decisions, navigate potential pitfalls, and adapt to evolving societal trends such as increased traffic congestion and changes in work environments.

For more detailed advice and resources, listeners are encouraged to visit clark.com and engage with the Team Clark Consumer Action Center for personalized financial assistance.