The Clark Howard Podcast: Episode Summary
Title: Finding A Side Gig / Finances: Teach Your Children Well
Release Date: February 12, 2025
Host: Clark Howard

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard delves into two primary topics: the burgeoning trend of side gigs in today's economy and the critical importance of financial education for children. Alongside these discussions, Clark addresses several listener questions, providing personalized advice on a range of financial matters.

Finding a Side Gig

Overview:
Clark begins by exploring the increasing prevalence of side gigs among Americans seeking extra income. He reflects on how side jobs have evolved from traditional part-time roles to diverse, app-based opportunities.

Key Points:

• Evolution of Side Gigs:
  Clark notes the shift from seasonal or part-time jobs to a myriad of app-driven gigs, such as food delivery and transportation services. He highlights the flexibility and variety these gigs offer but also cautions about potential downsides.

• Legitimacy and Earnings:
  With the rise of app-based work, Clark emphasizes the importance of discerning legitimate opportunities from scams. He warns listeners to be vigilant against apps that promise high earnings but may solicit personal information or hidden fees.

• Tax Implications:
  Clark discusses recent changes in tax reporting for income earned through apps like Cash App, Venmo, or PayPal. He advises freelancers to accurately report their income to the IRS to avoid penalties, even if some earnings were gifts from family or friends.

Notable Quote:
Clark Howard at [03:15]:
"You’ve got to be so cautious and careful with gig work. The thing being scammed is not nearly as common though, but the promises of income you'll earn aren't really great."

Finances: Teach Your Children Well

Overview:
Shifting focus, Clark underscores the necessity of incorporating financial education into children's upbringing. He laments the lack of standardized personal finance education in schools and urges parents to take an active role.

Key Points:

• Current Education Gaps:
  Clark points out that while some colleges mandate personal finance courses, many high schools do not, leaving a substantial portion of the population without essential money management skills.

• Parental Involvement:
  He encourages parents to model good financial behavior and engage in ongoing conversations about money. By doing so, children can learn practical financial skills suited to their developmental stages.

• Age-Appropriate Learning:
  From teaching unit pricing in elementary school to discussing savings and investments in high school, Clark advocates for a progressive approach to financial education tailored to a child's maturity.

Notable Quote:
Clark Howard at [17:00]:
"I want you to teach, I want you to do it. And you know, if it changes some of your habits to be better things along the way, even better."

Listener Questions and Clark's Advice

1. Lynn from Oregon: Managing Elderly Parents' Healthcare

Question:
Lynn struggles to find a primary care physician for her elderly parents and is torn between moving them closer or managing their care from a distance.

Clark's Advice:
Clark acknowledges the nationwide shortage of primary care doctors and criticizes concierge practices that overpromise but underdeliver. He recommends exploring alternative healthcare providers like One Medical and hiring a geriatric care manager to devise an optimal care plan.

Notable Quote:
Clark Howard at [07:27]:
"One Medical has, in a lot of cities, they have an office of geriatric specialists that attend to people that are Medicare eligible."

2. Kathy from Washington: Repair Costs for Toyota RAV4

Question:
Kathy is debating whether to invest in costly repairs for her 2011 Toyota RAV4, which has been in multiple accidents and now has significant paint and radio issues, with plans to sell the car in a year.

Clark's Advice:
Clark advises against spending over $1,000 on cosmetic repairs for an older vehicle. Instead, he suggests opting for affordable paint jobs to improve resale value and considering aftermarket radio upgrades to enhance functionality without breaking the bank.

Notable Quote:
Clark Howard at [12:46]:
"I think it is time to move on. And I don't know that you necessarily fix those items, but if you did, I would do one of the cheap aftermarket paint jobs."

3. Lexi from Florida: Debit Card Locking Anomaly

Question:
Lexi noticed her debit card was locked, yet she successfully withdrew cash from an ATM using Apple Wallet. She is concerned about the security implications.

Clark's Advice:
Clark confirms that a locked debit card should prevent ATM withdrawals and advises Lexi to contact her bank’s customer service to investigate the discrepancy. He highlights the importance of understanding the bank’s card security features and suggests verifying settings related to point-of-sale transactions.

Notable Quote:
Clark Howard at [15:37]:
"If you have it set for zero dollar for what's called point of sale, that would be using it as a card anywhere other than at an ATM."

4. Krista Lori from South Carolina: Soaring Life Insurance Premiums

Question:
Krista is concerned about her life insurance policy’s premium jumping from $46 to $680 per month after 2036 and seeks alternatives.

Clark's Advice:
Clark recommends evaluating the duration of coverage needed and considering purchasing a new level term policy before the current one expires. He explains that delaying could lead to higher premiums due to increased mortality risk and suggests exploring term lengths that align with her financial obligations.

Notable Quote:
Clark Howard at [23:34]:
"It's going to take away this fear of this cliff 11 years from now as long as you're healthy because then you may not even be healthy enough to qualify for a good level term insurance policy."

5. Paris from Florida: Considering a New Credit Card with Existing Debt

Question:
Paris, with a good credit score but existing debt in collections, asks whether she should apply for a new credit card offering attractive terms or focus on debt repayment.

Clark's Advice:
Clark advises that despite the temptation of beneficial credit card offers, Paris should prioritize paying off her $4,000 debt to improve her financial standing and credit score. He suggests using tools like Credit Karma to monitor her credit and cautions against accumulating more debt.

Notable Quote:
Clark Howard at [25:43]:
"If you’re okay to go ahead and apply, go ahead right now. Get the card. Use it sparingly. Your real effort needs to be paying off this $4,000 because it will hang over you."

6. Anonymous from Texas: Annuities vs. Brokerage Accounts

Question:
Anonymous, a high-income earner with significant savings, wonders whether to invest additional funds in annuities or taxable brokerage accounts.

Clark's Advice:
Clark suggests that annuities are generally not suitable for individuals in their late 20s with substantial investments. He recommends continuing with diversified investments in index funds and maintaining robust tax-advantaged accounts, emphasizing the importance of diversification and cautioning against over-reliance on employer stock plans.

Notable Quote:
Clark Howard at [27:48]:
"Annuities have no role in your life. And the immediate payout or longevity annuities, those are not till you’re retired."

Conclusion

Clark wraps up the episode by reiterating the value of personal financial education and the importance of making informed decisions tailored to individual circumstances. He encourages listeners to continue seeking knowledge, leveraging resources, and maintaining financial discipline to achieve greater financial stability and freedom.

Final Thoughts:
"There is no one right answer. And there are people who say, you know, I do exactly what you say. Please take what I say as an opinion. And there are times that what I give is straight out fact. There are other times that they are questions with nuance, with answers that have nuance as well. So take it as one piece of learning that you can put to work in your life."

Takeaways

1. Side Gigs:

   • Explore legitimate app-based opportunities cautiously.
   • Be aware of tax obligations related to gig income.

2. Financial Education for Kids:

   • Parents should proactively teach children about money management.
   • Age-appropriate lessons can build a strong financial foundation.

3. Listener Advice:

   • Tailored solutions exist for managing elderly care, vehicle maintenance decisions, debit card security, life insurance planning, credit management, and investment strategies.
   • Personal circumstances dictate the best financial actions.

4. General Advice:

   • Stay informed, prioritize debt repayment, and continue investing wisely.
   • Utilize available resources and seek professional guidance when necessary.

By addressing contemporary financial challenges and providing actionable advice, Clark Howard empowers listeners to navigate their financial journeys with confidence and clarity.