The Clark Howard Podcast – Episode Summary (February 17, 2025)

In this engaging episode of The Clark Howard Podcast, host Clark Howard and his co-host Mark delve into several pressing consumer issues, offering valuable advice on gym memberships, the privacy concerns surrounding health trackers, and the hidden dangers of popular payment apps. Additionally, they address listener questions ranging from fitness app subscriptions to gas price variances at Costco. Below is a detailed summary capturing all key discussions, insights, and conclusions.

1. Navigating Gym Memberships: Avoiding Long-Term Contracts

As winter resolutions fade and gym memberships dwindle, Clark and Mark discuss the pitfalls of long-term gym contracts. Mark emphasizes the instability of the fitness industry, advising listeners to avoid being locked into lengthy agreements that can become burdensome if circumstances change.

Mark (02:05): "My thing is for you to join a gym month to month even if you end up staying for years to come."

He highlights Planet Fitness as a prime example of a flexible, month-to-month option that offers affordable membership levels without the pressure of long-term commitments. Clark warns against gyms that employ high-pressure sales tactics and rollover provisions, which can trap consumers into unfavorable agreements.

Clark (04:50): "A contract gym is only about the contract and they actually have the opposite interest signing you up and hoping you don't work out."

Key Takeaways:

• Opt for Flexibility: Choose month-to-month gym memberships to retain control over your financial commitments.
• Beware of Contracts: Long-term contracts can lead to unexpected expenses and limited flexibility.
• Consider No-Frills Options: Gyms like Planet Fitness provide essential facilities without the hefty price tags and binding contracts.

2. Health Trackers & Privacy: Protecting Your Personal Data

Clark expresses concern over the privacy implications of using health and fitness trackers. Citing a Consumer Reports investigation, he reveals that many fitness apps monetize user data by selling personal information, often without explicit consent.

Clark (06:30): "Consumer Reports found again and again these apps are taking your personal information and making money from it, selling off your info."

He advises listeners to carefully review the terms of use and consider the potential risks associated with data sharing. For those uncomfortable with these practices, Clark suggests discontinuing the use of such devices.

Clark (06:50): "And if that really freaks you out, then you shouldn't be doing what I'm doing and wearing any of these things."

Key Takeaways:

• Review Privacy Policies: Always check how your data is being used and shared by fitness apps.
• Limit Data Sharing: Consider minimizing the information you provide to these devices or opting out entirely.
• Stay Informed: Stay updated on privacy practices to make informed decisions about the technology you use.

3. Payment Apps Warning: The Hidden Risks of Cash App, Venmo, and Zelle

A significant portion of the episode is dedicated to warning listeners about the vulnerabilities associated with modern payment apps like Cash App, Venmo, and Zelle. Clark explains that unlike traditional banking methods, these apps often lack robust consumer protections, making users susceptible to fraud and unauthorized transactions.

Clark (17:05): "The problem with them is it's not a matter of if. It's only a matter of when you're going to get burned."

He details recent penalties faced by Cash App, including over a quarter-billion dollars in fines and restitution due to security failures that allowed criminals to steal funds. Clark advises using separate financial accounts for these apps and limiting the amount of money linked to them to mitigate potential losses.

Clark (21:10): "What would be smarter is if the banks realized... you don't have to be afraid using one."

Mark reinforces these points by explaining that Zelle, being directly embedded within bank accounts, poses even greater risks due to its lack of security measures compared to traditional banking systems.

Mark (23:02): "Because it's not about paying Kim the dentist... it's about the other things that happen with Big Bad Zelle."

Key Takeaways:

• Understand the Risks: Payment apps may lack sufficient consumer protections against fraud and theft.
• Use Separate Accounts: Link these apps to a dedicated account with limited funds to minimize potential losses.
• Stay Vigilant: Regularly monitor transactions and report any suspicious activity immediately.

4. Listener Questions and Real-Life Scenarios

a. Oura Ring Membership Confusion

Listener Krista from Pennsylvania inquires about an unexpected requirement to pay for a membership after purchasing an Oura Ring. Mark clarifies that some Oura Ring purchases included lifetime memberships initially, but updates or new models may require additional fees.

Mark (07:44): "Aura never when they started had any idea of doing what so many apps do and charge you a monthly subscription fee or an annual fee."

Advice:

• Check Membership Status: Review your account details and original purchase terms to confirm if a lifetime membership applies.
• Contact Support: Gather all purchase documentation and reach out to Oura’s customer service for resolution.

b. IRS Fillable Forms Legitimate?

Daniel from California asks about redirecting to a seemingly unrelated website when accessing IRS fillable forms, raising concerns about legitimacy and security.

Mark (10:38): "Free File is a cooperative effort between the IRS and a bunch of tax prep software firms where people who qualify... can use a third party software package for free."

Advice:

• Verify URLs: Always ensure you are accessing official IRS resources directly through irs.gov.
• Understand Program Differences: Familiarize yourself with IRS programs like Direct File and Free File to choose the appropriate method for filing taxes.

c. Variable Gas Prices at Costco

Listener Charlotte from Arizona notices significant gas price differences between two Costco locations close to her and seeks explanations.

Mark (24:42): "Costco prices gas competitively adjacent to a store depending on the metro market, usually within a 2 or 5 mile radius of a store."

Advice:

• Market Competition: Gas prices vary based on local competition and market conditions.
• Consistency: Recognize that while Costco gas is generally a loss leader to drive store traffic, prices can fluctuate based on location-specific factors.

d. Donating Through Stores vs. Direct Donations

Lynn from Florida questions the effectiveness and transparency of rounding up purchases for charitable donations through retailers.

Mark (28:05): "There is a benefit to you if you take advantage of it and just positive publicity for the retailer or the restaurant."

Advice:

• Direct Donations Preferred: Whenever possible, donate directly to nonprofits to ensure that funds are utilized effectively.
• Understand the Process: Be aware that store-driven donations may serve more to benefit the retailer’s public image than the intended cause.

5. Inspirational Listener Story

Daniel from California shares a remarkable personal story about his wife’s financial journey, highlighting the importance of saving and financial discipline.

Daniel (27:38): "She saves over 20% of her earnings, lives modestly, and is debt free with an 800 plus credit score."

This anecdote serves as a testament to the power of consistent saving and prudent financial management, inspiring other listeners to adopt similar habits.

Conclusion

Throughout this episode, Clark and Mark provide actionable insights into avoiding financial pitfalls related to gym memberships, safeguarding personal data from fitness trackers, and navigating the risks of modern payment apps. By addressing real-life listener questions and sharing inspiring stories, they empower their audience to make informed financial decisions and steer clear of common consumer traps.

For personalized advice or to pose your own questions, visit Clark Howard's Ask Clark. Join the conversation and take control of your financial well-being with The Clark Howard Podcast.