The Clark Howard Podcast - Episode: Tariff Proof Your Wallet / SAVE on Home Energy Release Date: April 30, 2025
Clark Howard, a renowned money expert, delves into strategies for protecting your finances against tariffs and offers insightful advice on reducing home energy costs. This episode is packed with practical tips, expert opinions, and listener questions that provide actionable steps toward financial freedom.
1. Introduction
Clark Howard sets the stage by emphasizing the podcast’s mission: empowering listeners to make informed financial decisions. He introduces two main topics for the episode:
- Tariff Proofing Your Wallet
- Saving on Home Energy
He also invites listeners to submit their questions for future episodes via www.clark.com/askclark.
2. Tariff Proofing Your Wallet
Impact of Tariffs on Popular Brands
Clark discusses the recent price hikes from major online retailers like Temu and Shein due to increased tariffs on goods manufactured in China. He explains, “Temu and Shein… are both having to raise prices by huge amounts because almost everything comes from China. The cost of goods is so high” (01:07).
Opportunity in the Secondhand Market
Highlighting the economic shift, Clark introduces the secondhand market as a silver lining. He states, “The real opportunity right now is buying secondhand stuff of all kinds from clothes to things. The secondhand market is gigantic” (02:15).
He elaborates on the diverse range within the secondhand market, from flea markets and thrift stores like Salvation Army and Goodwill to high-end resale platforms such as The RealReal. Clark underscores, “General secondhand obviously is going to be the deal and tariff proofed” (03:10).
Notable Quote:
“Regardless of what's happening in the macro market, it’s an opportunity for you in your own life to stretch that dollar as far as you can.” — Clark Howard (03:10)
3. Listener Questions: Tariff and Consumer Concerns
a. Is It Safe to Shop on Temu?
Caller: Sue (04:59)
Clark reassures listeners about the safety of shopping on Temu, acknowledging concerns about product quality but emphasizing affordability. “Temu is safe. People might gripe about the quality, but the prices are so low that many accept it” (05:07).
Notable Quote:
“More than half of American shoppers have a TEMU account. That seems impossible.” — Clark Howard (05:32)
b. Concerns About Hidden Taxes and Price Increases
Caller: Miriam from Georgia (05:53)
Miriam expresses distrust in the government and manufacturers regarding hidden taxes, using the example of WWII's luxury tax on cosmetics. She fears prices, such as those for eggs, will not revert to pre-shortage levels.
Clark's Response: Clark explains that while certain commodities like eggs and gasoline may see price fluctuations based on market conditions, manufacturers typically do not maintain inflated prices once wholesale costs drop. “With commodities, the cost to retail does go down when wholesale costs decrease” (06:36).
Notable Quote:
“Think of gasoline, natural gas, any produce item—the market ultimately responds to costs.” — Clark Howard (07:00)
c. Insurer Installment Fees Increasing
Caller: Brian from Virginia (08:25)
Brian shares his experience with his insurer imposing installment fees unless he switches to paying in full or authorizing direct bank withdrawals.
Clark's Analysis: Clark identifies this as part of a broader trend where companies introduce "junk fees" for installment payments, particularly when payments are made via credit cards. He criticizes the Visa-MasterCard fees imposed on businesses, suggesting transparency and fairness should prevail. “If you can afford to waste that egg throwing it at me, I am absolutely in favor of merchants passing on the credit card junk fees they have to pay onto you as a customer” (09:10).
Notable Quote:
“Companies are charging punitive fees for billing by credit card, viewing installments as an additional cost.” — Clark Howard (09:10)
4. Saving on Home Energy
Clark shifts focus to the escalating power bills in the United States, attributing the rise to increased consumption fueled by AI and data centers. He emphasizes the urgency of adopting energy-saving measures to mitigate these costs.
a. Solar Panels and Battery Backups
Using Hawaii as a case study, Clark illustrates how high energy costs drive residents to invest in solar panels and battery backups. “People in Hawaii have put in solar arrays and backup batteries to deal with power outages” (14:34).
He highlights the benefits of solar energy, especially in sunny climates like Arizona and Texas, and notes the decreasing costs of battery storage. “Battery backups have come down in price significantly, making them a viable option” (15:20).
Notable Quote:
“With battery backups, you can store power during low-rate periods and use it when power is expensive.” — Clark Howard (17:45)
b. Home Insulation and Energy Efficiency
Clark advises on simple, cost-effective methods to reduce energy consumption:
- Proper Insulation: Ensuring the home is well-insulated to maintain temperature.
- Automatic Thermostats: Utilizing smart thermostats to optimize heating and cooling.
- Weather Stripping: Sealing doors and windows to prevent energy loss.
He remarks, “The quickest payback is making sure you have proper insulation in your house” (18:30).
c. Time of Use Energy Strategies
Clark explains the concept of time-of-use meters, where electricity is cheaper during off-peak hours (e.g., midnight to 5 a.m.). By storing power in batteries during these times, homeowners can use stored energy during peak hours, significantly reducing bills. “You store power overnight when rates are low and use it during the day when power is a fortune” (19:10).
Personal Example: Clark shares his own experience, where his solar setup reduced his power bill to nearly zero. “At our home last month, our power bill was $12 something because we have solar. It was as close to zero as possible” (19:50).
5. Listener Questions: Home Energy Solutions
a. Portable Solar Generators
Caller: Judy from Connecticut (20:02)
Judy inquires about the Lion Brand portable solar generators available at Costco, seeking comparisons between the Summit, Adventure, and Safari models.
Clark's Response: Clark admits he hasn’t personally reviewed these units but suggests researching consumer reviews for real-world performance insights. “Look for reviews from people who have used them, not just sales information” (20:37).
b. Residential Clean Energy Credit for Battery Storage
Caller: Sarah from Texas (20:39)
Sarah asks if a standalone portable battery unit qualifies for the IRS’s residential clean energy credit, which requires a minimum of 3 kilowatts capacity.
Clark's Response: Clark confirms that as long as the battery meets the capacity requirement, it doesn't need to be permanently installed. “If you have one that meets the 3 kilowatt standard, you’re just fine” (22:46).
c. Managing Student Loans and Investing
Caller: Mallory from Georgia (22:59)
Mallory, a 27-year-old earning $60,000 annually, seeks advice on whether to prioritize paying off student loans or begin investing. She has $39,000 in federal student loans averaging 5.5% interest and owes $20,000 to a family member at no interest.
Clark's Advice: Clark recommends prioritizing high-interest debt first. “Pay a priority on the 8% student loans” (24:07). He advises continuing to contribute to the employer’s matched 401(k) while maintaining a high-yield savings account for emergencies. Once high-interest debts are cleared, Mallory can focus more on investing and retirement accounts.
Notable Quote:
“With an 8% student loan, you have a guaranteed 8% return by paying it off.” — Clark Howard (24:25)
6. Conclusion
Clark wraps up the episode by reinforcing the importance of proactive financial management. He encourages listeners to utilize resources like the Team Clark Consumer Action Center for personalized advice and thanks them for tuning in.
Key Takeaways
- Secondhand Market: A viable option to save money amidst rising tariffs.
- Energy Efficiency: Investing in solar panels, battery storage, and home insulation can significantly reduce power bills.
- Financial Priorities: Focus on eliminating high-interest debts before venturing into investments.
- Consumer Vigilance: Stay informed about changes in billing practices and hidden fees to protect your finances.
By implementing these strategies, listeners can safeguard their wallets against economic fluctuations and rising living costs, paving the way toward greater financial stability and freedom.