04.30.25 Tariff Proof Your Wallet / SAVE on Home Energy

Summary

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.

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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.

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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)

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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)

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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).

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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)

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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.

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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.

Transcript

[Narrator]

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[Clark Howard]

It'S great to have you here on the Clark Howard Show. You know our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. And today I'm going to tell you my favorite way for you to tariff proof your wallet. And later, do you know that this is a time you should be thinking specifically about how you're going to lower the electricity costs at your home? There are some specific reasons why that I'm going to fill you in on later and I'm also going to take your questions. When you got one for me, submit [e-mail] ask so other day on the podcast I addressed the fact that Temu and Shein, which have been such powerhouse sellers in the United States, are both having to raise prices by huge amounts because in the case of Timu, almost everything comes from China. Xiyan a substantial amount of their manufacturing is done in China, so the cost of goods so high. But the opportunity right now is going to be a shock to hear this from me, I know you're going to be shocked. Shocked. The real opportunity right now is buying secondhand stuff of all kinds from clothes to things secondhand market is gigantic. I believe in it so much as a place that you should be buying things. And there's a pattern that my wife mentioned to me the other day and then she showed me examples that the second hand market goes all the way from flea market to buying Salvation army thrift or Goodwill or private players in that market to boutique kind of used stores particularly for clothing to now high end resale. There's high end resale in major metro areas. There's the always financially troubled, the real real that is still out there selling online and a few physical stores and high end stuff. That market is really slowed down and there are a lot of price cuts and Celine was showing me on the realreal how many price cuts there are and so many things which historically had not been a pattern. She shops at a number of second hand high end. She buys all her clothes used and buys jewelry used and all this stuff. She's seen this pattern that their sales have slowed down meaning they're an even better deal buying secondhand than before. And general secondhand obviously is going to be the deal and tariff proofed. So this is something when you're looking how you're going to handle your money. This is a perfect example of a way to stretch every dollar. Regardless of what's happening in the macro market. It's an opportunity for you in your own life, in your own household to stretch that dollar as far as you can.

[Caller]

Krista all right, we're going to start with this question that came in from Sue. She says is it safe to shop on temu?

[Clark Howard]

Yeah, I mean it's safe. I mean temu, the quality, the goods, people will gripe about them but generally there's they were so cheap that it's like an ah well. And as I mentioned in a prior podcast I saw a report that more than half of American shoppers have a TEMU account.

[Caller]

Oh wow.

[Clark Howard]

That seems impossible. There would be.

[Caller]

That really does. Wow.

[Clark Howard]

But we I guess also because the price points usually when people are unhappy with customer no service experience and all that, we hear complaints. But I think the price points at TEMU pre tariffs were so low that people were just like oh well okay.

[Caller]

Miriam in Georgia says I don't trust the government to remove a tax or the manufacturer for increasing the price of their product when they can sneak it on the customer. For example, In World War II there, there was a luxury tax of 25% on cosmetics. I was born after the war was over and by the time I began buying lipstick the tax was still in place. A tube of lipstick cost a dollar so the tax made it $1.25. When the luxury tax was dropped, the basic price of the lipstick was then still 1:25.

[Clark Howard]

They just pocketed it.

[Caller]

I'm afraid the high cost of A dozen eggs will never go back to the recent regular price before the shortage for the same reason the egg producers can get away with it.

[Clark Howard]

Miriam, it won't play that way with eggs. With commodities. Think of gasoline, think of natural gas. Think of any produce item the market. At first people try to hold on to the then higher price. But is the cost at wholesale goes down. The cost to retail does also go down. Think about all the times with commodities when there are times sugar had gone through the roof. I feel like sugar at one point went through the roof and then it came back down. Then we don't realize, oh, the price of sugar is not so expensive anymore. And you think about with gasoline all the cycles where gasoline goes up higher and higher, you know, goes over $4 a gallon. I'm not talking California. I know California is its own fuel market. So I'm talking prices for the rest of America. It'll run up to $4 a gallon. And then right now in a lot of states it's down to two something a gallon. And so commodities are in their own classification. Let's say though you have a good that's a processed food item. So on the supermarket shelf and it has egg product in it. The manufacturer that packaged item raised the price they are then fit your thing you were talking about about the lipstick. They do not lower that price back down when the cost of the commodities in that item go down. And only the pressure of private label brings down the price of packaged goods where commodities simply ultimately respond to the market.

[Caller]

Okay, Brian in Virginia wrote this one. I received an email from my insurer about installment fees changing. I reviewed my statements and there was no installment fee itemized even though my policies are all set up for monthly installments. When I signed up, the customer service rep mentioned that I could pay monthly or in full the same total either way. I said monthly because why not? It's the same either way. It makes my budget less lumpy. I contacted customer service and found out that they used to waive this installment junk fee if you set up autopay. But now they intend to start ripping customers off for hundreds of dollars a year if we don't take immediate action to change billing instructions to pay in full and or give them direct access to our bank accounts.

[Clark Howard]

Okay, so this is Brian, a continuation of a theme we've been hearing from different companies and different industries, all different ways that I gather that the installment fee you said that if you give them direct access to your checking account, ach, they're not going to charge you the installment fee, junk fee, on the other hand, if it's charged to a credit card or some method where you have to make the payment and installments, they're going to charge you the junk fees. And this is a clear pattern that we're seeing in all different forms everywhere. Number one, any industry where you now pay a bill by credit card, you're going to see more and more where they're charging you a punitive fee to pay by credit card and then the whole thing of billing you in installments, companies are going to look at that as an additional cost to them, billing and installments instead of a lump sum, and they're going to charge you some kind of junk fee for it. At least your insurer offers the option of a monthly payment by ach as I understood what you said, and avoid having to pay the installment junk fee. But yeah, this is absolutely a clear change in billing practices across big companies and small. And just so you can throw an egg at me, 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. Because of the Visa MasterCard Cartel in the U. S, we have by far the largest fees that retailers and businesses have to pay for taking credit cards of any place on earth that I'm aware of. And it's a huge expense for businesses and it should be transparent. And if they want to pass it on to us, they should be able to do that. Don't waste those eggs though. Coming up ahead, power bills, for a number of reasons in the United States are escalating after years of consumption and bills staying pretty flat. And so you got to have a new playbook so you're just not being eaten up. Buy much higher power bills. I want to talk about that.

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[Clark Howard]

We as humans have such an ability to adapt to conditions. We are not sitting ducks unless we choose to be. We are in a cycle partially because of AI and all this demand for data centers which require huge consumption of energy. We're seeing much, much higher power bills coming down the road, but we're not a sitting duck. I want to give you an example. Where is power the most expensive of the 50 states? Okay, let's think about that. Where would it be most expensive in the us? Hawaii. It's an island market. It's hard to serve and so power costs are outrageous. So what have people in Hawaii done in massive numbers at all levels and prices of housing People have put in solar arrays, they put in backup batteries to deal with power outages. That can come particularly in an island market. We just saw that in Puerto Rico where the entire island went dark except for people who had solar with battery backup or businesses that generators. This is one of those things that as power costs go up, rethinking the economics of how we reduce our energy bills in our house is so much in order. We've got the big tax credits right now for as long as those remain in place. And solar is something that is not a simple short decision because it can be expensive to put in solar unless you have a more modest sized house. And especially if you live in a climate with enormous sunshine like Hawaii or Arizona or Texas or New Mexico dimension Southern California. I mean, solar is just a slam dunk over time, putting it in. But if solar is a bridge too far. And remember, with solar now, as battery costs have come down so much, it's become like a twofer that you put solar on the roof or if you're in a position where solar works on the yard, it's a cheaper place to put solar and batteries in the garage. Battery backup and one of the key things with batteries, even if you're not going to do solar batteries. In states where power costs are going up, up, up and away, batteries can be a big money saver because there are these big batteries that are designed for residential use and they cost about a third more now per output what putting in a traditional natural gas generator would be at a house. Used to be they were like 20 times the cost, but not, not that much anymore. What they do is they allow you to play the time of use game where power consumption drops to like nothing for utilities like midnight to 5am So a lot of utilities almost give power away with time of use meters overnight. So what you do is you store power to those batteries in those overnight hours. It works for the utility, it works for you. And then during the day, when power is a fortune, you power your house from the batteries. And then that night again, you replenish the batteries at the very low rates. I mean, this is the kind of thing you have to think about because one side is how do you become your own power company? Solar batteries, whatever. The other side is the dullsville thing, but much cheaper. That's making sure with these much higher utility rates that you actually have decent insulation in your home that you have done the things you can do with automatic thermostats that will reduce your power consumption for heating and cooling by about 2025%. Those thermostats are cheap that you do things with weather stripping and, you know, deal with the heat exchange and cold that come in under the threshold where you don't have doors properly insulated coming into your home. There are simple things that don't cost a lot. But the quickest payback just about of all is, is making sure you got proper insulation in your house. So one thing you do reduce the consumption. The other thing you do is be your own power provider. And it sure is great when you open a bill. And at our home last month, our power bill, was it $12, something like that, because we have solar on the roof. And so our bill was as close to zero as you could imagine. It's a great feeling.

[Caller]

Okay, I have some related questions. Judy in Connecticut wrote in with a really specific one. So I'm not sure if you're familiar with these, but I'll just read it. Lion brand portable solar generators are at Costco. I want to buy the Summit, but I also like the Adventure and Safari. Can you tell me how they compare to others that you've reviewed?

[Clark Howard]

So I have not reviewed. I'm not technically capable of reviewing these battery backup systems because we're talking about those not, not a whole house. Natural gas generator or portable.

[Caller]

It says portable solar generators. Yeah.

[Clark Howard]

Yeah. So those come with some solar panels and you can charge them up, plugging them into the wall. Your power goes out, you get some replenishment of the batteries by having the solar array. No, I, and I looked Consumer Reports, because I looked for this before. For a relative, Consumer Reports has never rated any of these portable battery things. This is one where you have to go with the wisdom of the crowd and actually dig in and read reviews of the various portable battery generators or power things. What. There's some name for those things. I don't think you call them power generator, but the battery backup units that are portable and really get a sense not from what the sales stuff says, but what people who have them have experienced. And the. I mentioned the cost of the. The big battery units that you have installed in your garage. Those have come way down in price. The performance of these portable batteries has gone way up. What you're getting per dollar in terms of battery reserve is so much more robust than it was even two years ago. A big change in this market. But wisdom of the crowd here rules here. I have no wisdom as to what would make the one particular better than another.

[Caller]

This one came in from Sarah in Texas. I'm considering buying a portable battery storage unit to provide backup power. When the power goes out, it will be at least 3 kilowatt unit or more. According to the IRS website, a storage battery with at least this much capacity that is purchased in 2023 or later qualifies for a residential clean energy credit of up to 30%. It does not have to be hooked up to solar. Does it qualify if I buy a standalone unit that I plug into an outlet and use this for appliances and lights in an emergency, or does it need to be permanently installed and integrated into my whole house electrical system?

[Clark Howard]

No. My understanding of the code is it does not have to be a permanently installed, professionally installed unit, but if you have one that you buy meets the 3 kilowatt standard, you're just fine.

[Caller]

Mallory in Georgia says I'm 27 years old and have been out of school and working for two years now. I make $60,000 a year. I have approximately 39,000 in federal student loans and also borrowed from a family member and owe them around 20,000. I hear a lot about investing and would like to think about how I can help myself financially in the future, but it's hard to consider investing when I have so much left to pay on my student loans. Would you suggest focusing on paying my loans off as quickly as possible? Federal loans range between 3 and 8% interest rates averaging 5 and a half with no interest on the money I owe my family member or investing. If you feel that I should invest, any helpful tips on what I should invest in? First, investing is overwhelming. I have a 401k at work that is 3% and my company matches equally as well as a High Yield savings account with $6,000 earning 4.3%. I am only earning around $20 a month in the High Yield Savings Account, so I feel I may get a better return elsewhere. My net profit each month after subtracting all of my expenses and rent and loan payments ranges from 1 to $500. What are your thoughts?

[Clark Howard]

Okay, so first of all, a quick note. The 401k that you're putting in 3% the employer is matching with three. If they offer the Roth version of the 401k, that's what I want you in. All right, so the student loans. You got a student loan at 8%. That was the high one, yes.

[Caller]

The average five and a half.

[Clark Howard]

All right. But I don't care about the average. I care about the high, high priority to pay a student loan with an 8% interest rate. Earning 8% on investments. You're not earning, you're earning Half that on savings. That's a high bar. Turn above 8% consistently. But you have a guaranteed 8% return on that 8% student loan. Student loan you have. I think you said your low was 3%. Pay absolute minimums on it. In fact, any student loan up to the highest one. The 8% is where your real priority is. When you have the money you have available to you. Once you throw in every dollar you can at that 8% student loan, just minimums at the ones below that. Once you paid off the one at 8%, I want you to move to the next highest. I do want it to be a priority. On the other hand, if that 3% is a fixed rate for years to come, just pay the minimum on it. So you can then put a higher priority on putting money aside more in that employer provided 401k eventually maybe having your own Roth IRA. I don't want you to take money out of the 6,000 you have in the high yield savings account. You need to have rainy day money and that needs to sit there. Not earn a lot, but you're earning 4%. I think you said that's money you need to have because rainy days come and you're doing the best you can with a lot of stuff going on. You're still in your 20s. I think you're doing great and just bit by bit work down that student loan debt and build up long term money. Good job. And I want to thank you so much for joining us on today's podcast and know that we're here for you all week long. So many different ways. One of them is free one on one advice from the Team Clark Consumer Action center available to you 30 hours each week. And if you go to clark.com cac you'll see how to do that. But what we're about overall is empowering you with knowledge so that you learn ways to save more, spend less and avoid getting ripped off and have a great rest of your day.