07.28.25 Inflation & Retail Adaptation / Everyday Is Scam Awareness Day - The Clark Howard Podcast

Summary

The Clark Howard Podcast – Episode Summary

Episode: July 28, 2025
Title: Inflation & Retail Adaptation / Everyday Is Scam Awareness Day
Host: Clark Howard

1. Navigating Rising Costs and Shifting Shopping Habits

In this episode, Clark Howard delves into the significant impact of inflation on consumer behavior. With the cost of goods steadily increasing, Americans are adapting by altering their shopping habits to save money.

Key Points:

Shift to Store Brands and Generics: Historically, U.S. consumers preferred brand-name products, but rising costs have pushed them towards more affordable store brands and generics.
Changing Retail Preferences: Retailers like Dollar General and Aldi are gaining traction as consumers seek cost-effective alternatives.
Shrinkflation Concerns: Clark explains the phenomenon of shrinkflation, where product sizes decrease while prices remain the same or increase. For example, “Hot Tamales used to come ... now what is this 4.5 ounces?” ([02:10]).

Notable Quote:

"Brand names cost more. Why? Because they're better sometimes. But that's not why they cost more. There's a lot of expense involved in packaging and marketing and advertising that you don't have with the store brands." – Clark Howard ([04:30])

Clark also highlights how manufacturers are reacting to declining brand-name sales by challenging competitors like Aldi in court, although he remains skeptical about the efficacy of these legal battles.

2. Listener Questions and Expert Advice

a. Investing a $20,000 Settlement for College ([06:05]–[08:04]): Jeffrey from Wisconsin seeks advice on investing a $20,000 settlement awarded to his 17-year-old daughter after a biking accident.

Advice Given:

529 Plan Utilization: Clark recommends continuing with the 529 plan for its tax-free growth, suggesting an age-based portfolio to ensure conservative investment until college.
Future Flexibility: He mentions the possibility of converting unused funds into a Roth IRA if they are not needed for education ([07:38]).

b. Handling Subscription Scams ([08:04]–[09:05]): Danisha from Kentucky shares her frustrating experience with a meal kit subscription that auto-renewed despite her attempts to cancel.

Clark's Response:

Effective Use of the Better Business Bureau (BBB): Clark commends Danisha for leveraging the BBB to resolve the issue, emphasizing that it works well with legitimate companies engaged in questionable practices ([09:05]).

c. Setting Up a 529 Plan without a Social Security Number ([09:34]–[12:35]): Peggy from Georgia faces challenges in setting up a 529 plan for her grandson due to her daughter-in-law’s reluctance to provide his Social Security number.

Advice Provided:

Alternative Ownership Structures: Clark suggests naming a successor owner in the 529 plan, typically the parent, to ensure future access and flexibility.
Direct Funding: He also recommends allowing the son to own the 529 plan directly, simplifying the process ([10:12]).

3. Everyday Is Scam Awareness Day

Clark dedicates a significant portion of the episode to raising awareness about the pervasive nature of scams, highlighting that 96% of Americans encounter scam attempts weekly ([14:34]).

Key Points:

Common Scams Discussed:
- Obituary Pirates: Scammers posing as funeral home representatives to exploit grieving individuals ([15:30]).
- Student Loan Scams: Increased targeting following new legislation affecting student loans.
- Storm and Cloud Storage Alerts: Fake warnings prompting unnecessary actions or purchases.
- Unsubscribe Scams: Risks associated with clicking unsubscribe links that may compromise personal information.
Scam Psychology: Most scams exploit greed, fear, or urgency, compelling victims to act without critical thinking.

Notable Quote:

"I don’t want you to be a cynic. I want you to be a skeptic." – Clark Howard ([18:00])

He emphasizes the importance of vigilance and skepticism in protecting oneself from financial fraud, underlining that scammers continuously evolve their tactics to deceive even the most cautious individuals.

4. Additional Listener Interactions

a. Life Insurance and Weight Loss Impact ([18:58]–[21:47]): Kate from Florida inquires about the benefits of obtaining new life insurance quotes after losing significant weight.

Clark's Guidance:

Timing for New Quotes: Advises waiting until achieving a normal BMI before seeking new quotes to potentially secure lower premiums.
Policy Adjustment Options: Suggests considering shorter-term policies and exploring options to convert or replace existing policies once weight loss is achieved ([20:15]).

b. Necessity of Checkbooks in a Digital Age ([21:47]–[23:42]): Matthew from Texas contemplates whether to discontinue using paper checks due to their infrequent use.

Advice Provided:

Starter Checkbooks: Recommends obtaining a courtesy starter book of checks from the credit union.
Alternative Payment Methods: Highlights the dangers and obsolescence of checks, advocating for digital payments whenever possible ([22:21]).

c. Unauthorized Apple Pay Transactions ([23:42]–[24:25]): A caller shares an incident where an unauthorized charge appeared on their Apple Pay after declining a receipt.

Clark's Response:

Importance of Alerts: Stresses the significance of setting up text alerts for all transactions to quickly identify and address unauthorized activities.
Immediate Action: Encourages monitoring digital payment platforms closely to prevent prolonged unauthorized charges ([24:25]).

5. Conclusion and Resources

In wrapping up, Clark reiterates the importance of staying informed and proactive in managing personal finances and protecting against scams. He promotes the podcast’s associated resources, including clark.com, clarkdeals.com, newsletters, and social media channels, offering listeners multiple avenues to access free financial advice and consumer protection tips.

Key Takeaways:

Adapt Shopping Habits: Embrace store brands and generics to mitigate the effects of inflation and rising costs.
Stay Informed on Scams: Maintain skepticism and utilize resources like the BBB to safeguard against fraudulent schemes.
Optimize Financial Planning: Use tools like 529 plans effectively and reassess financial products as personal circumstances change.
Embrace Digital Security: Leverage digital payment alerts and minimize reliance on obsolete systems like paper checks.

By addressing current economic challenges and providing actionable advice, Clark Howard empowers listeners to make informed decisions, save money, and navigate the complexities of modern consumerism.

Transcript

Clark Howard (0:00)

This message is brought to you by Apple Card. Get 3% daily cash back when you buy an iPhone 16 with your Apple card at Apple. Subject to credit approval. Apple Card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and more at applecard.com Raise the Rudders. Raise the sails.

Clark Howard (0:17)

Raise the sails.

Clark Howard (0:19)

Captain, an unidentified ship is approaching.

Progressive Insurance (0:21)

Over.

Clark Howard (0:22)

Roger, wait.

Clark Howard (0:23)

Is that an enterprise sale sales solution?

LinkedIn Ads (0:26)

Reach sales professionals, not professional sailors. With LinkedIn ads, you can target the right people by industry, job title and more. We'll even give you a $100 credit.

Clark Howard (0:37)

On your next campaign.

LinkedIn Ads (0:38)

Get started today at LinkedIn.com results. Terms and conditions apply.

Clark Howard (0:49)

It's great to have you here on the Clark Howard Show. You know our mission is all about you being empowered with knowledge so you make better financial decisions in your life. Today. How are you and I dealing with the cost of goods being so much higher? We are really changing. We're changing how, when and where we shop and it works. Also, I want to share something with you about scams later in this podcast. So you and I are behaving more like people elsewhere in the world. The United States has historically been the only developed market where people bought overwhelmingly brand name goods, but hit us in the head over and over again with costs going up. And what are we doing? Americans are now doing the rational thing. We're buying store brands, we're buying generics. We're changing where we shop. In fact, the brand name goods manufacturers had been playing a game on us, shrinking their packages. What became known during COVID is shrinkflation. So the bag might have been the same size bag but there was less stuff in it or the can had less in it, or the container had less or it shrunk. So there's a candy I like called Hot Tamales. Hot Tamales used to come, you know, in the theater size box they're sold came as a six ounce box, then it became a 5.5, then became a 5. Now what is this 4.5 ounces? Shrinking, shrinking, shrinking. Did the price go down? No, the price went up. If you buy it at $25 tree and from a dollar to $25 and so much less in it. But there are things we can do. First of all, shopping at $25 Tree is way up. Shopping at Dollar General way up. People of all income levels are changing where they shop to save money. They're changing what they buy. In fact, the brand name product manufacturers are scared so much so Aldi is being sued saying that their packaging of a lot of things looks Too much like the brand name. As a regular Aldi shopper, I was looking at some of these packages they're getting sued for and I actually don't see it. I don't see them confusing anybody. But it shows you how the brand name product manufacturers are seeing a decline in and customer purchasing and they're trying to do something about it by trying to beat the better competitor in court when they can't beat them in the court of public opinion, which is where you and I spend our money. So brand names cost more. Why? Because they're better sometimes. But that's not why they cost more. There's a lot of expense involved in packaging and marketing and advertising that you don't have with the store brands. Store brands when they started were selling inferior goods. That's not the way the game is played anymore because there's too much incentive for retailers to make sure the quality is good of the store brand because they make more margin, they make a higher markup on the store brand than they do on the brand name products that they sell side by side even though you're getting a lower price. So the market's moving, people are changing what they're doing. So much so that Barron's, which has one of the wealthiest readerships of any publication or website in the United States, Barron's wrote an article about how their readers are now shopping at places like Dollar Tree. And that is a shift in the marketplace. So what do their wealthy readers know that you should know? That's that they're getting more value for every dollar. Buying the brands that are not the normal brands, buying the store brands. I mean you go into Dollar Tree and you see the brands, mostly they're make believe brands. They're like made up brand names. They're just store brands, they're just cheaper and I like that.

Summary

The Clark Howard Podcast – Episode Summary

Episode: July 28, 2025
Title: Inflation & Retail Adaptation / Everyday Is Scam Awareness Day
Host: Clark Howard

1. Navigating Rising Costs and Shifting Shopping Habits

Key Points:

Shift to Store Brands and Generics: Historically, U.S. consumers preferred brand-name products, but rising costs have pushed them towards more affordable store brands and generics.
Changing Retail Preferences: Retailers like Dollar General and Aldi are gaining traction as consumers seek cost-effective alternatives.
Shrinkflation Concerns: Clark explains the phenomenon of shrinkflation, where product sizes decrease while prices remain the same or increase. For example, “Hot Tamales used to come ... now what is this 4.5 ounces?” ([02:10]).

Notable Quote:

"Brand names cost more. Why? Because they're better sometimes. But that's not why they cost more. There's a lot of expense involved in packaging and marketing and advertising that you don't have with the store brands." – Clark Howard ([04:30])

2. Listener Questions and Expert Advice

Advice Given:

529 Plan Utilization: Clark recommends continuing with the 529 plan for its tax-free growth, suggesting an age-based portfolio to ensure conservative investment until college.
Future Flexibility: He mentions the possibility of converting unused funds into a Roth IRA if they are not needed for education ([07:38]).

b. Handling Subscription Scams ([08:04]–[09:05]): Danisha from Kentucky shares her frustrating experience with a meal kit subscription that auto-renewed despite her attempts to cancel.

Clark's Response:

Effective Use of the Better Business Bureau (BBB): Clark commends Danisha for leveraging the BBB to resolve the issue, emphasizing that it works well with legitimate companies engaged in questionable practices ([09:05]).

Advice Provided:

Alternative Ownership Structures: Clark suggests naming a successor owner in the 529 plan, typically the parent, to ensure future access and flexibility.
Direct Funding: He also recommends allowing the son to own the 529 plan directly, simplifying the process ([10:12]).

3. Everyday Is Scam Awareness Day

Clark dedicates a significant portion of the episode to raising awareness about the pervasive nature of scams, highlighting that 96% of Americans encounter scam attempts weekly ([14:34]).

Key Points:

Common Scams Discussed:
- Obituary Pirates: Scammers posing as funeral home representatives to exploit grieving individuals ([15:30]).
- Student Loan Scams: Increased targeting following new legislation affecting student loans.
- Storm and Cloud Storage Alerts: Fake warnings prompting unnecessary actions or purchases.
- Unsubscribe Scams: Risks associated with clicking unsubscribe links that may compromise personal information.
Scam Psychology: Most scams exploit greed, fear, or urgency, compelling victims to act without critical thinking.

Notable Quote:

"I don’t want you to be a cynic. I want you to be a skeptic." – Clark Howard ([18:00])

4. Additional Listener Interactions

a. Life Insurance and Weight Loss Impact ([18:58]–[21:47]): Kate from Florida inquires about the benefits of obtaining new life insurance quotes after losing significant weight.

Clark's Guidance:

Timing for New Quotes: Advises waiting until achieving a normal BMI before seeking new quotes to potentially secure lower premiums.
Policy Adjustment Options: Suggests considering shorter-term policies and exploring options to convert or replace existing policies once weight loss is achieved ([20:15]).

b. Necessity of Checkbooks in a Digital Age ([21:47]–[23:42]): Matthew from Texas contemplates whether to discontinue using paper checks due to their infrequent use.

Advice Provided:

Starter Checkbooks: Recommends obtaining a courtesy starter book of checks from the credit union.
Alternative Payment Methods: Highlights the dangers and obsolescence of checks, advocating for digital payments whenever possible ([22:21]).

c. Unauthorized Apple Pay Transactions ([23:42]–[24:25]): A caller shares an incident where an unauthorized charge appeared on their Apple Pay after declining a receipt.

Clark's Response:

Importance of Alerts: Stresses the significance of setting up text alerts for all transactions to quickly identify and address unauthorized activities.
Immediate Action: Encourages monitoring digital payment platforms closely to prevent prolonged unauthorized charges ([24:25]).

5. Conclusion and Resources

Key Takeaways:

Adapt Shopping Habits: Embrace store brands and generics to mitigate the effects of inflation and rising costs.
Stay Informed on Scams: Maintain skepticism and utilize resources like the BBB to safeguard against fraudulent schemes.
Optimize Financial Planning: Use tools like 529 plans effectively and reassess financial products as personal circumstances change.
Embrace Digital Security: Leverage digital payment alerts and minimize reliance on obsolete systems like paper checks.

By addressing current economic challenges and providing actionable advice, Clark Howard empowers listeners to make informed decisions, save money, and navigate the complexities of modern consumerism.