The Clark Howard Podcast

Episode: 08.25.25 – Controlled Spending Method / Travel Warning: Pickpocket Rings
Date: August 25, 2025
Host: Clark Howard, with Krista

Episode Overview

In this episode, Clark Howard focuses on practical strategies for controlling spending—introducing a simple “traffic light” method to help listeners decide between needs and wants. Clark and Krista also discuss key personal finance questions from listeners, including estate planning, freezing credit, and the intricacies of changing airline tickets. The episode concludes with a crucial warning about sophisticated pickpocket rings increasingly targeting travelers using ATMs and payment cards, especially abroad.

Key Discussion Points and Insights

1. Controlled Spending: The “Traffic Light” Method

• Clark introduces an updated approach to controlling spending using a green-yellow-red light framework.

  • Green light: Genuine necessities (rent, utilities, basic transportation).
  • Yellow light: Expenses you may need but often overpay for (cell phone plans, subscriptions). Opportunity to “shave” costs.
  • Red light: Wants or luxuries, especially if you’re financially stressed (i.e., Starbucks, bubble tea, unnecessary tech upgrades).

  “If you're having trouble paying your bills at all and you're running balances on credit cards, Starbucks or anything like that, that is full red light territory.” (Clark, 06:50)

• Clark emphasizes adapting the categories based on your own financial situation—the red/yellow/green assignments aren’t fixed.

• Memorable analogy: Clark compares this method to processing a stoplight in your head when considering each purchase.

  “Try this. Because I've been noodling this in my head... How do I get in everyday life? Get into your brain and get you thinking about how am I going to get this spending under control?” (Clark, 07:40)

2. Listener Stories and Spending Habits

• Krista shares her experience with a “financial fast” (08:10), especially after overspending on vacation, focusing on cutting dining out but keeping essentials like her gym membership.

• Clark’s shoe shopping strategy: Clark buys high-quality shoes (Hokas) only when on clearance, even if the color is odd, after failed attempts to go for cheaper substitutes.

  “I'm just going to keep wearing ugly colors when they go on clearance or they discontinue a model and they're getting rid of the old one.” (Clark, 10:08)

3. Digital Financial Security

• Venmo and Plaid’s Deep Data Access (10:54):

  • Listener Rod from Colorado reports that Plaid (the intermediary) requires access to all bank accounts at a connected institution, making Plaid’s permission levels a “gross overreach.”

  “A gross overreach for simply creating a connection with a single checking account...” (Rod, quoted by Krista, 10:54)

  • Clark recommends setting up a separate bank account for Venmo/Cash App use to mitigate risks:

  “You have money in it just to cover the amount of transactions you're doing...then the fact that they may validate through Plaid should not be of harm to you.” (Clark, 11:45)

• Electronic Wills and Estate Planning (12:55):

  • Listener Michelle (Missouri) asks about the new legal acceptance of electronic wills.
  • Clark: Electronic wills are fine for simple estates, but complex assets or family situations warrant a professional attorney. States are slowly catching up with digital options.

  “If you have minor children but you don't have assets, you need a will. Because if you don't...the state will decide who raises your children, not your wishes.” (Clark, 14:42)

• Credit Freezes and Managing Thaws (15:37):

  • Listener Jennifer (Connecticut) notes you can ask which credit bureau a company will use before thawing files.
  • Clark: Credit bureaus don’t make temporary thaws easy, but it’s worth the hassle to remain secure.

  “I've noticed that they...had a big button to permanently remove the freeze. But I had to go hunt to find out how to do a temporary thaw. And that's just uncool.” (Clark, 16:31)

4. Travel Warning: Pickpocket Rings Targeting Payment Cards

• Travel Abroad and ATM Card Safety (19:33):

  • With Americans more likely to use ATMs when traveling, criminals are using pickpocket rings to steal both cards and PINs—sometimes with binoculars—to empty accounts before victims can respond.

  • Banks now often treat customers as “guilty until proven innocent” if stolen cards plus PINs are used for fraudulent withdrawals, with a specific call-out to Citibank’s policy following a New York Times investigation.

  “You cover with one hand while you type in your pin with the other hand so that you do not become a useful target for the pickpocket rings.” (Clark, 22:21)

  • Key tip: Always shield your PIN entry with your hand both at ATMs and payment terminals abroad.

  “I don't want to make you paranoid. I want to make you prepared and know that this has been low hanging fruit.” (Clark, 23:25)

5. Airline Ticket Price Drops and Change Policies

• Changing to a Lower Fare—Delta’s Hoops (24:02):

  • Listener Doug (Georgia) discovers Delta makes it hard to get a lower fare credit when the same ticket class drops in price; requires calls and sometimes receives “one-time exceptions.”
  • Clark’s workaround: If you see a lower fare, try canceling and rebooking your ticket using the credit (if possible).

  “That’s just not the way you treat people.” (Clark, 24:55)

• Travel Agent Fare Classes & Protections (26:11):

  • Listener Michael finds higher fares from a travel agent for supposed “better protections” but less flexibility.
  • Clark skeptical, explaining that in most cases credits are available for fare drops except with basic economy, and he questions the travel agent’s logic.

  “That makes no sense to me whatsoever.” (Clark, 26:45)

• Delta’s Fare Class Experimentation and AI Pricing (28:21):

  • Clark explains Delta is segmenting its fare classes further—even in business and first class—creating “basic” versions to maximize up-sells. Delta will use AI to set fares for up to 20% of its tickets by December.

  “Delta is breaking down every part of the cabin into multiple fare types... only time will tell on that.” (Clark, 29:17)

6. Packing Light for Extended Trips

• Packing Tips for Women (Listener Kathy, 30:45):

  • Audience interest in Lane’s (Clark’s wife) method for packing two weeks in a carry-on (especially with typical haircare needs, etc.).
  • Clark and Krista promise a video and mention packing cubes/compression packs, rolling clothes, and doing laundry during trips as key strategies.

  "We'll shoot a video for clark.com of Lane packing for a one to two week trip..." (Krista, 31:24) "There's all kinds of YouTube videos from people who show how they pack for a long trip in a carry on." (Clark, 32:13)

Notable Quotes & Memorable Moments

• On laissez-faire wants:

  “If you get down to the core of what this is... you spend your money only on what you must and anything else is a want to and you cut it out of your life.” (Clark, 03:16)

• On credit bureaus and freezes:

  “Credit bureaus hate credit freeze. And I've noticed that they... had it almost hidden for a temporary lift of a freeze, as they call it.” (Clark, 16:18)

• On travel pickpocket risks:

  “New York Times did a story recently about how the banks if somebody has your pen and your card gets stolen, the banks are treating you as the guilty party till proven innocent.” (Clark, 21:55)

Timestamps for Key Segments

• 00:41 — Opening and controlled spending theme introduction
• 03:16 — The move from "must pays vs wants" to a traffic light categorization for spending
• 08:10 — Krista shares her “financial fast” experience
• 09:00 — Clark on shopping for shoes and value-based spending decisions
• 10:54 — Listener concern about Plaid’s deep access with Venmo; Clark’s recommendations
• 12:55 — Digital wills and when to use an attorney
• 15:37 — Credit freeze tactics and thawing strategy
• 19:33 — Pickpocket rings and payment card security abroad
• 24:02 — Airline ticket price drop maneuvers and Delta’s restrictive policies
• 26:11 — Fare classes and travel agent justifications—Clark’s skepticism
• 28:21 — Delta’s segmentation of fare classes and use of AI for pricing
• 30:45 — Listener question about packing for long trips—promise of a tutorial video

Conclusion

Clark’s episode drives home the importance of visual, actionable methods for controlling spending, vigilance in both digital and physical personal finance security—especially while traveling—and skepticism against inflexible or confusing policies by banks, tech platforms, and airlines. The “traffic light” method is positioned as an accessible tool for listeners at any stage in their financial journey.

Clark signs off:

“It’s all about what we’re about, which is empowerment through knowledge so you can save more, spend less, and avoid getting ripped off.” (33:21)