1 00:00:00,080 --> 00:00:03,320 Speaker 1: Joel Larsguard every Sunday from twelve to two pm has 2 00:00:03,360 --> 00:00:07,160 Speaker 1: heard right here on KFI how to Money. His social 3 00:00:07,160 --> 00:00:11,360 Speaker 1: address at how to money Joel. His website is howtomoney 4 00:00:11,480 --> 00:00:12,200 Speaker 1: dot com. 5 00:00:12,200 --> 00:00:15,640 Speaker 2: Good morning Joel, Good morning bill Ah. 6 00:00:15,760 --> 00:00:17,440 Speaker 3: Now I have a question. 7 00:00:17,480 --> 00:00:19,840 Speaker 1: I want to throw something at you, and that is 8 00:00:20,560 --> 00:00:25,759 Speaker 1: how cash is a joke. I have one checkbook one 9 00:00:27,040 --> 00:00:32,560 Speaker 1: and when I first started, actually up until I met 10 00:00:32,600 --> 00:00:35,160 Speaker 1: my current wife, she's number four, number five. 11 00:00:35,360 --> 00:00:35,720 Speaker 2: Is that it? 12 00:00:35,840 --> 00:00:37,360 Speaker 3: I feel like the Big lou commercial. 13 00:00:38,600 --> 00:00:43,440 Speaker 1: Anyway, she she started laughing at me for writing checks, 14 00:00:44,320 --> 00:00:47,160 Speaker 1: and I still think of checks, but then I'm a dinosaur. 15 00:00:47,360 --> 00:00:51,239 Speaker 1: I'm getting better at it. Where today, of course, particularly 16 00:00:51,240 --> 00:00:54,960 Speaker 1: a gen Z, do they even know what cash is? 17 00:00:55,800 --> 00:00:58,200 Speaker 4: Well, they know what cash is, but they treat it 18 00:00:58,480 --> 00:01:01,520 Speaker 4: like it's got no value at all, And you know, 19 00:01:01,600 --> 00:01:05,839 Speaker 4: it's It's interesting because this was the problem with credit 20 00:01:05,840 --> 00:01:08,760 Speaker 4: cards a decade ago in particular, but still is with 21 00:01:08,800 --> 00:01:12,200 Speaker 4: a lot of people who treat using plastic right, oh, 22 00:01:12,280 --> 00:01:15,600 Speaker 4: tap to pay. I've got my auto fill of my 23 00:01:15,720 --> 00:01:20,520 Speaker 4: credit card payment information on my favorite retail websites, and 24 00:01:20,560 --> 00:01:23,959 Speaker 4: people use tend to use credit cards and they don't 25 00:01:23,959 --> 00:01:25,920 Speaker 4: know what they're spending they're not keeping track, and so 26 00:01:26,120 --> 00:01:28,520 Speaker 4: credit cards were the slippery slope, or have been for 27 00:01:28,600 --> 00:01:32,399 Speaker 4: previous generations, but for gen Z, cash is kind of 28 00:01:32,440 --> 00:01:33,440 Speaker 4: the slippery slope. 29 00:01:33,440 --> 00:01:36,560 Speaker 2: Like they're used to everything being digital and maybe they. 30 00:01:36,440 --> 00:01:39,200 Speaker 4: Have like a you need a budget why NAB account, 31 00:01:39,319 --> 00:01:41,399 Speaker 4: or they have a monarch money account or something like. 32 00:01:41,360 --> 00:01:44,360 Speaker 2: That, and so all of their spending is done. 33 00:01:44,160 --> 00:01:46,640 Speaker 4: From a digital thing, whether it's from one of their 34 00:01:46,640 --> 00:01:48,920 Speaker 4: payment apps or a credit card or a debit card. 35 00:01:49,320 --> 00:01:53,400 Speaker 4: Everything lives and filters into that website. So it's easy 36 00:01:53,400 --> 00:01:54,960 Speaker 4: for them to go in and look at their dashboard 37 00:01:54,960 --> 00:01:56,360 Speaker 4: and say, well, what did I spend here or there? 38 00:01:56,560 --> 00:01:58,960 Speaker 4: But if they if they get randomly one hundred bucks 39 00:01:59,000 --> 00:02:01,400 Speaker 4: or two hundred bucks or something like that dropped into 40 00:02:01,440 --> 00:02:05,760 Speaker 4: their life, that's cash. They're like, well, this doesn't compute 41 00:02:05,800 --> 00:02:08,240 Speaker 4: with my digital system that everything's set up on, and 42 00:02:08,280 --> 00:02:11,160 Speaker 4: so they treat it like it's absolutely They just like, go, 43 00:02:11,200 --> 00:02:11,680 Speaker 4: wasit it on? 44 00:02:11,720 --> 00:02:12,080 Speaker 2: Stuff? 45 00:02:12,360 --> 00:02:15,360 Speaker 4: And so it's just really interesting to see kind of 46 00:02:15,400 --> 00:02:18,360 Speaker 4: generational differences in how we think about different types of money. 47 00:02:18,639 --> 00:02:20,960 Speaker 1: Yeah, Goo, you can figure out what you spend on 48 00:02:21,280 --> 00:02:24,120 Speaker 1: a credit card in three seconds. Cash you have to 49 00:02:24,120 --> 00:02:25,680 Speaker 1: bring the receipt and you have to look at it 50 00:02:25,720 --> 00:02:26,520 Speaker 1: and compile it. 51 00:02:27,000 --> 00:02:32,680 Speaker 3: Also, now the tap to pay or even using your phone. 52 00:02:34,120 --> 00:02:36,560 Speaker 1: Usually anything under ten bucks, I reach in my pocket 53 00:02:36,600 --> 00:02:38,600 Speaker 1: and take out cash, and I pay. 54 00:02:38,480 --> 00:02:40,520 Speaker 3: For it and then I wait for the change. 55 00:02:40,960 --> 00:02:42,960 Speaker 1: Now, if it's three bucks, I'll still to just take 56 00:02:43,000 --> 00:02:45,600 Speaker 1: out my credit card, only because it's so. 57 00:02:45,680 --> 00:02:47,880 Speaker 3: Much easier than actually dealing with money. 58 00:02:48,840 --> 00:02:53,200 Speaker 1: And that's not even generational, it's just it's easier. 59 00:02:53,880 --> 00:02:56,840 Speaker 4: I mean, I don't like change clinking around in my pocket, 60 00:02:57,000 --> 00:02:59,720 Speaker 4: and so that's one of the Like my dad used 61 00:02:59,720 --> 00:03:02,880 Speaker 4: to always have a pocket full of change, and I'm 62 00:03:02,919 --> 00:03:05,040 Speaker 4: like the complete opposite. I'm like, if I have cash, 63 00:03:05,080 --> 00:03:07,320 Speaker 4: or if I have like pennies and pennies going the 64 00:03:07,320 --> 00:03:09,240 Speaker 4: way of the Dodo bird, but if any of those 65 00:03:09,320 --> 00:03:11,200 Speaker 4: coins jingle around my pocket, I gotta get them out. 66 00:03:11,240 --> 00:03:13,119 Speaker 2: I'm just like, oh, it's so annoying. And so yeah, 67 00:03:13,320 --> 00:03:14,000 Speaker 2: I'm the same way. 68 00:03:14,080 --> 00:03:18,640 Speaker 4: Like even with with small, small purchases, I'm typically using 69 00:03:19,000 --> 00:03:22,320 Speaker 4: my credit card, and if you use your credit card responsibly, 70 00:03:22,360 --> 00:03:25,280 Speaker 4: I'm a big fan of people using credit cards as 71 00:03:25,320 --> 00:03:28,160 Speaker 4: a method of payment. I guess what I want to 72 00:03:28,200 --> 00:03:30,160 Speaker 4: stress to gen zers or to people who feel like 73 00:03:30,240 --> 00:03:32,360 Speaker 4: cash is becoming this thing where it just slips right 74 00:03:32,440 --> 00:03:34,880 Speaker 4: out of their hands when it comes in one it's 75 00:03:34,880 --> 00:03:36,880 Speaker 4: okay to splurge, like when you get cash, right, So 76 00:03:36,920 --> 00:03:40,280 Speaker 4: let's say you get birthday holiday money something like that. Yeah, 77 00:03:40,280 --> 00:03:44,160 Speaker 4: it's it's totally fine to spend that money on something 78 00:03:44,280 --> 00:03:47,920 Speaker 4: that you might not have otherwise allocated it for. But 79 00:03:48,520 --> 00:03:51,840 Speaker 4: I also love the idea of people having an envelope 80 00:03:51,960 --> 00:03:54,160 Speaker 4: and so when they get cash, maybe instead of just 81 00:03:54,280 --> 00:03:57,960 Speaker 4: frittering that money away, they have a bigger thing that 82 00:03:58,000 --> 00:04:02,080 Speaker 4: they're saving for, whether it's like vacation or a down 83 00:04:02,160 --> 00:04:04,560 Speaker 4: payment for a home. Think about even just those jar 84 00:04:05,400 --> 00:04:07,960 Speaker 4: I'm sure you knew people, Bill who had a big 85 00:04:08,080 --> 00:04:09,240 Speaker 4: jar of coin. 86 00:04:09,320 --> 00:04:14,400 Speaker 1: It's me. You save up and you go to one 87 00:04:14,400 --> 00:04:17,039 Speaker 1: of those cash machines at the supermarket, you throw it 88 00:04:17,080 --> 00:04:20,640 Speaker 1: all in there. The coin machines they grab fifteen percent 89 00:04:20,720 --> 00:04:23,279 Speaker 1: or eighteen percent. You walk out with in some cases, 90 00:04:23,320 --> 00:04:26,000 Speaker 1: in my case, it was hundreds of dollars. But that 91 00:04:26,080 --> 00:04:29,360 Speaker 1: took Yeah, it took free. What is it took forever 92 00:04:29,400 --> 00:04:31,640 Speaker 1: to say that? By the way, the point of having 93 00:04:31,720 --> 00:04:35,680 Speaker 1: a change in your pocket. I enjoy having change in 94 00:04:35,720 --> 00:04:38,600 Speaker 1: my pocket, and a fair amount because here's what happens. 95 00:04:39,160 --> 00:04:41,400 Speaker 1: I'll be walking down the street and there'll be some 96 00:04:41,560 --> 00:04:44,960 Speaker 1: homeless guy sitting there and say, hey, mister, do you 97 00:04:45,000 --> 00:04:45,919 Speaker 1: have any change? 98 00:04:46,400 --> 00:04:48,880 Speaker 3: Well, I reach in my pocket, I jingle. 99 00:04:48,640 --> 00:04:51,240 Speaker 1: All the money so you can hear it, and I say, why, 100 00:04:51,279 --> 00:04:53,280 Speaker 1: yes I do, and I just keep on walking. 101 00:04:54,040 --> 00:04:57,040 Speaker 3: The entertainment value of doing that is very high. 102 00:04:58,040 --> 00:04:58,479 Speaker 2: All right. 103 00:04:58,640 --> 00:05:00,400 Speaker 4: Yeah, I guess if that's what you're in too, If 104 00:05:00,400 --> 00:05:02,599 Speaker 4: that's it makes you smile, yeah, it does. 105 00:05:02,520 --> 00:05:04,920 Speaker 3: Makes me smile a big time, all right, Joel. 106 00:05:05,320 --> 00:05:10,000 Speaker 1: Instacart with algorithmic pricing, is that dynamic pricing. 107 00:05:10,839 --> 00:05:14,960 Speaker 4: It's not just dynamic because that's already been happening, right, 108 00:05:15,000 --> 00:05:18,240 Speaker 4: and that's happening all across the internet. And we're talking 109 00:05:18,240 --> 00:05:20,320 Speaker 4: about Yeah, you log in the morning to look for 110 00:05:20,360 --> 00:05:22,080 Speaker 4: a flight, it's one price you No. 111 00:05:22,160 --> 00:05:25,440 Speaker 3: I understand that. But this is instacart. This is going 112 00:05:25,440 --> 00:05:27,640 Speaker 3: to the supermarket. 113 00:05:27,120 --> 00:05:29,799 Speaker 2: That's right. So this is this is different. This is less. 114 00:05:29,839 --> 00:05:32,960 Speaker 4: Hey, prices are changing based on the price we pay, 115 00:05:33,000 --> 00:05:35,960 Speaker 4: and it's more, prices are changing based on who you 116 00:05:36,040 --> 00:05:41,360 Speaker 4: are and where you're buying from, and it's seemingly random. 117 00:05:41,600 --> 00:05:42,360 Speaker 2: Uh in. 118 00:05:42,600 --> 00:05:44,960 Speaker 4: So there was this test done by Consumer Reports. It 119 00:05:45,000 --> 00:05:48,560 Speaker 4: consumer Reports is one of the stalwarts in the you know, 120 00:05:48,640 --> 00:05:51,880 Speaker 4: in the in the business of looking out for consumers. 121 00:05:51,920 --> 00:05:54,320 Speaker 4: They do an amazing job on so many different fronts. 122 00:05:54,560 --> 00:05:57,880 Speaker 4: They partnered with this company called Groundwork Collective to look 123 00:05:57,920 --> 00:06:01,719 Speaker 4: into what's going on with instacart pricing, and basically, it's 124 00:06:01,760 --> 00:06:04,160 Speaker 4: not just that the prices are dynamic, it's that are 125 00:06:04,200 --> 00:06:08,320 Speaker 4: seemingly random and so even when like twenty different shoppers 126 00:06:08,680 --> 00:06:11,360 Speaker 4: at the very very same time are adding a specific 127 00:06:11,360 --> 00:06:13,760 Speaker 4: item to their cart. Let's say something as basic as eggs, 128 00:06:14,080 --> 00:06:16,600 Speaker 4: one person might be paying four dollars for a dozen, 129 00:06:16,640 --> 00:06:19,119 Speaker 4: the other might be paying close to five dollars a dozen, 130 00:06:19,600 --> 00:06:23,040 Speaker 4: and Instacart's kind of like cut with their pants down here. 131 00:06:23,120 --> 00:06:24,280 Speaker 2: They don't really know what to say. 132 00:06:26,600 --> 00:06:30,559 Speaker 1: I find insacart fascinating. I really do, for a couple 133 00:06:30,560 --> 00:06:34,760 Speaker 1: of reasons. One it is, on the one hand, it 134 00:06:34,839 --> 00:06:37,080 Speaker 1: is the easiest way of shopping. You literally go and 135 00:06:37,120 --> 00:06:39,440 Speaker 1: do a cart, and you actually save money because you're 136 00:06:39,440 --> 00:06:41,919 Speaker 1: not at the market if you're hungry. Particularly, you should 137 00:06:41,920 --> 00:06:46,440 Speaker 1: see the stuff that I throw into the into the 138 00:06:47,880 --> 00:06:54,479 Speaker 1: into the shopping cart. So instacart is easy. Except have 139 00:06:54,560 --> 00:06:56,400 Speaker 1: you ever do you use instacart at all? 140 00:06:57,080 --> 00:06:57,680 Speaker 2: So I do. 141 00:06:57,720 --> 00:06:59,719 Speaker 4: And I've really come around on this because I agree 142 00:06:59,800 --> 00:07:03,480 Speaker 4: I think in so many ways what happens, especially like Bill, 143 00:07:03,520 --> 00:07:05,680 Speaker 4: I know your fondness for Costco. When you go to Costco, 144 00:07:06,120 --> 00:07:09,440 Speaker 4: like there's something about you don't stick to the list right, 145 00:07:09,480 --> 00:07:11,000 Speaker 4: because no, I do not. 146 00:07:11,360 --> 00:07:14,480 Speaker 2: I buy a treasure there if you can. 147 00:07:14,600 --> 00:07:18,600 Speaker 1: I have a freezer in my garage that is my 148 00:07:19,000 --> 00:07:20,360 Speaker 1: Costco freezer. 149 00:07:21,800 --> 00:07:23,040 Speaker 3: Also Smart and Final. 150 00:07:23,280 --> 00:07:25,520 Speaker 1: I sort of you know, I hate to say it, 151 00:07:25,520 --> 00:07:27,640 Speaker 1: but I also shop a Smart and Final. 152 00:07:28,040 --> 00:07:32,080 Speaker 3: It is filled with my crap killed. I'm not kidding you. 153 00:07:32,080 --> 00:07:35,200 Speaker 1: A full freezer that's top to bottom jammed inner looks 154 00:07:35,280 --> 00:07:38,280 Speaker 1: like a display case at Costco. 155 00:07:38,880 --> 00:07:40,480 Speaker 3: And it's only because I shop there. 156 00:07:40,600 --> 00:07:44,080 Speaker 1: But here's the other thing with instacart is you also 157 00:07:44,240 --> 00:07:50,960 Speaker 1: shop for produce and they don't pick and squeeze the 158 00:07:51,000 --> 00:07:57,360 Speaker 1: tomatoes and actually squeeze the avocados to get the perfect rightness. 159 00:07:57,440 --> 00:08:01,080 Speaker 1: That that is the problem yet with produce, if you notice, Yeah, 160 00:08:01,080 --> 00:08:01,440 Speaker 1: for sure. 161 00:08:01,440 --> 00:08:03,800 Speaker 4: I mean like when my wife or like she eats 162 00:08:03,800 --> 00:08:06,840 Speaker 4: spinach like it's her job, and when when the spinach 163 00:08:06,880 --> 00:08:09,480 Speaker 4: comes it like expires the next day sometimes and I'm like, 164 00:08:09,520 --> 00:08:11,520 Speaker 4: you didn't look in the back, like you didn't rifle 165 00:08:11,560 --> 00:08:14,720 Speaker 4: through the spinach to find the furthest out expiration date, 166 00:08:14,760 --> 00:08:17,480 Speaker 4: and that's one of my frustrations. But I will say, yeah, 167 00:08:17,480 --> 00:08:20,160 Speaker 4: it saves time, and I think in some ways it 168 00:08:20,240 --> 00:08:23,280 Speaker 4: can save money, like if you're really diligent and you're shopping. 169 00:08:23,640 --> 00:08:26,360 Speaker 4: And I also I keep my eye out for discounted 170 00:08:26,360 --> 00:08:29,160 Speaker 4: Instacart gift cards, which just helps bring that price down 171 00:08:29,200 --> 00:08:31,960 Speaker 4: a little bit. But I think what this reveals one 172 00:08:32,160 --> 00:08:35,120 Speaker 4: is just kind of that Instacart is like they're testing 173 00:08:35,160 --> 00:08:37,160 Speaker 4: some things out here, and they're testing to see how 174 00:08:37,240 --> 00:08:40,440 Speaker 4: much people are willing to pay and how price conscious 175 00:08:40,440 --> 00:08:42,400 Speaker 4: people are. And I think if you were to do 176 00:08:42,440 --> 00:08:46,079 Speaker 4: a poll, the average instacart user is less price conscious 177 00:08:46,320 --> 00:08:48,160 Speaker 4: than the person who's going out in the making for 178 00:08:48,240 --> 00:08:48,680 Speaker 4: every week. 179 00:08:48,800 --> 00:08:49,000 Speaker 1: Right. 180 00:08:49,040 --> 00:08:50,000 Speaker 3: That's the convenience. 181 00:08:50,200 --> 00:08:54,160 Speaker 1: Hey, In terms of dynamic pricing, has it reached supermarkets? 182 00:08:54,600 --> 00:08:57,560 Speaker 1: I'm thinking, let's say eggs, which used to be fourteen 183 00:08:57,679 --> 00:09:00,520 Speaker 1: fifteen dollars a dozen if you bought the fan, if 184 00:09:00,520 --> 00:09:04,800 Speaker 1: you bought the fancy schmancy you know, brown eggs, organic stuff, 185 00:09:05,480 --> 00:09:08,120 Speaker 1: you know, grain feed or whatever the hell they do 186 00:09:08,200 --> 00:09:14,160 Speaker 1: with chickens and expensive eggs. But as the inventory goes down, 187 00:09:14,559 --> 00:09:16,480 Speaker 1: you would think the price would go up. 188 00:09:17,040 --> 00:09:18,559 Speaker 3: Have they reached that point? 189 00:09:18,840 --> 00:09:22,160 Speaker 4: So we are seeing more supermarkets put in like digital 190 00:09:22,280 --> 00:09:26,480 Speaker 4: displayed readers, But most of the supermarkets are saying that 191 00:09:26,520 --> 00:09:28,160 Speaker 4: the reason for that is not so that they can 192 00:09:28,200 --> 00:09:31,000 Speaker 4: institute dynamic pricing. It's just so that it will be 193 00:09:31,080 --> 00:09:33,960 Speaker 4: less labor intensive to change the price labels. And especially 194 00:09:34,000 --> 00:09:36,480 Speaker 4: when prices are going up more regularly and you have 195 00:09:36,520 --> 00:09:40,520 Speaker 4: to change the pricing labels more frequently, I get that 196 00:09:40,559 --> 00:09:44,000 Speaker 4: it makes sense, and I think people still have like 197 00:09:44,160 --> 00:09:49,000 Speaker 4: a backlash against prices going up. Like you remember when 198 00:09:49,040 --> 00:09:51,760 Speaker 4: Wendy said, hey, we're thinking about charging more during lunch 199 00:09:52,120 --> 00:09:54,680 Speaker 4: and maybe less during Some of the people were so 200 00:09:54,880 --> 00:09:57,520 Speaker 4: upset about that, and when Wendy's had to change on 201 00:09:57,600 --> 00:10:01,360 Speaker 4: a dime. So especially, I think for every day necessities, 202 00:10:01,760 --> 00:10:06,720 Speaker 4: people are revolting a little bit more when when they're 203 00:10:06,720 --> 00:10:08,080 Speaker 4: being told they're gonna have to pay more if they 204 00:10:08,080 --> 00:10:09,240 Speaker 4: come at the wrong time of day. 205 00:10:09,600 --> 00:10:10,600 Speaker 2: But this is instant. 206 00:10:10,880 --> 00:10:13,800 Speaker 4: I think with instacart, you're going to see because people 207 00:10:13,920 --> 00:10:16,760 Speaker 4: using it are less price conscious, you might see some 208 00:10:16,840 --> 00:10:20,120 Speaker 4: of that shifting upward of prices and they might see, oh, 209 00:10:20,160 --> 00:10:24,920 Speaker 4: you know what, Bill in California is well, you know, 210 00:10:25,080 --> 00:10:26,679 Speaker 4: he doesn't care if the eggs are three ninety nine 211 00:10:26,720 --> 00:10:28,320 Speaker 4: or four sixty nine, So we're going to keep pushing 212 00:10:28,360 --> 00:10:31,040 Speaker 4: up prices on him. But somebody else might abandon some 213 00:10:31,120 --> 00:10:32,640 Speaker 4: of the items in their card or start using this 214 00:10:32,720 --> 00:10:34,920 Speaker 4: tide less and then they might start trying to pull 215 00:10:34,960 --> 00:10:37,400 Speaker 4: you back in with discounts and coupons like it's just 216 00:10:37,480 --> 00:10:40,079 Speaker 4: one of those buyer beware things in the modern age 217 00:10:40,280 --> 00:10:42,480 Speaker 4: of internet grocery shopping. 218 00:10:43,000 --> 00:10:46,160 Speaker 1: All right, Joel will catch you this Sunday at twelve 219 00:10:46,200 --> 00:10:49,400 Speaker 1: to two pm, and we can reach you at at 220 00:10:49,480 --> 00:10:51,959 Speaker 1: how to Money Joel, And then the website is howdomoney 221 00:10:51,960 --> 00:10:52,560 Speaker 1: dot com.