1 00:00:00,120 --> 00:00:02,759 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:02,759 --> 00:00:06,400 Speaker 1: and today we're discussing price profiteering e s g b 3 00:00:06,760 --> 00:00:28,840 Speaker 1: S and second hand smarts E s g b S. 4 00:00:29,520 --> 00:00:31,560 Speaker 1: We're gonna get to that story, plus a bunch of 5 00:00:31,560 --> 00:00:34,240 Speaker 1: others today on our Friday flights. These are the headlines 6 00:00:34,280 --> 00:00:36,479 Speaker 1: that we've come across this week. But real quick, man, 7 00:00:36,960 --> 00:00:39,800 Speaker 1: I wanted to share, so listener. Benjamin he emailed into 8 00:00:39,880 --> 00:00:41,400 Speaker 1: us and he wanted to make sure that we knew 9 00:00:41,440 --> 00:00:44,600 Speaker 1: about the Capital One bonuses that have been rolling us, 10 00:00:44,880 --> 00:00:46,720 Speaker 1: not the red alert to everybody out there. He's like, hey, 11 00:00:46,760 --> 00:00:49,440 Speaker 1: if you if you're still banking with a crumby bank, 12 00:00:49,560 --> 00:00:51,920 Speaker 1: not only can you do business with someone who doesn't 13 00:00:51,960 --> 00:00:54,319 Speaker 1: hate you, but also there's a bonus at stake two. 14 00:00:54,560 --> 00:00:58,920 Speaker 1: Capital One they are a legitimate online savings account, checking account. 15 00:00:58,960 --> 00:01:00,480 Speaker 1: Total P likes to keep all of your They are 16 00:01:00,520 --> 00:01:02,720 Speaker 1: one of the O G good online bank accounts. Yeah, 17 00:01:02,720 --> 00:01:04,280 Speaker 1: what was it? The used to be I n G 18 00:01:04,440 --> 00:01:06,840 Speaker 1: Direct back in the day, and then I had that 19 00:01:06,920 --> 00:01:10,040 Speaker 1: same electric Orange chetric Orage, So I'm like grandfathered in man, 20 00:01:10,040 --> 00:01:11,600 Speaker 1: I've been there a long time. That was back when 21 00:01:11,640 --> 00:01:14,160 Speaker 1: they were paying like five percent on that Electric Orange 22 00:01:14,160 --> 00:01:17,280 Speaker 1: account back in two thousand and five. I think it was. 23 00:01:17,360 --> 00:01:19,840 Speaker 1: I think it was that long ago. It's crazy. If 24 00:01:19,880 --> 00:01:22,240 Speaker 1: only we had five get your faces on savings accounts, 25 00:01:22,240 --> 00:01:24,360 Speaker 1: I think those days are over. But it turns out 26 00:01:24,360 --> 00:01:26,400 Speaker 1: you can get a one hundred and fifty dollar bonus 27 00:01:26,560 --> 00:01:30,120 Speaker 1: if you deposit twenty dollars with Capital one and if 28 00:01:30,160 --> 00:01:32,000 Speaker 1: you have fifty thousand dollars sitting around. Turns out you 29 00:01:32,000 --> 00:01:35,160 Speaker 1: can get a four and fifty dollar bonus by making 30 00:01:35,280 --> 00:01:37,759 Speaker 1: that deposit and keeping that account open for I think 31 00:01:37,840 --> 00:01:40,200 Speaker 1: something like three months. The same thing with a checking account. 32 00:01:40,200 --> 00:01:42,559 Speaker 1: To right, you can get that's two d fifty bucks 33 00:01:42,640 --> 00:01:45,399 Speaker 1: just for opening a checking account doing two direct deposits. 34 00:01:45,400 --> 00:01:48,400 Speaker 1: Both of these deals and in mid to late June 35 00:01:48,800 --> 00:01:51,400 Speaker 1: will link to to them in the show notes. But yeah, 36 00:01:51,440 --> 00:01:54,040 Speaker 1: if you're if you're disappointed with your current bank or 37 00:01:54,080 --> 00:01:56,560 Speaker 1: with what you're making at your current bank, these are great. 38 00:01:56,880 --> 00:01:59,640 Speaker 1: I love not just the ability to matt earn just 39 00:01:59,760 --> 00:02:02,480 Speaker 1: a lightly higher rate of interest, but the bonuses. It's 40 00:02:02,520 --> 00:02:04,760 Speaker 1: like the it's like the whip cream on top and 41 00:02:04,880 --> 00:02:07,840 Speaker 1: cherry and like you knew you wanted it anyway, but 42 00:02:07,920 --> 00:02:09,960 Speaker 1: this just sweetens the deal even more for a lot 43 00:02:10,000 --> 00:02:11,760 Speaker 1: of people, it's like, Okay, that's gonna get me off 44 00:02:11,800 --> 00:02:14,040 Speaker 1: my stuff and make it happen. Yeah. Well, simultaneously, I 45 00:02:14,080 --> 00:02:15,960 Speaker 1: do think we are going to see more deals by 46 00:02:16,000 --> 00:02:18,000 Speaker 1: some of the different banks because I think the competition 47 00:02:18,040 --> 00:02:20,480 Speaker 1: has gotten a little more stiff as banks are saying 48 00:02:20,480 --> 00:02:22,320 Speaker 1: that folks have less less cash on hand. I mean, 49 00:02:22,360 --> 00:02:24,120 Speaker 1: we we can see, like you can if you check 50 00:02:24,160 --> 00:02:26,520 Speaker 1: with a FED that they've got an awesome chart where 51 00:02:26,560 --> 00:02:28,720 Speaker 1: it shows that the personal savings rate it's back down 52 00:02:28,720 --> 00:02:31,200 Speaker 1: to pre pandemic levels. We're back to the way things 53 00:02:31,240 --> 00:02:34,160 Speaker 1: where folks have less cash on hand. But there's no 54 00:02:34,240 --> 00:02:36,560 Speaker 1: guarantee that they're going to be upcoming bonuses, but I 55 00:02:36,600 --> 00:02:38,839 Speaker 1: wouldn't be surprised. Yeah, okay, Well, you know, we will 56 00:02:38,880 --> 00:02:42,200 Speaker 1: continue to put out information if we see good bonuses 57 00:02:42,240 --> 00:02:44,200 Speaker 1: for switching banks, and we'll also call him out in 58 00:02:44,200 --> 00:02:45,840 Speaker 1: our How the Money newsletter. By the way, you can 59 00:02:45,840 --> 00:02:48,400 Speaker 1: sign up at how the Money dot com slash newsletter. 60 00:02:48,560 --> 00:02:50,960 Speaker 1: But Matt, let's get to the Friday Fight, the sampling 61 00:02:50,960 --> 00:02:53,080 Speaker 1: of stories we found interesting this week and how they 62 00:02:53,120 --> 00:02:56,200 Speaker 1: pertain to your personal finances. And let's let's start off 63 00:02:56,240 --> 00:02:59,040 Speaker 1: by talking about something free that all of our listeners 64 00:02:59,120 --> 00:03:02,280 Speaker 1: qualify for and its one likes a freebie. That's right. 65 00:03:02,320 --> 00:03:04,680 Speaker 1: It's been a ministers we've talked about this, but COVID 66 00:03:04,760 --> 00:03:07,120 Speaker 1: cases are back up across the nation. We've seen a 67 00:03:07,160 --> 00:03:10,040 Speaker 1: sixty increase in the past two weeks alone, which is 68 00:03:10,080 --> 00:03:13,360 Speaker 1: obviously crappy news. But on the right side, everyone out 69 00:03:13,400 --> 00:03:16,880 Speaker 1: there can get more free at home COVID tests. So 70 00:03:17,040 --> 00:03:19,760 Speaker 1: just head to COVID tests dot gov and you can 71 00:03:19,800 --> 00:03:24,040 Speaker 1: snag eight free antigen rapid tests for home use. What 72 00:03:24,120 --> 00:03:25,920 Speaker 1: was it, Matt, We were able to get four a 73 00:03:25,960 --> 00:03:29,160 Speaker 1: few months ago. I don't keep track. Now you can 74 00:03:29,160 --> 00:03:32,480 Speaker 1: get eight and so yeah, just in case you want 75 00:03:32,520 --> 00:03:35,960 Speaker 1: to avoid paying fifty bucks at the store for a 76 00:03:36,000 --> 00:03:38,080 Speaker 1: couple of tests, you can get them for free from 77 00:03:38,080 --> 00:03:40,200 Speaker 1: the federal government. I think that's the federal government just saying, 78 00:03:40,240 --> 00:03:41,880 Speaker 1: how don't we don't want to keep these sitting around 79 00:03:41,880 --> 00:03:43,920 Speaker 1: and warehouses anymore. Let's just go ahead and send them 80 00:03:43,920 --> 00:03:47,880 Speaker 1: out so we don't have to sign another lease. All right, 81 00:03:47,920 --> 00:03:50,520 Speaker 1: let's keep moving our buddy five am Joel. He sent 82 00:03:50,600 --> 00:03:53,320 Speaker 1: us a recent survey from op you. They've got a 83 00:03:53,320 --> 00:03:56,400 Speaker 1: bunch of free resources and free little classes that they 84 00:03:56,440 --> 00:04:00,240 Speaker 1: offer online, but they found that seventy of folks don't 85 00:04:00,280 --> 00:04:03,160 Speaker 1: have a budget that they follow regularly, which is obviously 86 00:04:03,200 --> 00:04:06,680 Speaker 1: not good. Uh. Personally, I think everyone needs a budget, 87 00:04:06,680 --> 00:04:08,720 Speaker 1: regardless if you are on the frugal end of the 88 00:04:08,840 --> 00:04:11,400 Speaker 1: of the spectrum or if you're a spendthrift, right because 89 00:04:11,400 --> 00:04:13,800 Speaker 1: I think you need a budget for different reasons. Obviously, 90 00:04:13,800 --> 00:04:16,039 Speaker 1: if you are a spendthrift and you need you need 91 00:04:16,080 --> 00:04:18,760 Speaker 1: a budget to regulate your expenses because you're over spending 92 00:04:18,760 --> 00:04:20,839 Speaker 1: most likely. But even folks who are on the frugal 93 00:04:21,200 --> 00:04:22,880 Speaker 1: end of the spectrum, I think need to have a 94 00:04:22,920 --> 00:04:24,920 Speaker 1: budget on hand to make sure that they're spending their 95 00:04:24,960 --> 00:04:28,120 Speaker 1: dollars the way that they want to, the way that 96 00:04:28,160 --> 00:04:30,520 Speaker 1: they have decided. Makes them the happiest if they're not 97 00:04:30,600 --> 00:04:33,200 Speaker 1: freaking out every time they spend a dollar because they're like, oh, no, 98 00:04:33,279 --> 00:04:35,600 Speaker 1: I budget for that. It's okay, even and I know 99 00:04:35,920 --> 00:04:40,240 Speaker 1: that my incomes go into investments and savings, you know that. 100 00:04:40,279 --> 00:04:42,320 Speaker 1: I think the budget can release some stress, even for 101 00:04:42,320 --> 00:04:44,880 Speaker 1: frugal people. It puts on paper what you say that 102 00:04:44,920 --> 00:04:46,400 Speaker 1: you're going to do with your money, and it kind 103 00:04:46,440 --> 00:04:48,440 Speaker 1: of keeps your emotions in check. I think living life 104 00:04:48,440 --> 00:04:50,880 Speaker 1: without a budget sort of like like riding a motorcycle 105 00:04:51,000 --> 00:04:53,640 Speaker 1: without a helmet. It's incredibly risky, or it's it's like 106 00:04:53,839 --> 00:04:56,880 Speaker 1: running a football play without just winning. It's just like 107 00:04:56,880 --> 00:04:58,920 Speaker 1: everybody just run, let's see what happens. That's where you 108 00:04:58,920 --> 00:05:00,520 Speaker 1: get the flee flicker. I think I think that's where 109 00:05:00,520 --> 00:05:02,840 Speaker 1: that came from, exactly. But the longer that you go 110 00:05:03,040 --> 00:05:06,080 Speaker 1: without tracking your spending and and creating a budget that 111 00:05:06,120 --> 00:05:08,640 Speaker 1: you can actually stick to, the more likely you are 112 00:05:08,720 --> 00:05:11,280 Speaker 1: to spend money in ways that don't align with your values, 113 00:05:11,480 --> 00:05:13,160 Speaker 1: the more likely you are to take on debt, even 114 00:05:13,160 --> 00:05:15,640 Speaker 1: for purchases that that don't move the needle for you. 115 00:05:16,000 --> 00:05:18,680 Speaker 1: And it'll likely also take a lot longer to get 116 00:05:18,720 --> 00:05:21,800 Speaker 1: some financial breathing room, much less for you to reach 117 00:05:21,920 --> 00:05:23,880 Speaker 1: some of those bigger financial goals that you might have. 118 00:05:23,960 --> 00:05:26,200 Speaker 1: And so definitely make sure to check out Mint. You 119 00:05:26,200 --> 00:05:28,880 Speaker 1: can use their software for free wide NAP. We've talked 120 00:05:28,880 --> 00:05:31,440 Speaker 1: about you need a budget before, but you're gonna pay 121 00:05:31,480 --> 00:05:34,000 Speaker 1: nine dollars a month in order to use their software. 122 00:05:34,040 --> 00:05:36,920 Speaker 1: But maybe that is the sort of buy and maybe 123 00:05:36,960 --> 00:05:38,760 Speaker 1: that's the skin in the game that you need in 124 00:05:38,839 --> 00:05:41,279 Speaker 1: order to actually follow through every everyone I talked to 125 00:05:41,320 --> 00:05:44,279 Speaker 1: who has used wine they love. I was literally talking 126 00:05:44,320 --> 00:05:48,599 Speaker 1: to a parent at at school yesterday and she didn't 127 00:05:48,640 --> 00:05:50,440 Speaker 1: know what I did. Got to talk about the podcast 128 00:05:50,600 --> 00:05:53,680 Speaker 1: and she looked at me like locked eye. Oh, then 129 00:05:53,720 --> 00:05:56,039 Speaker 1: you know about why NAP right, And I was like, oh, yeah, 130 00:05:56,080 --> 00:05:58,159 Speaker 1: you are you a fan? She's like, I love Why 131 00:05:58,200 --> 00:06:00,480 Speaker 1: NAPA And so if you have not checked amount, make 132 00:06:00,480 --> 00:06:02,680 Speaker 1: sure to look into it. And by the way, back 133 00:06:02,680 --> 00:06:05,080 Speaker 1: in the episode three sixty two, we actually talked about 134 00:06:05,360 --> 00:06:07,840 Speaker 1: why it is that not only that you need a budget, 135 00:06:07,839 --> 00:06:10,160 Speaker 1: but that you need a bare bones budget, and that 136 00:06:10,279 --> 00:06:12,600 Speaker 1: when we shared why it is incredibly important for you 137 00:06:12,640 --> 00:06:15,800 Speaker 1: to know how little you could potentially live on, we're 138 00:06:16,040 --> 00:06:19,400 Speaker 1: stuff to hit the fan, especially with the looming recession 139 00:06:19,440 --> 00:06:21,800 Speaker 1: talks Matt, It's it's nice to have that bare bones 140 00:06:21,839 --> 00:06:24,240 Speaker 1: budget in your back pocket, knowing that you can cut 141 00:06:24,240 --> 00:06:28,760 Speaker 1: your spending and dramatically improve your finances overnight. So we 142 00:06:28,839 --> 00:06:32,599 Speaker 1: love people going through that practice and having that on hand. 143 00:06:32,640 --> 00:06:35,680 Speaker 1: So let's talk about housing, because not having a budget 144 00:06:35,720 --> 00:06:38,240 Speaker 1: is obviously something you're you're likely to regret. You're not 145 00:06:38,240 --> 00:06:40,840 Speaker 1: gonna be optimizing where your money is going, and that 146 00:06:40,920 --> 00:06:44,560 Speaker 1: will have significant ramifications in the short and the long 147 00:06:44,640 --> 00:06:47,800 Speaker 1: term on your financial health. But another regret that folks 148 00:06:47,839 --> 00:06:52,960 Speaker 1: are having that also has disastrous financial consequences is waving 149 00:06:53,080 --> 00:06:56,240 Speaker 1: a home inspection and we've seen people doing that hand 150 00:06:56,279 --> 00:06:59,960 Speaker 1: over fist lately. Bad idea. Yeah, and buying a car. 151 00:07:00,200 --> 00:07:01,800 Speaker 1: We've for people talking about buying a card that's a 152 00:07:01,839 --> 00:07:05,240 Speaker 1: lemon that just like has the same issue on repeat 153 00:07:05,400 --> 00:07:07,520 Speaker 1: that ends up costing people. It's it's just a it's 154 00:07:07,520 --> 00:07:09,960 Speaker 1: a money pit. Well that's a bad thing, but buying 155 00:07:10,000 --> 00:07:13,400 Speaker 1: a home that's a lemon is catastrophic. It's far worse 156 00:07:13,440 --> 00:07:16,000 Speaker 1: than even buying a car that's a lemon. But so 157 00:07:16,040 --> 00:07:18,400 Speaker 1: many folks have been doing that over the past eighteen 158 00:07:18,400 --> 00:07:21,040 Speaker 1: months as the housing market has heated up. You know, 159 00:07:21,080 --> 00:07:24,680 Speaker 1: we've warned on the show against waving inspection rights. I 160 00:07:24,720 --> 00:07:26,120 Speaker 1: know a lot of folks were doing it in an 161 00:07:26,120 --> 00:07:28,520 Speaker 1: effort to win a bidding more because like they felt 162 00:07:28,560 --> 00:07:30,080 Speaker 1: like there was no other way for them to get 163 00:07:30,080 --> 00:07:33,560 Speaker 1: the house they wanted, but still they needed to take 164 00:07:33,640 --> 00:07:36,120 Speaker 1: us up a drastic step to set them apart from 165 00:07:36,120 --> 00:07:37,800 Speaker 1: the competition. That's right, but a lot of people are 166 00:07:37,800 --> 00:07:40,680 Speaker 1: finding out on the backside of that that there are 167 00:07:40,680 --> 00:07:43,160 Speaker 1: a lot of issues with this house that they didn't 168 00:07:43,200 --> 00:07:45,720 Speaker 1: they weren't aware of because they didn't have an inspection done. 169 00:07:45,880 --> 00:07:47,640 Speaker 1: And now some folks are regretting it and they're having 170 00:07:47,680 --> 00:07:50,080 Speaker 1: a hile a ton of money into a house that 171 00:07:50,160 --> 00:07:53,120 Speaker 1: they thought had a clean bill of health. But yeah, 172 00:07:53,160 --> 00:07:56,280 Speaker 1: it's been especially risky for for home buyers lately, especially 173 00:07:56,280 --> 00:07:59,240 Speaker 1: inexperienced home buyers. It's it's incredibly risky to wave a 174 00:07:59,240 --> 00:08:02,160 Speaker 1: home inspection. We want to wave a large red caution 175 00:08:02,240 --> 00:08:05,000 Speaker 1: flag to to make you think twice before you wave 176 00:08:05,040 --> 00:08:07,520 Speaker 1: a home inspection with any offer. And hopefully is the 177 00:08:07,560 --> 00:08:09,600 Speaker 1: housing market appears to be cooling off at least a 178 00:08:09,600 --> 00:08:12,520 Speaker 1: little bit, that will feel less necessary for lots of 179 00:08:12,520 --> 00:08:14,560 Speaker 1: folks to yet Yeah, well, I mean, honestly, it's better 180 00:08:14,600 --> 00:08:16,480 Speaker 1: just to keep renting than to get in over your 181 00:08:16,520 --> 00:08:18,800 Speaker 1: head with the house that has a ton of issues. 182 00:08:19,120 --> 00:08:20,760 Speaker 1: But yeah, we I think we are seeing a little 183 00:08:20,800 --> 00:08:22,840 Speaker 1: bit more supply on that. You know, within the housing market, 184 00:08:22,840 --> 00:08:25,040 Speaker 1: we're seeing some more price cuts. We're seeing some houses 185 00:08:25,280 --> 00:08:28,280 Speaker 1: sitting longer on the market. Uh, And that means that 186 00:08:28,320 --> 00:08:32,280 Speaker 1: a home inspection clause that you would normally include is 187 00:08:32,320 --> 00:08:34,679 Speaker 1: going to be less likely to prevent your offer from 188 00:08:34,720 --> 00:08:38,439 Speaker 1: being considered moving forward, we believe, and a home inspection 189 00:08:38,600 --> 00:08:42,079 Speaker 1: isn't a necessity in every single case. In some instances, 190 00:08:42,320 --> 00:08:46,000 Speaker 1: some home sellers have actually been providing their own home inspection, 191 00:08:46,040 --> 00:08:48,160 Speaker 1: provided by a third party, just to kind of grease 192 00:08:48,200 --> 00:08:50,480 Speaker 1: the wheels, grease the skids a little bit, uh, to 193 00:08:50,559 --> 00:08:53,200 Speaker 1: kind of smooth out the process. But that is not 194 00:08:53,280 --> 00:08:55,679 Speaker 1: something we would recommend. We would still should get your own, 195 00:08:55,720 --> 00:08:57,839 Speaker 1: want you to get your own exactly. Yeah, you want 196 00:08:57,840 --> 00:09:00,320 Speaker 1: to make sure that that multi hundred thous and dollar 197 00:09:00,400 --> 00:09:03,480 Speaker 1: purchase is in good working order before you drop down 198 00:09:03,600 --> 00:09:06,000 Speaker 1: all of that change. Yeah, there are certain things that 199 00:09:06,240 --> 00:09:08,079 Speaker 1: certain regrets that people have in life. This is one 200 00:09:08,120 --> 00:09:10,080 Speaker 1: we don't want you to have because it can cost 201 00:09:10,120 --> 00:09:12,040 Speaker 1: you a ton of money and just a lot of 202 00:09:12,080 --> 00:09:15,480 Speaker 1: headaches too. Let's talk about financial literacy for a second, Matt. 203 00:09:15,559 --> 00:09:18,480 Speaker 1: There's a there's this thing called the spillover effect, which 204 00:09:18,480 --> 00:09:20,720 Speaker 1: you and I we've never really talked about on the show, 205 00:09:21,080 --> 00:09:25,040 Speaker 1: but there was a white paper written recently just released 206 00:09:25,280 --> 00:09:27,800 Speaker 1: that talks about this very phenomenon. And you know, you 207 00:09:27,840 --> 00:09:29,880 Speaker 1: and I were big fans of virtually any form of 208 00:09:29,920 --> 00:09:32,960 Speaker 1: financial literacy, and and we're always looking to highlight when 209 00:09:32,960 --> 00:09:35,959 Speaker 1: states are making it a priority in K to twelve education. 210 00:09:36,160 --> 00:09:38,840 Speaker 1: You know, our fine state of Georgia just made a 211 00:09:38,880 --> 00:09:42,600 Speaker 1: requirement for personal finance classes moving forward starting next year. 212 00:09:42,760 --> 00:09:46,120 Speaker 1: We're excited about that. But there might be some naysayers 213 00:09:46,120 --> 00:09:47,640 Speaker 1: out there. I don't know who they are, but bring 214 00:09:47,640 --> 00:09:49,680 Speaker 1: them my way and I'll set them straight. Who they 215 00:09:49,760 --> 00:09:51,680 Speaker 1: might wonder if, well, is it any of that's really 216 00:09:51,720 --> 00:09:55,520 Speaker 1: making a difference, right, or even just some skeptics who 217 00:09:55,559 --> 00:09:58,719 Speaker 1: are less enthusiastic because of how long it's going to 218 00:09:58,840 --> 00:10:01,520 Speaker 1: take for these financial lessons to make their way into 219 00:10:01,559 --> 00:10:03,560 Speaker 1: the real world, Like should we actually be teaching kids 220 00:10:03,600 --> 00:10:05,320 Speaker 1: about how to handle money well? Or is it a 221 00:10:05,320 --> 00:10:06,600 Speaker 1: waste of time? But I feel like those are the 222 00:10:06,600 --> 00:10:09,400 Speaker 1: same folks who are not willing to plant an acorn 223 00:10:09,480 --> 00:10:11,640 Speaker 1: or like a seed link to see that tree grow 224 00:10:11,720 --> 00:10:13,840 Speaker 1: up in shade the house, because it's like, well, it's 225 00:10:13,840 --> 00:10:16,000 Speaker 1: not going to benefit me at all. But even still, 226 00:10:16,040 --> 00:10:18,719 Speaker 1: I think what we're talking about here is paying it forward. Yes, 227 00:10:18,800 --> 00:10:21,880 Speaker 1: I agreed, And some recent research actually proves that there's 228 00:10:21,920 --> 00:10:25,320 Speaker 1: a large what's called a spillover effect of this newly 229 00:10:25,360 --> 00:10:29,640 Speaker 1: acquired financial knowledge that kids partake in in elementary, middle 230 00:10:29,679 --> 00:10:31,880 Speaker 1: or high school, and you know it's it's actually it's 231 00:10:31,920 --> 00:10:34,440 Speaker 1: interesting because it's not just the students who are benefiting, 232 00:10:34,480 --> 00:10:37,120 Speaker 1: it's the parents too. This study was done over the 233 00:10:37,160 --> 00:10:40,600 Speaker 1: course of a full semester, and researchers found that there 234 00:10:40,760 --> 00:10:45,440 Speaker 1: was quote unquote and economically significant increase in financial literacy 235 00:10:45,720 --> 00:10:48,479 Speaker 1: not only from what the students encountered in the classroom, 236 00:10:48,640 --> 00:10:51,480 Speaker 1: but in the knowledge that their parents acquired secondhand as well, 237 00:10:51,800 --> 00:10:54,920 Speaker 1: because those kids are bringing the lessons they're learning back 238 00:10:54,920 --> 00:10:57,920 Speaker 1: to the dinner table, they're having family conversations, and so 239 00:10:58,000 --> 00:10:59,840 Speaker 1: the parents are benefiting from what the kids are learning 240 00:10:59,840 --> 00:11:02,160 Speaker 1: to exactly. And we love hearing this, of course, because 241 00:11:02,160 --> 00:11:05,840 Speaker 1: it reinforces our belief that learning how to money will 242 00:11:05,920 --> 00:11:08,040 Speaker 1: not only create a better life for yourself, but also 243 00:11:08,080 --> 00:11:11,160 Speaker 1: for those around you. Uh. There's also another interesting aspect 244 00:11:11,200 --> 00:11:14,320 Speaker 1: of the research. It showed that the spillover effect it 245 00:11:14,360 --> 00:11:18,240 Speaker 1: didn't apply to all parents equally, but not surprisingly, there 246 00:11:18,320 --> 00:11:20,480 Speaker 1: was more of an increase in the parents who had 247 00:11:20,520 --> 00:11:22,839 Speaker 1: more of these face to face interactions with their kids 248 00:11:22,880 --> 00:11:26,400 Speaker 1: throughout the week, Meaning the more we talk about personal finances, 249 00:11:26,400 --> 00:11:29,880 Speaker 1: the better we should be doing with our personal finances. 250 00:11:29,920 --> 00:11:32,480 Speaker 1: So the t l d R is just to keep 251 00:11:32,520 --> 00:11:35,280 Speaker 1: talking about money with with everyone that you love. We're 252 00:11:35,320 --> 00:11:39,920 Speaker 1: all about making personal finance and talking about money more commonplace. 253 00:11:39,960 --> 00:11:41,440 Speaker 1: We do not want it to be to do and 254 00:11:41,480 --> 00:11:43,640 Speaker 1: so we're gonna encourage you to do the same. Yeah. 255 00:11:43,640 --> 00:11:45,680 Speaker 1: It makes me think of a conversation Matt, you and 256 00:11:45,679 --> 00:11:48,960 Speaker 1: I had years ago with Dan Lessal, who is now 257 00:11:49,000 --> 00:11:51,440 Speaker 1: he's a principal, I think, but he at the time 258 00:11:51,440 --> 00:11:55,560 Speaker 1: he was a teacher, and he like made money tangible 259 00:11:55,760 --> 00:11:58,320 Speaker 1: for the kids the personal finance classes at this inner 260 00:11:58,320 --> 00:12:01,080 Speaker 1: city school in Philadelphia. He gave them money, he gave 261 00:12:01,120 --> 00:12:04,160 Speaker 1: them jobs, they had actual cash on hand to start investing. 262 00:12:04,559 --> 00:12:07,000 Speaker 1: And one of the side effects that he mentioned was 263 00:12:07,040 --> 00:12:09,720 Speaker 1: that parents of these kids who didn't know much about 264 00:12:09,720 --> 00:12:12,920 Speaker 1: personal finance. As these kids were learning a ton, the 265 00:12:12,960 --> 00:12:14,559 Speaker 1: parents were learning a lot too, And I thought that 266 00:12:14,600 --> 00:12:16,599 Speaker 1: was cool. The spillover effect. We never really talked about it, 267 00:12:16,640 --> 00:12:18,120 Speaker 1: but now that I'm thinking back, I'm like, oh, well, 268 00:12:18,120 --> 00:12:20,959 Speaker 1: we kind of referred to at least that's what that was. Yeah, 269 00:12:21,000 --> 00:12:23,360 Speaker 1: that's what was happening in that case. That's right. Okay, 270 00:12:23,400 --> 00:12:26,520 Speaker 1: let's keep moving. Let's talk about how the Washington post 271 00:12:26,559 --> 00:12:30,360 Speaker 1: they wrote this article about an airport beer. You'll know, 272 00:12:30,559 --> 00:12:32,880 Speaker 1: we're not against paying more for some great beer, but 273 00:12:32,920 --> 00:12:35,160 Speaker 1: we're not talking about paying that much for an incredible 274 00:12:35,160 --> 00:12:39,719 Speaker 1: barrel aged stout or some meticulously crafted fruited sour. I'll 275 00:12:39,720 --> 00:12:42,000 Speaker 1: pay a lot of money for a cantio on my friend, right. No, No, 276 00:12:42,160 --> 00:12:46,920 Speaker 1: this is a dollar Sam Adam summer ale ouch, which 277 00:12:46,960 --> 00:12:49,040 Speaker 1: is what I'm not going to knock on Same Adams. 278 00:12:49,760 --> 00:12:52,720 Speaker 1: Seven bucks is a lot. It's not worth it, and 279 00:12:52,720 --> 00:12:55,800 Speaker 1: it set off this crackdown on concession prices by the 280 00:12:55,840 --> 00:12:58,240 Speaker 1: New York Ports Authority. I think this beer was sold 281 00:12:58,280 --> 00:13:01,600 Speaker 1: at La Guardia. It's kind of funny that just a 282 00:13:01,640 --> 00:13:05,280 Speaker 1: really expensive, generic, some somewhat craft beer can set off 283 00:13:05,320 --> 00:13:09,240 Speaker 1: like some sort of government intervention. Well, honestly, like that's 284 00:13:09,240 --> 00:13:10,679 Speaker 1: that That's a part of why we're talking about this, 285 00:13:10,720 --> 00:13:12,960 Speaker 1: right because the real question is should there be a 286 00:13:13,000 --> 00:13:15,959 Speaker 1: bunch of interventions just because someone decided to pay that 287 00:13:16,080 --> 00:13:18,160 Speaker 1: much for the for a beer, Like, let people make 288 00:13:18,240 --> 00:13:21,320 Speaker 1: their dumb decisions if they want to with with their money, right. 289 00:13:21,320 --> 00:13:22,800 Speaker 1: I mean if I had seen that, of course I 290 00:13:22,800 --> 00:13:24,520 Speaker 1: would have been like, wait, the same amount of summer 291 00:13:24,559 --> 00:13:27,280 Speaker 1: and this is worth maybe a third of this at most, 292 00:13:27,559 --> 00:13:29,360 Speaker 1: and I would have kept I would kept walking or 293 00:13:29,480 --> 00:13:32,560 Speaker 1: ordered water instead, or ordered another beer that didn't cost 294 00:13:32,600 --> 00:13:35,000 Speaker 1: as much. But I'm usually like, I'm not much of 295 00:13:35,000 --> 00:13:37,920 Speaker 1: an airport beer guy, just because the prices are inflated 296 00:13:37,920 --> 00:13:39,960 Speaker 1: at the airport. Like, just keep moving on down the road. 297 00:13:40,200 --> 00:13:42,640 Speaker 1: But some folks would argue that, like, oh no, the 298 00:13:42,679 --> 00:13:44,440 Speaker 1: airport beer is the best kind of beer, you know, 299 00:13:44,480 --> 00:13:46,400 Speaker 1: like like there's all there's there's all different types of 300 00:13:46,440 --> 00:13:49,560 Speaker 1: beers that are dependent upon the situation in which you drink, 301 00:13:49,679 --> 00:13:52,680 Speaker 1: like a hot tub beer, shower beer, the beach beers. Also, 302 00:13:52,679 --> 00:13:54,360 Speaker 1: I didn't know airport beer was included in that. Oh 303 00:13:54,640 --> 00:13:56,720 Speaker 1: I think not for me personally, because I'm not willing 304 00:13:56,720 --> 00:13:58,880 Speaker 1: to pay the inflated rates as well. But for those 305 00:13:58,920 --> 00:14:01,600 Speaker 1: who want to pay stupid prices for that airport beer, 306 00:14:01,640 --> 00:14:03,800 Speaker 1: I think they should be allowed to do so. It's 307 00:14:03,800 --> 00:14:05,800 Speaker 1: not like they're being forced to pay that for something 308 00:14:05,800 --> 00:14:07,720 Speaker 1: that they must have in order to survive or something like. 309 00:14:07,760 --> 00:14:09,200 Speaker 1: It's not like it's it's not like we're talking about 310 00:14:09,200 --> 00:14:11,480 Speaker 1: baby formulas, right, Like, there's a big difference between big 311 00:14:11,520 --> 00:14:14,760 Speaker 1: difference formula and a summer ail. But we've actually got 312 00:14:14,880 --> 00:14:18,040 Speaker 1: more to discuss in the realm of ridiculous prices, and 313 00:14:18,080 --> 00:14:20,240 Speaker 1: we will get some more of that right after this. 314 00:14:30,000 --> 00:14:32,200 Speaker 1: All right, we're back and it's it's time to get 315 00:14:32,240 --> 00:14:34,560 Speaker 1: into the ludicrous headline of the week. Matt. We were 316 00:14:34,560 --> 00:14:38,160 Speaker 1: just talking about expensive beer at the airport. Well, this 317 00:14:38,200 --> 00:14:40,480 Speaker 1: week's ludicrous headline comes from the New York Times and 318 00:14:40,480 --> 00:14:43,720 Speaker 1: it reads, I listened in on big business. It's profiting 319 00:14:43,880 --> 00:14:46,240 Speaker 1: from inflation and you're paying for it. Time to talk 320 00:14:46,240 --> 00:14:49,600 Speaker 1: about price gouge. Let's talk about price gouging, price profiteering. 321 00:14:49,920 --> 00:14:52,480 Speaker 1: It's it is true than in this time of rising prices, 322 00:14:52,880 --> 00:14:56,520 Speaker 1: many businesses have actually seen increased profits. You know, some 323 00:14:56,600 --> 00:14:59,640 Speaker 1: of these businesses have been able to pass higher costs 324 00:14:59,760 --> 00:15:03,880 Speaker 1: and a little bit more onto consumers. Uh. In recent months, 325 00:15:04,160 --> 00:15:07,320 Speaker 1: this has led to more folks, including some politicians, pointing 326 00:15:07,360 --> 00:15:12,360 Speaker 1: fingers at Corporate America with accusations of price gouging. But 327 00:15:12,440 --> 00:15:15,400 Speaker 1: here's the thing. In a market based economy, a company 328 00:15:15,440 --> 00:15:18,480 Speaker 1: that rips off its customers doesn't often perform well in 329 00:15:18,560 --> 00:15:21,920 Speaker 1: the long term. Like to that beer example, most folks 330 00:15:22,120 --> 00:15:24,120 Speaker 1: see the price and they keep walking on because they 331 00:15:24,160 --> 00:15:28,680 Speaker 1: say that's ludicrous, even though it was. I also saw 332 00:15:28,760 --> 00:15:31,320 Speaker 1: that still more than a dollar announced my friend, very 333 00:15:31,400 --> 00:15:35,200 Speaker 1: very expensive. Well, plus, many of these businesses are taking 334 00:15:35,200 --> 00:15:38,720 Speaker 1: those profits, they're investing more back into the business, training 335 00:15:38,720 --> 00:15:43,480 Speaker 1: more employees, offering raises to their employees. Other businesses are 336 00:15:43,480 --> 00:15:45,920 Speaker 1: actually reporting less than stellar numbers. Look at what happened 337 00:15:46,080 --> 00:15:48,640 Speaker 1: with Walmart and Target and their earnings reports this week. 338 00:15:48,800 --> 00:15:51,400 Speaker 1: You know, if customers get taken advantage of, they tend 339 00:15:51,480 --> 00:15:53,600 Speaker 1: to vote with their wallets and they go elsewhere in 340 00:15:53,600 --> 00:15:57,000 Speaker 1: the future. Profit padding, I would say, is is not real. 341 00:15:57,240 --> 00:15:59,840 Speaker 1: You know, it's not the reason that we're seeing higher 342 00:15:59,840 --> 00:16:02,120 Speaker 1: than normal inflation. Yeah. Again, going back to the beer story, 343 00:16:02,200 --> 00:16:04,240 Speaker 1: I think only like three people had purchased, had had 344 00:16:04,240 --> 00:16:06,000 Speaker 1: spent that much money on that on that dumb beer. 345 00:16:07,080 --> 00:16:09,160 Speaker 1: But my question would be, like those people probably had 346 00:16:09,160 --> 00:16:12,760 Speaker 1: expense accounts and you know, they had experiencing their employer 347 00:16:12,800 --> 00:16:14,600 Speaker 1: was paying for it, because it's not an individual who 348 00:16:14,720 --> 00:16:16,480 Speaker 1: is price sensitive paying for that, right. But it's it's 349 00:16:16,480 --> 00:16:18,680 Speaker 1: not like a bunch of companies got together and you 350 00:16:18,680 --> 00:16:21,320 Speaker 1: know all at once decided to become a little more greedy, 351 00:16:21,440 --> 00:16:24,400 Speaker 1: but actually caused the change because competition is still strong 352 00:16:24,520 --> 00:16:27,880 Speaker 1: in most sectors of our economy. Uh. And even though yeah, 353 00:16:27,920 --> 00:16:30,320 Speaker 1: there are some corporations that have seen increased profits, that 354 00:16:30,360 --> 00:16:32,760 Speaker 1: doesn't mean that these profits are going to continue to 355 00:16:32,800 --> 00:16:35,160 Speaker 1: be inflated uh in the coming months into the future. 356 00:16:35,360 --> 00:16:37,120 Speaker 1: And here's the thing, you don't even have to This 357 00:16:37,200 --> 00:16:39,560 Speaker 1: is more of kind of like the opinion corner right now, 358 00:16:39,840 --> 00:16:41,960 Speaker 1: proud of money, but you don't have to op ed section. 359 00:16:42,040 --> 00:16:45,160 Speaker 1: Take our word for it. A survey of economists shows 360 00:16:45,200 --> 00:16:48,720 Speaker 1: that the vast majority of economists disagree with the narrative 361 00:16:48,760 --> 00:16:52,600 Speaker 1: that businesses are exploiting the inflationary environment to rake in 362 00:16:52,680 --> 00:16:54,400 Speaker 1: more dough. And on top of that, almost all of 363 00:16:54,400 --> 00:16:57,000 Speaker 1: these economists disagreed with the idea that government use of 364 00:16:57,040 --> 00:17:01,240 Speaker 1: price controls would help rein in inflation as well COVID delays, 365 00:17:01,320 --> 00:17:03,800 Speaker 1: supply shortages, these these have all been difficult for many 366 00:17:03,840 --> 00:17:05,840 Speaker 1: businesses to deal with, but it's important to remember that 367 00:17:06,040 --> 00:17:09,439 Speaker 1: healthy businesses helped to create a healthy economy that we 368 00:17:09,520 --> 00:17:11,919 Speaker 1: all end up benefiting from in the end. Yeah, we 369 00:17:11,920 --> 00:17:14,840 Speaker 1: can talk about a lot of reasons that inflation has 370 00:17:14,880 --> 00:17:17,360 Speaker 1: taken off the way that it has, and I know 371 00:17:17,600 --> 00:17:21,440 Speaker 1: that it's painful for consumers, but if you want things 372 00:17:21,480 --> 00:17:24,280 Speaker 1: to get more painful. Just try instituting price controls. Just 373 00:17:24,320 --> 00:17:27,800 Speaker 1: try creating more levers over who can charge what for 374 00:17:27,880 --> 00:17:30,639 Speaker 1: what good or service. There are some historical examples we 375 00:17:30,640 --> 00:17:32,199 Speaker 1: can point to you of how that works out. But 376 00:17:32,480 --> 00:17:35,439 Speaker 1: a perfect example also of what we're talking about was 377 00:17:35,480 --> 00:17:38,320 Speaker 1: reflected in another story actually from Bloomberg this week. A 378 00:17:38,400 --> 00:17:41,520 Speaker 1: T and T and Verizon are raising prices on cell 379 00:17:41,520 --> 00:17:43,600 Speaker 1: phone plans. It's not by a ton, it's not a 380 00:17:43,600 --> 00:17:46,280 Speaker 1: big move forward, but millions of customers are going to 381 00:17:46,320 --> 00:17:49,520 Speaker 1: start seeing an increased administration charge on their bill, meaning 382 00:17:49,560 --> 00:17:52,560 Speaker 1: they're gonna pay a dollar thirty five more moving forward 383 00:17:52,720 --> 00:17:55,520 Speaker 1: starting next month. Are these companies trying to eke out 384 00:17:55,600 --> 00:17:59,720 Speaker 1: some additional profit? Maybe? Do Do we hate fees? Yes? 385 00:17:59,760 --> 00:18:02,800 Speaker 1: We do. Is this gouging though? We would say no. 386 00:18:03,080 --> 00:18:05,400 Speaker 1: And the great thing is you can leave those companies 387 00:18:05,520 --> 00:18:08,560 Speaker 1: whenever you want to. You can do business elsewhere. And 388 00:18:08,720 --> 00:18:11,120 Speaker 1: we would say, if you're with either of those two companies, 389 00:18:11,400 --> 00:18:13,800 Speaker 1: you should, Yeah, you should leave right now, you should 390 00:18:13,840 --> 00:18:15,800 Speaker 1: go down the road. Just like the bonuses for the 391 00:18:15,800 --> 00:18:18,480 Speaker 1: different checking accounts. This is the perfect opportunity for you 392 00:18:18,560 --> 00:18:20,800 Speaker 1: to say, you know what, Like from a principal standpoint, 393 00:18:20,800 --> 00:18:22,040 Speaker 1: it is time for me to move all it's just 394 00:18:22,040 --> 00:18:24,399 Speaker 1: a buck thirty. But guess what, I don't want to 395 00:18:24,400 --> 00:18:26,480 Speaker 1: deal with that, and I'm already paying more than I 396 00:18:26,480 --> 00:18:29,520 Speaker 1: should be in so Mintmobile, Visible and Google five are 397 00:18:29,520 --> 00:18:32,960 Speaker 1: all vastly superior options, and those companies have actually been 398 00:18:33,080 --> 00:18:36,600 Speaker 1: reducing rates and fees in recent months. So competition is 399 00:18:36,600 --> 00:18:39,399 Speaker 1: alive and well in most sectors and it's benefiting all 400 00:18:39,440 --> 00:18:41,560 Speaker 1: of us. Yeah. Again, as long as we have options 401 00:18:41,560 --> 00:18:43,320 Speaker 1: to spend our money in the ways that we want to, 402 00:18:43,760 --> 00:18:45,760 Speaker 1: we will see the market correct itself. We will see 403 00:18:45,960 --> 00:18:48,119 Speaker 1: people looking because because here's the thing, if there's not 404 00:18:48,200 --> 00:18:51,560 Speaker 1: competition like there wasn't ten years ago in the cell 405 00:18:51,600 --> 00:18:55,600 Speaker 1: phone service provider space, you're gonna see companies like Visible 406 00:18:55,840 --> 00:18:58,440 Speaker 1: and Mints and Google five pop up because they see 407 00:18:58,440 --> 00:19:01,280 Speaker 1: that opportunity is going to happen overnights. No, and so 408 00:19:01,320 --> 00:19:03,320 Speaker 1: there will be I think some periods of time when 409 00:19:03,480 --> 00:19:05,159 Speaker 1: we might be paying a little bit more than we 410 00:19:05,160 --> 00:19:07,720 Speaker 1: would like to, but that is leaving the door open 411 00:19:07,800 --> 00:19:09,960 Speaker 1: for opportunity for somebody who is willing to be a 412 00:19:10,000 --> 00:19:12,760 Speaker 1: little more entrepreneurial and to provide a service that people 413 00:19:12,880 --> 00:19:16,120 Speaker 1: are willing to pay for. So, Joel, you know, we're 414 00:19:16,119 --> 00:19:19,320 Speaker 1: not sold on the company's gouging US narrative necessarily, but 415 00:19:19,400 --> 00:19:23,639 Speaker 1: gouging is taking place in some industries. Consumer Reports they 416 00:19:23,680 --> 00:19:28,680 Speaker 1: detailed car repair loans, not car loans. Car repair loans 417 00:19:28,720 --> 00:19:31,280 Speaker 1: that uh. I didn't even really know these worthing until 418 00:19:31,320 --> 00:19:33,520 Speaker 1: I read this Consumer Reports article. Yes, some I went 419 00:19:33,720 --> 00:19:36,679 Speaker 1: some car repair chains are engaging now in this practice. Like, 420 00:19:36,680 --> 00:19:38,119 Speaker 1: we're not even fans of taking out a loan to 421 00:19:38,359 --> 00:19:40,520 Speaker 1: buy a car, much less than getting a loan for 422 00:19:40,680 --> 00:19:43,640 Speaker 1: repairs on your car. But some of the more well 423 00:19:43,680 --> 00:19:47,600 Speaker 1: known car repair brands like Amco, Jiffy Lube, Precision Tune 424 00:19:47,640 --> 00:19:50,119 Speaker 1: sat up well known, I would say notorious. It's probably 425 00:19:50,640 --> 00:19:54,000 Speaker 1: they're charging massive rates of interest on loans that they're 426 00:19:54,040 --> 00:19:57,159 Speaker 1: dolling out to customers who can't afford to pay for 427 00:19:57,200 --> 00:20:00,280 Speaker 1: that repair upfront. Some of these loans had interest rates 428 00:20:00,320 --> 00:20:03,720 Speaker 1: up to one and eight nine percent. That's paid a 429 00:20:03,760 --> 00:20:06,920 Speaker 1: loan territory. It's pretty messed up. The CFPB. They're seeing 430 00:20:06,920 --> 00:20:09,880 Speaker 1: a rise in complaints for these sorts of predatory car 431 00:20:09,960 --> 00:20:12,640 Speaker 1: repair loans as well. So our advice don't ever take 432 00:20:12,640 --> 00:20:15,080 Speaker 1: out one of these loans. Never. It's a it's a 433 00:20:15,080 --> 00:20:18,679 Speaker 1: financial necessity to save up for potential future car repairs. Uh. 434 00:20:18,720 --> 00:20:21,040 Speaker 1: And you do this by just setting aside money every 435 00:20:21,080 --> 00:20:23,720 Speaker 1: single month. You know it's inevitable, Like you know that 436 00:20:23,760 --> 00:20:25,239 Speaker 1: at some point in time, even if you have an 437 00:20:25,240 --> 00:20:27,639 Speaker 1: ev you're going to have to make some repairs to 438 00:20:27,680 --> 00:20:31,639 Speaker 1: your car, whether that's just paying for like new winchell 439 00:20:31,680 --> 00:20:34,720 Speaker 1: wipers or new tires or something larger. Uh. And you 440 00:20:34,880 --> 00:20:37,200 Speaker 1: take out a loan for winch of wipers, than you're 441 00:20:37,200 --> 00:20:39,359 Speaker 1: in a really bad position. But even if you absolutely 442 00:20:39,359 --> 00:20:42,000 Speaker 1: had to borrow somebody to make a larger repair something 443 00:20:42,040 --> 00:20:45,720 Speaker 1: and you know, bigger than wiper blades, your credit union 444 00:20:45,760 --> 00:20:48,680 Speaker 1: that is likely going to have much better options for you. 445 00:20:48,760 --> 00:20:51,680 Speaker 1: Do not take out a car repair loan. No, yes, 446 00:20:51,760 --> 00:20:54,680 Speaker 1: please do not, especially from one of these chains that 447 00:20:54,800 --> 00:20:57,320 Speaker 1: is charging ridiculous amounts of interest. So something that could 448 00:20:57,440 --> 00:21:01,680 Speaker 1: might cost uh repair couldn't end up costing you or 449 00:21:01,720 --> 00:21:04,520 Speaker 1: something like that because of the interest that they're charging 450 00:21:04,520 --> 00:21:05,919 Speaker 1: on It makes sense though it's it's sort of like, 451 00:21:05,960 --> 00:21:07,960 Speaker 1: I mean, these different car pair of places, they're taking 452 00:21:07,960 --> 00:21:09,919 Speaker 1: a leaf out of there, taking the page out of 453 00:21:10,240 --> 00:21:13,000 Speaker 1: Victoria's Secret, but in a Republic's playbook right where they're 454 00:21:13,000 --> 00:21:15,359 Speaker 1: trying to get people to sign up for financing because 455 00:21:15,400 --> 00:21:17,040 Speaker 1: that is how they make so much money, right, so 456 00:21:17,119 --> 00:21:19,480 Speaker 1: they make their money. Speaking of financing, Matt, and you 457 00:21:19,560 --> 00:21:22,600 Speaker 1: just mentioned we don't even like car loans. Well, um, 458 00:21:22,800 --> 00:21:26,359 Speaker 1: the average car note as it stands is six fifty 459 00:21:26,359 --> 00:21:30,320 Speaker 1: dollars a month and the average length of that car 460 00:21:30,359 --> 00:21:33,639 Speaker 1: loan is almost six years. That's according to Edmunds. So 461 00:21:33,680 --> 00:21:36,280 Speaker 1: those are recent stats. Man. I couldn't believe it when 462 00:21:36,280 --> 00:21:37,959 Speaker 1: I saw it. So not only people are taking out 463 00:21:37,960 --> 00:21:39,919 Speaker 1: these these car pair loans, when people are also just 464 00:21:39,920 --> 00:21:42,160 Speaker 1: have on top of that some sort of six hundred 465 00:21:42,200 --> 00:21:45,080 Speaker 1: fifty dollar a month uh debt in their life that 466 00:21:45,119 --> 00:21:47,800 Speaker 1: they're paying religiously. It's crazy. So you could have a 467 00:21:47,800 --> 00:21:49,640 Speaker 1: seventh grader and by the time you pay off that car, 468 00:21:49,960 --> 00:21:54,159 Speaker 1: they're a freshman in college. Yeah, that's frightening. That's uh, 469 00:21:54,280 --> 00:21:56,200 Speaker 1: that's really scary that it would take you that long 470 00:21:56,440 --> 00:21:57,960 Speaker 1: to pay off your car loan and that it would 471 00:21:57,960 --> 00:22:00,720 Speaker 1: cost you that much every single month. You know, Like 472 00:22:00,760 --> 00:22:03,119 Speaker 1: Matt said, we're big fans of having no car payment 473 00:22:03,200 --> 00:22:05,639 Speaker 1: at all. Paying cash for your next car is a 474 00:22:05,640 --> 00:22:08,040 Speaker 1: great goal to have, and that means, uh, starting to 475 00:22:08,080 --> 00:22:09,840 Speaker 1: save money for that now. So for these things, like 476 00:22:09,960 --> 00:22:12,160 Speaker 1: you mentioned whine App earlier, Matt whine App is great 477 00:22:12,200 --> 00:22:14,679 Speaker 1: at helping you plan for future expenses like that, but 478 00:22:15,000 --> 00:22:17,000 Speaker 1: you know you don't need software to help you do that. 479 00:22:17,200 --> 00:22:19,159 Speaker 1: You can do that on your own. And starting a 480 00:22:19,240 --> 00:22:21,520 Speaker 1: sinking fund for that next car purchase so that you 481 00:22:21,560 --> 00:22:24,760 Speaker 1: aren't signing yourself up for some sort of ridiculous six 482 00:22:25,720 --> 00:22:28,480 Speaker 1: eight hundred dollar a month car payment is is crucial. 483 00:22:28,760 --> 00:22:30,800 Speaker 1: Your car might be driving fine right now, but it 484 00:22:30,840 --> 00:22:33,600 Speaker 1: can't hurt to start planning for something a few years 485 00:22:33,600 --> 00:22:36,360 Speaker 1: down the road totally, especially if you're driving a much 486 00:22:36,359 --> 00:22:38,280 Speaker 1: older car you know that's starting to have maybe a 487 00:22:38,280 --> 00:22:40,679 Speaker 1: few more issues than I think. Starting a sinking fund 488 00:22:40,920 --> 00:22:43,440 Speaker 1: for that new car purchase would be wise. Even just 489 00:22:43,480 --> 00:22:45,560 Speaker 1: talking away a hundred or two hundred bucks a month 490 00:22:45,840 --> 00:22:48,359 Speaker 1: would be a massive help, you know, when it comes 491 00:22:48,400 --> 00:22:52,080 Speaker 1: time to buy that new car. Unfortunately, actually, use car 492 00:22:52,119 --> 00:22:55,600 Speaker 1: prices are finally going down after a couple of years 493 00:22:55,880 --> 00:22:59,520 Speaker 1: of those prices defining gravity and rising like a balloon 494 00:23:00,080 --> 00:23:02,320 Speaker 1: go by a two year olds what was up was 495 00:23:02,400 --> 00:23:04,640 Speaker 1: down And someone had told me three years ago, guess 496 00:23:04,680 --> 00:23:06,680 Speaker 1: what use car prices are going too sore, I would 497 00:23:06,800 --> 00:23:10,439 Speaker 1: like what, no way, that's like the opposite of everything 498 00:23:10,480 --> 00:23:12,679 Speaker 1: you learned in personal finance one on one. Yeah, I mean, 499 00:23:12,680 --> 00:23:15,119 Speaker 1: they're unlikely the crater back to pre pandemic levels in 500 00:23:15,119 --> 00:23:17,360 Speaker 1: the near future, but it's good at least to see 501 00:23:17,400 --> 00:23:20,159 Speaker 1: that we're starting to see signs of normalcy within that 502 00:23:20,280 --> 00:23:22,879 Speaker 1: used car market inventory. Yeah, alright, Matt on a on 503 00:23:22,920 --> 00:23:27,280 Speaker 1: a similar note of cars, well, there was an interesting 504 00:23:27,359 --> 00:23:32,240 Speaker 1: story this week about electric car manufacturer Tesla and it's 505 00:23:32,240 --> 00:23:35,359 Speaker 1: intersection of them with sustainable Investing. Yes, they're CEO is 506 00:23:35,400 --> 00:23:38,120 Speaker 1: like outspoken then brash on Twitter apparently, um never heard 507 00:23:38,119 --> 00:23:42,160 Speaker 1: of that guy who knew? But what's known as e 508 00:23:42,280 --> 00:23:47,080 Speaker 1: s G funds that that prioritize environmental, social, and governance 509 00:23:47,119 --> 00:23:50,040 Speaker 1: factors when it comes to the companies they invest in, 510 00:23:50,359 --> 00:23:53,320 Speaker 1: while the S and P actually has its own E 511 00:23:53,560 --> 00:23:56,240 Speaker 1: s G index, And they announced this week that they're 512 00:23:56,280 --> 00:24:00,920 Speaker 1: kicking Tesla out. And of course, uh elon Musk, he's 513 00:24:00,960 --> 00:24:04,000 Speaker 1: always got a response, he's always got some sort of 514 00:24:04,240 --> 00:24:07,760 Speaker 1: something to say about everything that happens, but specifically anything 515 00:24:07,840 --> 00:24:10,320 Speaker 1: happens with Tesla, and he called E s G funds 516 00:24:10,480 --> 00:24:14,399 Speaker 1: the devil incarnate um overkill. Yeah, maybe maybe just a 517 00:24:14,400 --> 00:24:16,920 Speaker 1: little bit. But my friend Jack, he writes over a 518 00:24:17,000 --> 00:24:18,879 Speaker 1: Young Money Matt, he actually wrote this week that E 519 00:24:19,080 --> 00:24:22,400 Speaker 1: s G and I quote isn't real, And I think 520 00:24:22,400 --> 00:24:25,399 Speaker 1: he's onto something. We've talked about this before, that people 521 00:24:25,600 --> 00:24:29,240 Speaker 1: place too much value on E s G funds, and 522 00:24:29,240 --> 00:24:31,520 Speaker 1: the companies that are included in these e s G 523 00:24:31,640 --> 00:24:34,399 Speaker 1: funds varies across the board, depends on who, depending on 524 00:24:34,400 --> 00:24:37,439 Speaker 1: who's picking and uh for instance, like you know, if Tesla, 525 00:24:37,760 --> 00:24:41,800 Speaker 1: the world's foremost e V maker, isn't worthy of inclusion 526 00:24:41,960 --> 00:24:45,119 Speaker 1: in this e s G index, but x on Mobile is. 527 00:24:45,720 --> 00:24:47,760 Speaker 1: I guess I'm just really confused about what the actual 528 00:24:47,800 --> 00:24:51,040 Speaker 1: credentials are for for inclusion or for a company that's 529 00:24:51,080 --> 00:24:54,600 Speaker 1: considered to be doing socially responsible things. So it goes 530 00:24:54,600 --> 00:24:57,879 Speaker 1: to show that your definition of sustainable investing it may 531 00:24:57,920 --> 00:25:01,240 Speaker 1: not be someone else's definition. So our advice is to 532 00:25:01,400 --> 00:25:04,359 Speaker 1: invest in these funds with caution and do it for 533 00:25:04,400 --> 00:25:06,760 Speaker 1: the right reasons. Make sure that you're doing your due 534 00:25:06,800 --> 00:25:08,920 Speaker 1: diligence to make sure that any E s G fund 535 00:25:08,960 --> 00:25:11,360 Speaker 1: you're for taking in is actually investing in the companies 536 00:25:11,720 --> 00:25:14,320 Speaker 1: you think are doing good work, and also pay attention 537 00:25:14,359 --> 00:25:16,840 Speaker 1: to the fees these e s G funds are come 538 00:25:16,920 --> 00:25:19,879 Speaker 1: with much higher fees typically than the index funds that 539 00:25:19,920 --> 00:25:22,480 Speaker 1: Matt and I recommend. And I get the desire to 540 00:25:22,640 --> 00:25:25,879 Speaker 1: invest in companies that are also doing good. It's just 541 00:25:25,960 --> 00:25:28,720 Speaker 1: that not every E s G fund is actually doing that. Yeah, 542 00:25:28,720 --> 00:25:30,520 Speaker 1: and I like what you said about making sure that 543 00:25:30,520 --> 00:25:32,800 Speaker 1: you're investing for the right reasons, because I do think 544 00:25:32,840 --> 00:25:34,879 Speaker 1: a lot of folks are making these investments just to 545 00:25:35,040 --> 00:25:38,040 Speaker 1: kind of soothe over their conscience a little. You feel good, 546 00:25:38,080 --> 00:25:40,480 Speaker 1: we've we've gotten into the habit I think of outsourcing 547 00:25:40,480 --> 00:25:43,919 Speaker 1: our own responsibility towards the world and the environment and 548 00:25:43,960 --> 00:25:46,199 Speaker 1: some of the other charitable causes that maybe folks used 549 00:25:46,240 --> 00:25:48,919 Speaker 1: to participate in. But instead they buy a pair of socks, 550 00:25:49,119 --> 00:25:50,560 Speaker 1: or they buy a pair of shoes, or the buy 551 00:25:50,560 --> 00:25:53,200 Speaker 1: a pair of glasses, and guess what, they take care 552 00:25:53,200 --> 00:25:55,400 Speaker 1: of the donation part of that. And I do think 553 00:25:55,400 --> 00:25:58,600 Speaker 1: it's great that companies have more of a mission right, 554 00:25:58,640 --> 00:26:01,359 Speaker 1: like they have more of a riitable mindset. But I 555 00:26:01,400 --> 00:26:03,439 Speaker 1: do believe that that lets people off the hook a 556 00:26:03,440 --> 00:26:05,240 Speaker 1: little bit, and then when it comes to something like 557 00:26:05,280 --> 00:26:07,760 Speaker 1: this and how they invest they think, oh, E s G. 558 00:26:07,960 --> 00:26:10,600 Speaker 1: That's much better when in fact, it's not necessarily better 559 00:26:10,640 --> 00:26:12,439 Speaker 1: from the standpoint of the companies that they invest in, 560 00:26:12,440 --> 00:26:15,280 Speaker 1: and like you said, oftentimes they are more expensive, even Vanguard. 561 00:26:15,680 --> 00:26:17,760 Speaker 1: If you look at their total stock market e t 562 00:26:18,000 --> 00:26:21,640 Speaker 1: F expense ratio of point zero three percent uh, their 563 00:26:21,760 --> 00:26:24,560 Speaker 1: total stock market E s G fund is point zero 564 00:26:24,800 --> 00:26:28,480 Speaker 1: nine that's three times more expensive. And granted that's not 565 00:26:28,520 --> 00:26:31,200 Speaker 1: really it's still really cheap, right, Like we're talking about 566 00:26:31,400 --> 00:26:34,240 Speaker 1: hundreds of a percent in here, but principally speaking, it's 567 00:26:34,320 --> 00:26:36,399 Speaker 1: literally three times more expensive. And so are you going 568 00:26:36,440 --> 00:26:38,120 Speaker 1: to going to see a bigger gap with a whole 569 00:26:38,119 --> 00:26:40,520 Speaker 1: lot of other fund providers. So absolutely, yeah, this is 570 00:26:40,600 --> 00:26:42,879 Speaker 1: van Like basically, this is as affordable of an E 571 00:26:43,000 --> 00:26:44,560 Speaker 1: s G fund I think that you can get. If 572 00:26:44,560 --> 00:26:46,840 Speaker 1: anyone's beating them, maybe it's Fidelity because they like to 573 00:26:46,840 --> 00:26:50,040 Speaker 1: go zero with things. But again, just keep that in mind, 574 00:26:50,040 --> 00:26:52,000 Speaker 1: makes make sure that you are investing for the right reasons. 575 00:26:52,119 --> 00:26:53,520 Speaker 1: But as it stands, it seems like E s G 576 00:26:53,600 --> 00:26:55,480 Speaker 1: investing is just a bunch of signaling. It's a bunch 577 00:26:55,520 --> 00:26:58,840 Speaker 1: of theater unless you've been able to identify that the 578 00:26:58,880 --> 00:27:01,960 Speaker 1: particular fund that you're investing it is excluding a certain 579 00:27:02,040 --> 00:27:05,320 Speaker 1: type of industry that you don't want to be investing in. Yeah, 580 00:27:05,320 --> 00:27:08,239 Speaker 1: and depending on how you view social media and what 581 00:27:08,240 --> 00:27:10,720 Speaker 1: it's doing to the fabric of our society, an E 582 00:27:10,840 --> 00:27:14,000 Speaker 1: s G fund might be creating more division in our 583 00:27:14,080 --> 00:27:17,760 Speaker 1: culture as a whole because it is investing in some 584 00:27:17,840 --> 00:27:20,560 Speaker 1: of the social media companies that maybe you might not 585 00:27:20,720 --> 00:27:22,560 Speaker 1: be a big fan of. So much of it comes 586 00:27:22,560 --> 00:27:25,600 Speaker 1: down to the particulars of each individual fund and it's 587 00:27:25,600 --> 00:27:27,560 Speaker 1: something just just want to put that on your radar 588 00:27:27,840 --> 00:27:30,520 Speaker 1: this week. But Matt, that's gonna do it for today's 589 00:27:30,560 --> 00:27:33,000 Speaker 1: Friday flight. Uh. We hope everyone out there has a 590 00:27:33,040 --> 00:27:35,240 Speaker 1: great weekend, and on Monday, we'll be back with a 591 00:27:35,240 --> 00:27:38,400 Speaker 1: fresh episode with It's an interview with our new friend, 592 00:27:38,520 --> 00:27:42,000 Speaker 1: Erica Young, who is a legit excellent money coach, and 593 00:27:42,040 --> 00:27:44,480 Speaker 1: she's gonna talk all about what benefit you can derive 594 00:27:44,600 --> 00:27:46,920 Speaker 1: from having a money coach in your corner. It's an 595 00:27:46,920 --> 00:27:49,159 Speaker 1: excellent conversation and we look forward to sharing it with you. 596 00:27:49,240 --> 00:27:51,080 Speaker 1: Then that's right, So that's gonna be it for today though, 597 00:27:51,160 --> 00:28:05,200 Speaker 1: until next time, Best Friends Out, Best Friends Out.