WEBVTT - Friday Flight - Forgiveness Reality, Expensive Offspring, & DIY Coffins #558 0:00:00.040 --> 0:00:03.040 Welcome to How the Money. I'm Joel and I am that. 0:00:03.320 --> 0:00:05.480 And today, of course we're gonna be discussing the new 0:00:05.600 --> 0:00:08.320 student loan forgiveness reality. We're gonna also talk about an 0:00:08.320 --> 0:00:29.800 expensive offspring and d I y Coffins. All right, man, 0:00:29.840 --> 0:00:31.840 we got a lot to cover today. Obviously, some important 0:00:31.880 --> 0:00:34.159 news that went who went out this week that effects 0:00:34.200 --> 0:00:36.239 probably a whole lot of How Money listeners. That's right. 0:00:36.320 --> 0:00:38.199 We'll definitely spend a good bit of time on that 0:00:38.200 --> 0:00:39.919 because there's a lot of nuance to what happened with 0:00:39.920 --> 0:00:42.199 with student loan forgiveness. But before we get to that, 0:00:42.240 --> 0:00:44.840 I wanted to mention that your girls and my girls, 0:00:45.120 --> 0:00:48.680 they have to wear uniforms to school these days, right, 0:00:48.720 --> 0:00:50.960 all the kids at your school. It's not just the girls. 0:00:51.000 --> 0:00:53.720 It's just that your girls are at of school where 0:00:53.760 --> 0:00:55.800 your girls are old enough. My girls are old enough, 0:00:55.800 --> 0:00:58.680 are you? Boys are are not yet in real school, 0:00:58.680 --> 0:01:01.400 so they still like boy at the school. When they 0:01:01.400 --> 0:01:04.760 go to school, they totally dude. Well, whereas our girls 0:01:04.800 --> 0:01:07.160 like nice and because uniforms. We see the pictures of 0:01:07.160 --> 0:01:08.760 them and they got like food all over their faces. 0:01:08.760 --> 0:01:11.560 They're sure like unsucked. And girls look like they know 0:01:11.600 --> 0:01:14.000 what's going on. Can I just say, as a parent, 0:01:14.360 --> 0:01:17.080 it's the greatest thing that ever happened having school uniforms 0:01:17.080 --> 0:01:20.200 because there's so much less fighting about what they were 0:01:20.240 --> 0:01:22.560 before the school all for the day thing. I mean, 0:01:22.720 --> 0:01:24.640 a couple of years ago we started having the girls 0:01:24.720 --> 0:01:27.640 light out their outfits the night before. That was helpful, 0:01:27.959 --> 0:01:29.680 but even still you would still kind of get into 0:01:29.720 --> 0:01:32.679 some of those arguments even then, even the not the 0:01:32.760 --> 0:01:35.360 night before. So it made it slightly less stressful because 0:01:35.400 --> 0:01:37.160 at least we're taking care of this at least not 0:01:37.480 --> 0:01:39.400 right before you're trying to rush out the door to school. 0:01:39.720 --> 0:01:42.000 But it didn't completely solve the problem. And in school 0:01:42.040 --> 0:01:45.399 uniforms totally for it. They're typically not terribly expensive, unless 0:01:45.480 --> 0:01:48.040 sometimes the school requires a particular name brand or a 0:01:48.120 --> 0:01:51.840 specific sort of uniform. Right, But I just wanted to 0:01:51.840 --> 0:01:54.800 mention that our r P t A had like a 0:01:55.600 --> 0:01:58.600 used school uniform sale and you could get I think 0:01:58.640 --> 0:02:00.960 tops for two bucks and bottoms three dollars or something 0:02:01.560 --> 0:02:05.040 insanely cheap, and so we stocked up. And the next 0:02:05.040 --> 0:02:07.000 time they have one of those sales, my girls will 0:02:07.040 --> 0:02:08.760 be bigger by then and so we'll stop up again. 0:02:09.000 --> 0:02:10.400 But These are the kind of things man, that that 0:02:10.760 --> 0:02:13.800 frugal folks like us to take advantage of because they 0:02:13.800 --> 0:02:16.960 can represent big savings. And you're also like reusing something, 0:02:17.040 --> 0:02:19.280 right and let go in the trash and sometimes well 0:02:19.280 --> 0:02:21.320 how did the there's some nice there's some nice stuff 0:02:21.320 --> 0:02:24.000 like nextually what we would have bought new as well? Yeah, 0:02:24.120 --> 0:02:25.960 well so how did the PTA get it? Is? Just 0:02:26.160 --> 0:02:28.200 is this from the lost and found from the previous year? 0:02:28.200 --> 0:02:29.800 I think it's lost and found. I think it's donations 0:02:29.800 --> 0:02:32.280 from other families who are like, hey, we've got a 0:02:32.400 --> 0:02:35.320 kid graduating, or or we're leaving the school, or it's 0:02:35.600 --> 0:02:38.280 it's different people who are donating old uniforms too. Yeah, 0:02:38.360 --> 0:02:40.160 our school did something similar to that. I think what 0:02:40.200 --> 0:02:42.119 they did with the lost and found from the previous years, 0:02:42.160 --> 0:02:44.440 they basically kept some of those uniforms on hand for 0:02:44.520 --> 0:02:47.960 families who might be in a position where they're struggling 0:02:48.000 --> 0:02:49.960 a little bit where they could potentially get those uniforms 0:02:50.000 --> 0:02:52.960 for for absolutely free. But but yeah, getting these things used, man, 0:02:53.000 --> 0:02:54.960 that's totally the way to go, because I mean we've 0:02:54.960 --> 0:02:58.720 got three girls now and forms yeah, I mean three 0:02:58.760 --> 0:03:01.320 times five, you know, like we're actually gonna have fifteen 0:03:01.480 --> 0:03:05.160 different sets of uniforms, and ideally, yeah, we wouldn't have 0:03:05.200 --> 0:03:07.640 to do laundry except for once on the weekends. But 0:03:07.919 --> 0:03:09.519 we're kind of like, you know what, let's maybe hold 0:03:09.560 --> 0:03:11.320 off until the next sale. The next time we come 0:03:11.360 --> 0:03:14.359 across a bunch of uniforms that someone's trying to unload 0:03:14.360 --> 0:03:17.200 for cheap, because it's like it's something like ninety percent 0:03:17.240 --> 0:03:19.600 off or eighty percent off versus what you pay on 0:03:19.639 --> 0:03:22.320 the store rack. Sometimes getting those things used, which is 0:03:22.320 --> 0:03:24.360 which is pretty sweet deal. And by the way, this 0:03:24.480 --> 0:03:26.400 is not a private school in case people wondering these are. 0:03:26.440 --> 0:03:29.200 These are both public schools public schools, but sometimes the 0:03:29.200 --> 0:03:31.840 public schools require uniforms. And I like it. Again, I 0:03:31.880 --> 0:03:34.240 like it from a housle at home standpoint, but also 0:03:34.320 --> 0:03:36.080 just while the kids are in school. I am all 0:03:36.120 --> 0:03:38.200 for freedom of expression and for kids to be able 0:03:38.200 --> 0:03:40.160 to express themselves through what they wear and stuff like that. 0:03:40.200 --> 0:03:44.000 But within two MAT's kids have neck tattoos. So there's 0:03:44.000 --> 0:03:46.840 that DOT is working on getting some I drop tear 0:03:46.920 --> 0:03:52.120 drop tattoos phrase for every you know, she's pretty hard, no, 0:03:52.240 --> 0:03:53.720 but I think it does help. I think it can 0:03:53.760 --> 0:03:56.240 help within that educational environment as well when it comes 0:03:56.240 --> 0:03:58.520 to learning. Agreed. All right, Well, while we're talking about education, 0:03:58.600 --> 0:04:00.600 let's let's get on the Friday flight, let's get through 0:04:00.680 --> 0:04:03.040 the on that note, most impactful story of this week 0:04:03.160 --> 0:04:06.160 for at least for folks in our audience, and that 0:04:06.280 --> 0:04:08.280 is about the student loan forgiveness that just took place. 0:04:08.480 --> 0:04:12.440 President Biden announced an executive action on Wednesday afternoon about 0:04:12.480 --> 0:04:14.040 student loans, and I don't know about you, I was 0:04:14.040 --> 0:04:15.920 like hitting refresh mat. I was like, what's gonna happen. 0:04:15.960 --> 0:04:19.560 I've kind of seen a couple of different outlets reporting 0:04:19.560 --> 0:04:22.560 what might happen, but they're rumblings. Folks knew that was 0:04:22.600 --> 0:04:24.840 going to be going down. Yep, it has happened, so 0:04:24.880 --> 0:04:26.640 a couple of weeks here and there, but I wanted 0:04:26.680 --> 0:04:28.520 to know, like right when it hits, and not because 0:04:28.600 --> 0:04:30.520 I have any skin of the game. I fortunately don't 0:04:30.520 --> 0:04:33.440 have any student loans anymore. But if you, dear listener, 0:04:33.440 --> 0:04:36.000 if you have student loans hanging around and you haven't 0:04:36.000 --> 0:04:38.680 heard about what happened this week at this point, I'd 0:04:38.720 --> 0:04:40.800 be shocked. But there's just a lot of information to 0:04:40.839 --> 0:04:43.159 cover and you might not be familiar with all the details. 0:04:43.160 --> 0:04:44.760 So that's what we want to kind of get into today. 0:04:45.240 --> 0:04:49.120 The big news is that in a three hundred billion 0:04:49.160 --> 0:04:52.520 dollar push, that's how much it's likelihood gonna cost taxpayers. 0:04:52.560 --> 0:04:56.039 All individual federal student loan borrowers with an a g 0:04:56.160 --> 0:04:58.920 I and adjusted gross income below a hundred and twenty 0:04:58.960 --> 0:05:02.120 five thousand dollars or two fifty thousand dollars as a 0:05:02.160 --> 0:05:04.800 married couple are going to receive ten thousand dollars of 0:05:04.839 --> 0:05:09.240 forgiveness for for their student loans. And interestingly enough, parent 0:05:09.279 --> 0:05:13.040 plus loans are included as well, Matt. But private student loans, now, 0:05:13.200 --> 0:05:15.560 if you refinanced into private student loans, there is no 0:05:15.600 --> 0:05:17.799 forgiveness for for you if you have those private loans. 0:05:18.080 --> 0:05:20.839 And uh, in addition to that, folks who had pell grants, 0:05:21.240 --> 0:05:24.800 which typically out to lower income borrowers, they're eligible for 0:05:24.839 --> 0:05:28.479 an extra ten thousand dollars of forgiveness. So when you 0:05:28.520 --> 0:05:30.960 kind of step back out take the big view, something 0:05:31.000 --> 0:05:33.880 like fifteen million people just had their entire student loan 0:05:33.920 --> 0:05:36.600 amount wiped out. And even besides that, it's a it's 0:05:36.600 --> 0:05:39.440 obviously a huge financial relief for tens of millions of 0:05:39.480 --> 0:05:42.440 other folks too. Yeah, and so this is great news 0:05:42.440 --> 0:05:44.360 for all of those folks. And I promise I'm not 0:05:45.120 --> 0:05:47.320 being a debbie downer here. I know there are a 0:05:47.360 --> 0:05:50.480 lot of folks who are like rejoicing, you know, who 0:05:50.480 --> 0:05:53.120 have had some of their student loans forgiven, potentially all 0:05:53.120 --> 0:05:55.680 of their student loans wiped out. But the reality is 0:05:55.960 --> 0:05:59.479 this announcement, it's sort of akin to treating symptoms, not 0:05:59.680 --> 0:06:02.480 the route of what we think is a much larger problem. 0:06:02.600 --> 0:06:05.480 It's like putting band aid on a gunshot wound. Yeah, exactly, 0:06:05.680 --> 0:06:08.119 bleeding will continue. The cost of college it's been rising 0:06:08.240 --> 0:06:10.640 far faster than the rate of inflation for decades, and 0:06:10.760 --> 0:06:13.120 just for giving a boatload of the debt that individuals 0:06:13.120 --> 0:06:17.000 currently hold, it does nothing to address that. Uh. In 0:06:17.040 --> 0:06:19.159 case some point front of the show, Ron Lieber from 0:06:19.160 --> 0:06:23.000 The Times, he just wrote about colleges producing graduates that 0:06:23.040 --> 0:06:25.680 make far less money than their counterparts who only have 0:06:25.680 --> 0:06:28.039 a high school degree. And this is even after years 0:06:28.080 --> 0:06:30.120 of being in the workforce, where you know you've had 0:06:30.160 --> 0:06:33.320 time to get acclimated. Sometimes those first couple of years 0:06:33.320 --> 0:06:35.120 after graduating college, you might still be on par with 0:06:35.160 --> 0:06:38.040 high school graduate counterparts. But you should quickly see six, 0:06:38.720 --> 0:06:42.400 Yeah you should, You should be making far more crazy. Yeah, so, 0:06:42.600 --> 0:06:44.200 I mean talk about being behind a ball, you know, 0:06:44.240 --> 0:06:47.560 taking on debt without superior job prospects because of an 0:06:47.560 --> 0:06:51.040 inferior higher education. This is a real problem going to college. 0:06:51.080 --> 0:06:53.040 It really is a great choice for some folks, but 0:06:53.120 --> 0:06:55.760 not for everyone. We all need to do a better 0:06:55.839 --> 0:06:58.760 job thinking through the value proposition of a degree before 0:06:59.240 --> 0:07:01.680 blindly encouraging folks to pursue getting one. We all need 0:07:01.720 --> 0:07:03.400 to ask the question, you know, well, the time, well, 0:07:03.440 --> 0:07:06.760 the money that we are willing to spend equal higher, 0:07:07.320 --> 0:07:09.800 higher salary down the road and off. I feel like 0:07:09.840 --> 0:07:12.800 we asked that, what's the anything else? And unfortunately, this forgiveness, 0:07:12.800 --> 0:07:15.360 I feel like, isn't going to encourage folks to do that, 0:07:15.400 --> 0:07:17.480 because there's always that sort of thought in the back 0:07:17.480 --> 0:07:19.360 of your mind of like, well, there's a chance that 0:07:19.760 --> 0:07:22.560 something might happen with it. Well, and it also incentivizes 0:07:22.600 --> 0:07:24.800 colleges to do absolutely nothing when it comes to what 0:07:24.800 --> 0:07:29.600 they're charging. And there's no institutional reform or kind of 0:07:29.760 --> 0:07:32.520 soul searching when it comes to what these colleges are providing. 0:07:32.520 --> 0:07:36.240 And you mentioned that the inflation rate of of a 0:07:36.320 --> 0:07:39.400 higher education has outpaced basically everything else. In recent decades, 0:07:39.400 --> 0:07:40.840 and that is true, and that will continue to be 0:07:40.880 --> 0:07:42.920 the case if these are the kind of policy measures 0:07:42.960 --> 0:07:45.360 that we're taking. But let's let's actually talk a little 0:07:45.360 --> 0:07:48.080 bit more about what happens inside of the student loan 0:07:48.160 --> 0:07:51.200 forgiveness and announcement Matt, because one question some folks might 0:07:51.240 --> 0:07:54.920 have is are their tax implications to this forgiveness, because 0:07:54.960 --> 0:07:57.680 sometimes there are, right if you're if you're you have 0:07:57.800 --> 0:08:01.080 debt forgiven, oftentimes you're you tax on the amount that 0:08:01.120 --> 0:08:02.640 was forgiven. But that is not going to be the 0:08:02.640 --> 0:08:05.040 case with this. You will not incur any tax burden 0:08:05.200 --> 0:08:07.880 on this forgiveness amounts. And and actually there's there's even 0:08:07.920 --> 0:08:10.480 more in this announcement because in addition to this headline 0:08:10.480 --> 0:08:13.640 forgiveness amount, the student loan payment pause has been extended 0:08:14.000 --> 0:08:16.600 through the end of the year. So payments will now 0:08:17.080 --> 0:08:21.720 maybe potentially perhaps begin in January. It's been Biden says, 0:08:23.680 --> 0:08:25.800 that's what has been said multiple times. We'll see what 0:08:25.840 --> 0:08:27.520 I see. Yeah, we'll see if that happens, But in 0:08:27.560 --> 0:08:30.480 all likelihood, I do believe that January payments are going 0:08:30.520 --> 0:08:32.400 to restart, and so how the money listeners should be 0:08:32.400 --> 0:08:35.480 prepared for the to resume those payments come the new year. 0:08:36.120 --> 0:08:38.679 The White House also announced new repayment plans that are 0:08:38.679 --> 0:08:41.600 going to cap your monthly payment at five percent of 0:08:41.640 --> 0:08:45.440 your discretionary monthly income, down from ten percent under the 0:08:45.440 --> 0:08:48.600 previous plans. This is probably my favorite thing actually, UH 0:08:48.640 --> 0:08:50.880 in the program, because there was like an alphabet soup 0:08:50.960 --> 0:08:53.400 of income based payment plans before, and now this is 0:08:53.400 --> 0:08:56.000 going to be the slam dunk repayment plan that's best 0:08:56.040 --> 0:08:58.280 for almost everyone. It's is gonna be easier for people 0:08:58.280 --> 0:09:01.280 to understand how it works. And instead of forgiveness after 0:09:01.280 --> 0:09:03.679 twenty years of on time payments, folks are gonna be 0:09:03.679 --> 0:09:06.280 able to have their loans eradicated after just ten under 0:09:06.280 --> 0:09:09.040 this plan. And so, yeah, there's a lot of details 0:09:09.120 --> 0:09:11.559 in this forgiveness action, and we'll link to the page 0:09:11.600 --> 0:09:13.760 on student named dot gov and and we'll actually cover 0:09:13.880 --> 0:09:16.320 more of this in our newsletter on Tuesday, because because 0:09:16.320 --> 0:09:17.720 there was more than just me to the eye in 0:09:17.880 --> 0:09:20.960 UH in a ten thousand dollar blanket forgiveness, Like, there's 0:09:20.960 --> 0:09:23.400 a lot of moving parts in this announcement, and so 0:09:23.400 --> 0:09:25.120 we'll do our best to kind of cover it all. 0:09:25.400 --> 0:09:27.760 That's right, but overall, this is great news for all 0:09:27.800 --> 0:09:30.720 of the student loan borrowers out there who are paying 0:09:30.760 --> 0:09:32.920 down that debt. Joel, let's go ahead and shift gears. 0:09:32.960 --> 0:09:35.439 Let's talk about TV. We saw that there's new data 0:09:35.679 --> 0:09:40.240 from Nielsen that shows that streaming has finally overtaken cable 0:09:40.280 --> 0:09:44.400 in terms of hours spent watching TV for the first time. Uh. 0:09:44.400 --> 0:09:46.640 And what this tells me is that there are way 0:09:46.679 --> 0:09:50.120 more people who love cable than I realized, because like 0:09:50.160 --> 0:09:52.040 I would have said that this would have happened years ago. 0:09:52.120 --> 0:09:55.040 The fact that there are still that many Up until recently, 0:09:55.160 --> 0:09:57.360 up until I guess last quarter or last month, there 0:09:57.360 --> 0:10:00.960 were still more people watching cable than there were watching streaming. 0:10:00.960 --> 0:10:03.400 It's partly a demographics thing, right, mind blowing. There's there's 0:10:03.440 --> 0:10:07.080 still a lot of fifty sixty, seventy something and they 0:10:07.160 --> 0:10:09.280 have kind of stuck with not all of them, right, 0:10:09.360 --> 0:10:11.840 but a much larger percentage of those hooks have stuck 0:10:11.840 --> 0:10:13.880 with cable. They haven't really made the leap, or maybe 0:10:13.880 --> 0:10:15.920 they've added Netflix into their life, but they didn't get 0:10:16.040 --> 0:10:19.120 slowly they've Yeah, maybe they are slowly kind of making 0:10:19.120 --> 0:10:21.520 that transition, making that switch. Like what I want to 0:10:21.520 --> 0:10:23.280 know is, like, what are they watching? What content is 0:10:23.280 --> 0:10:25.520 out there that you can't get it more affordably on 0:10:25.520 --> 0:10:27.920 one of the streaming c ann Plus is no longer 0:10:27.920 --> 0:10:29.679 around my friends, So then the only way to get 0:10:29.720 --> 0:10:31.560 your cn in fix is too is to have a 0:10:31.600 --> 0:10:34.920 cable subscription. But they're canceling their shows anyway. Uh. But 0:10:34.960 --> 0:10:36.440 one of the other things we saw as well is 0:10:36.480 --> 0:10:39.160 that a lot of streaming services are upping their monthly 0:10:39.280 --> 0:10:43.520 subscription prices. Disney they announced surprise increase of thirty percent 0:10:43.679 --> 0:10:46.600 just over a week ago now, and so unless you 0:10:46.640 --> 0:10:49.360 know you want to watch ads while streaming BLUEI, you're 0:10:49.360 --> 0:10:51.719 gonna have to pay that increased rate. That's going to 0:10:51.800 --> 0:10:54.440 be the only way to keep your recurrent monthly price 0:10:54.480 --> 0:10:56.400 of seven dollars and ninety nine cents. By the way, 0:10:56.400 --> 0:10:58.880 Blue season three is out and it is phenomenal. Oh yeah, 0:10:58.920 --> 0:11:00.640 it's it's it's better than all the other one if 0:11:00.640 --> 0:11:02.120 you have kids, and even if you don't have kids, 0:11:02.120 --> 0:11:04.319 it's it's like the best cartoon in the world, I 0:11:04.400 --> 0:11:07.720 think right now, it's pretty great. And Netflix they're still 0:11:07.720 --> 0:11:10.920 likely to raise its subscription price as it introduces an 0:11:10.960 --> 0:11:13.600 ad supported tier, which makes sense, you know, like some 0:11:13.640 --> 0:11:16.360 of these streaming companies they're spending huge amounts of money 0:11:16.400 --> 0:11:20.079 on new content that ends up living only behind their paywalls. 0:11:20.559 --> 0:11:22.400 We we actually we literally just covered this on the 0:11:22.400 --> 0:11:27.160 podcast recently, episode five forty two. We talked about streaming 0:11:27.520 --> 0:11:30.000 and we offered a lot of remedies to the problem 0:11:30.320 --> 0:11:33.880 of these increased streaming costs. But one of these considerations 0:11:33.920 --> 0:11:35.960 that needs to be on the table for money conscious 0:11:36.000 --> 0:11:38.800 folks out there is to consider eliminating at least one 0:11:38.880 --> 0:11:41.679 or two of these streaming services from your life. If 0:11:41.679 --> 0:11:43.640 there are ways that you can be a little more 0:11:43.720 --> 0:11:47.320 choosy with the content that you are consuming, that is 0:11:47.320 --> 0:11:50.920 what we're gonna recommend. Plus just watching lest TV generally speaking. 0:11:51.040 --> 0:11:53.400 When we did that episode, what was it, something like 0:11:53.760 --> 0:11:56.199 close to four hours a day the average American watches 0:11:56.600 --> 0:11:59.760 of TV. How it's how it's a hobby basically. I mean, 0:12:00.080 --> 0:12:02.440 you consider sleeping hours and TV hours, that's half your 0:12:02.480 --> 0:12:06.160 life right there. It's insane that we spend that much 0:12:06.160 --> 0:12:08.439 time in front of the television. Some people more than that, 0:12:08.440 --> 0:12:11.600 because that's the average, right, So yeah, watching less TV 0:12:11.679 --> 0:12:13.920 in general sedentary basically, Like that's the other part is 0:12:13.920 --> 0:12:15.600 that if you're on a treadmill watching TV it's a 0:12:15.600 --> 0:12:18.080 different stuff, like, like, what is it? I guarantee it's 0:12:18.120 --> 0:12:20.160 just the tiny, tiny sliver of those people who are 0:12:20.160 --> 0:12:22.480 actually walking on a treadmill while watching TV. But I 0:12:22.480 --> 0:12:24.640 had a first did that just sitting there. I think 0:12:24.640 --> 0:12:26.920 it's a perfect way to reward yourself. If you are 0:12:27.120 --> 0:12:29.040 going to get on the treadmill or something and you 0:12:29.080 --> 0:12:30.920 are going to work out while watching TV, go for it. 0:12:30.960 --> 0:12:32.800 Like I like to listen to podcast or music when 0:12:32.840 --> 0:12:35.480 I'm working out, but it's uh, I think that's a 0:12:35.520 --> 0:12:38.200 reasonable choice totally. But if your case's dad does that 0:12:38.280 --> 0:12:40.320 just on the couch, he gets something elliptical and he 0:12:40.360 --> 0:12:42.199 watches a movie while he just like plugs away for 0:12:42.280 --> 0:12:44.440 only and a half, I like it nicely done. Greg, 0:12:44.520 --> 0:12:47.360 all right, Well, one more thing that we should mention 0:12:47.440 --> 0:12:50.599 specifically when it comes to watching content is if you 0:12:50.679 --> 0:12:52.880 prefer to watch movies but then you prefer to watch 0:12:52.960 --> 0:12:55.000 them in the theater, there's actually a chance you're gonna 0:12:55.000 --> 0:12:56.960 be able to spend less money doing that in the 0:12:56.960 --> 0:12:59.880 near future because movie passed. I don't remember that startup 0:13:00.040 --> 0:13:01.840 you passed. I do. I never joined it because I 0:13:01.880 --> 0:13:04.480 never really go watch movies in the theater. But it's 0:13:04.520 --> 0:13:07.280 coming back from the dead. It's like a zombie company 0:13:07.320 --> 0:13:10.120 that's coming back to life, and it's set to relaunch 0:13:10.120 --> 0:13:12.640 in just over a week. And uh, yeah, we have 0:13:12.720 --> 0:13:14.920 no idea how long movie Pass is gonna last this 0:13:14.960 --> 0:13:17.960 time because their business model last time around was awesome 0:13:18.000 --> 0:13:21.160 for consumers, but not so great for movie Pass continuing 0:13:21.200 --> 0:13:25.000 to exist because they were offering one free movie every 0:13:25.120 --> 0:13:28.360 day for a monthly fee of which I don't know 0:13:28.360 --> 0:13:30.559 where you go see movies, but that's less than the 0:13:30.600 --> 0:13:34.760 price of going to see one movie theater here. Yeah, 0:13:34.840 --> 0:13:38.680 that's like totally a steal for a movie ticket. So 0:13:38.760 --> 0:13:40.120 this was less than that and you can go see 0:13:40.120 --> 0:13:42.600 a bunch of movies. It just wasn't sustainable. Um, And 0:13:42.640 --> 0:13:45.120 since the movie Pass collapse, a lot of major movie 0:13:45.200 --> 0:13:48.199 chains have kind of launched their own flat fee multiple 0:13:48.240 --> 0:13:50.880 movie initiatives, So maybe a movie Pass isn't gonna be 0:13:50.880 --> 0:13:53.360 as good of a deal. But they're apparently sets a 0:13:53.400 --> 0:13:56.000 relaunch with different tiers of ten and thirty bucks. So 0:13:56.240 --> 0:13:57.679 I don't know. If movies are your thing and you 0:13:57.720 --> 0:14:00.000 want to pay less money, we don't know the specifics, 0:14:00.200 --> 0:14:02.319 but movie Pass might be your jam, that's right. Yeah, 0:14:02.400 --> 0:14:04.120 just do the math, and it might make a lot 0:14:04.120 --> 0:14:06.320 of sense for you. It might make fiscal sense for 0:14:06.360 --> 0:14:08.360 you to do that. And this advice is coming right 0:14:08.360 --> 0:14:10.880 after we told you to consume lest TV. But like, 0:14:10.920 --> 0:14:12.720 going to the actual movie, in my mind, is more 0:14:12.760 --> 0:14:15.200 of an experience. You definitely have to get off your butt. 0:14:15.240 --> 0:14:17.280 You gotta get off the couch. Maybe you could ride 0:14:17.280 --> 0:14:20.480 your bike to the movie theater. Uh. That way, you're 0:14:20.520 --> 0:14:23.200 not wasting any gas, you get a little bit of exercise, 0:14:23.240 --> 0:14:25.080 you meet up with some friends there. To me, that 0:14:25.120 --> 0:14:27.200 sounds like a lot of fun. Also, I think going 0:14:27.240 --> 0:14:30.000 to the movie theater every single day just because you 0:14:30.120 --> 0:14:32.960 have that movie pass, because you've got that membership, Uh, 0:14:33.040 --> 0:14:35.040 sounds very time consuming. You know, like like this is 0:14:35.080 --> 0:14:37.640 a young person's game. Maybe the once you get tired 0:14:37.680 --> 0:14:39.240 of movies after a while too, would she's be like, 0:14:39.400 --> 0:14:43.360 I gotta go just to make it worried if if 0:14:43.360 --> 0:14:45.240 I did have movie pass, I guarantee that I'm going 0:14:45.320 --> 0:14:46.920 to see every single movie. And that comes out just 0:14:46.960 --> 0:14:50.160 become yourself. Yeah, in the same way crappy ones, it's 0:14:50.200 --> 0:14:52.400 it's some cost falacy sort of well, it's it's sort 0:14:52.440 --> 0:14:54.800 of like leftovers. If there are leftovers in my fridge. 0:14:54.840 --> 0:14:57.040 Even if it's not something I'm super excited about. You 0:14:57.080 --> 0:14:58.760 know what, we already paid for that thing. It still 0:14:58.800 --> 0:15:02.120 provides calories and urishment nutrition to my body. I'm going 0:15:02.160 --> 0:15:05.600 to eat it. But I've got kids now, and so 0:15:05.720 --> 0:15:07.880 going to the movie theater isn't something I've done in 0:15:07.920 --> 0:15:11.680 a long long time. Kids take up a lot of time. 0:15:11.960 --> 0:15:14.360 They also cost a lot of money, and that is 0:15:14.400 --> 0:15:17.400 actually a story we're gonna get to right after this break. 0:15:26.600 --> 0:15:29.120 All right, man, it's time now to talk about expensive children. 0:15:29.480 --> 0:15:32.680 This is the ludicrous headline of the week, and apparently 0:15:32.760 --> 0:15:35.480 it now costs three thousand dollars to raise a child. 0:15:35.520 --> 0:15:39.440 This this headline was based on analysis from the Brookings Institution, 0:15:39.760 --> 0:15:43.080 and when I read it, I almost put to my 0:15:43.120 --> 0:15:46.320 pants because I was like, I've got three children, soilers 0:15:46.560 --> 0:15:48.680 costs me a million dollars? Right if when you add 0:15:48.680 --> 0:15:51.920 those those numbers up one point two baby, right? Well yeah, 0:15:51.960 --> 0:15:54.720 for you exactly when the average middle class couple is 0:15:54.720 --> 0:15:57.040 going to spend more than three hundred and ten thousand 0:15:57.080 --> 0:15:59.640 dollars on a child just raising them up until the 0:15:59.640 --> 0:16:02.920 age of seventeen. So yes, this number is crazy. Does 0:16:02.960 --> 0:16:06.560 not include the cost of college in addition to the 0:16:06.720 --> 0:16:09.360 cost um raising them. That's that's an average annual cost 0:16:09.360 --> 0:16:12.440 of more than eighteen tho dollars per kiddo. That's basically 0:16:12.560 --> 0:16:14.840 it's a mortgage payment, yeah, every single month. And yeah, 0:16:14.880 --> 0:16:17.200 if you have a few we were talking about a 0:16:17.280 --> 0:16:19.640 luxury penthouse or something like that. But you don't get 0:16:19.680 --> 0:16:21.640 the sweet pool to swimming. You just get the love 0:16:21.720 --> 0:16:24.640 and affection. But of course, inflation has adjusted this this 0:16:24.720 --> 0:16:28.160 number upwards significantly over the past couple of years, raising 0:16:28.200 --> 0:16:31.560 the cost of everything from diapers to groceries and Matt 0:16:31.560 --> 0:16:34.280 I'm I'm sure how much it costs to raise kids 0:16:34.400 --> 0:16:37.000 is largely dependent on where people live and just a 0:16:37.000 --> 0:16:39.560 slew of other factors that a lot of us are 0:16:39.560 --> 0:16:42.080 actually largely in control of. We see this headline number 0:16:42.080 --> 0:16:45.680 and maybe it feels disempowering, but I kind of thought 0:16:45.720 --> 0:16:48.760 about it differently. I think, um, so many of the things, 0:16:48.760 --> 0:16:51.680 like whether it's just small ticket expenses like buying name 0:16:51.720 --> 0:16:54.600 brand snacks, or if you're going to get those used 0:16:54.600 --> 0:16:57.040 school uniforms instead of the brand new ones, you know, 0:16:57.160 --> 0:16:58.880 all the way up to bigger expenses like the kind 0:16:58.880 --> 0:17:01.040 of camps that you're sending your kids too, or if 0:17:01.040 --> 0:17:03.000 you buy them a car, or if you're choosing to 0:17:03.000 --> 0:17:04.800 live in a smaller house and and letting them sleep 0:17:04.840 --> 0:17:07.120 in the same room. Like, those are decisions you can 0:17:07.119 --> 0:17:09.600 make that will greatly lessen the amount of money that 0:17:09.680 --> 0:17:12.240 you're going to personally spend raising kids. You obviously you 0:17:12.280 --> 0:17:14.800 got to feed them. But I think our suggestion would 0:17:14.800 --> 0:17:17.720 be to take that three dollar number with a grain 0:17:17.760 --> 0:17:19.879 of salt. There are things that you can do to 0:17:20.040 --> 0:17:22.840 ensure that opting to have children isn't going to set 0:17:22.880 --> 0:17:24.840 you back to that extent. I think people might read that, 0:17:24.920 --> 0:17:27.080 especially if they're like, I'm on the fence about whether 0:17:27.080 --> 0:17:28.520 I want to have children. They'll read that and they'll 0:17:28.520 --> 0:17:30.879 be like, Nope, that can durish them. Yeah, basically, And 0:17:30.960 --> 0:17:33.240 I don't think that's good because I think, um, one, 0:17:33.320 --> 0:17:34.840 it's not good for our society. It's not good for 0:17:34.880 --> 0:17:37.479 our country when it comes to maintaining that replacement rate. 0:17:37.600 --> 0:17:40.120 And ultimately we would say that kids um are well 0:17:40.160 --> 0:17:42.680 worth every single dollar. Is sure you don't have to 0:17:42.720 --> 0:17:47.400 spend as much as this Brookings Institute study says you're 0:17:47.400 --> 0:17:49.359 gonna have to spend. There are a lot of ways 0:17:49.359 --> 0:17:52.560 for you to curb curb that cost. And either way, man, 0:17:52.640 --> 0:17:54.840 it's worth having kids no matter what. Well, and it's 0:17:54.840 --> 0:17:57.359 it's a personal decision that you need to make, right, 0:17:57.400 --> 0:18:00.320 I mean, like, yes, you need to be wise and 0:18:00.320 --> 0:18:02.480 and look at the numbers and to do some forecasting 0:18:02.480 --> 0:18:04.000 and think about what your life is gonna look like 0:18:04.240 --> 0:18:06.159 were you to have kids and if you can afford it. 0:18:06.560 --> 0:18:09.320 We are all about potential parents being responsible right when 0:18:09.320 --> 0:18:12.400 it comes to like crunching the numbers. But simultaneously, it's 0:18:12.400 --> 0:18:14.760 not just financial reasons that you do or don't have kids. 0:18:15.240 --> 0:18:17.680 Um And for all of the different planners out there 0:18:17.680 --> 0:18:19.560