Speaker 1: Let's say good morning now to the host of How
Speaker 1: to Money on KFI, Joel Largsguard. So, Joel, I just
Speaker 1: mentioned tariffs and how Mexico and Canada get a pause,
Speaker 1: but I thought maybe we should talk about tariffs and
Speaker 1: you know, what do they mean to you and me
Speaker 1: on a daily basis?
Speaker 3: Sure?
Speaker 2: Yeah, from a personal finance perspective, there was there was
Speaker 2: like a lot up in the area yesterday. Right, it
Speaker 2: felt like some whiplash going on, some tariff whiplash, and
Speaker 2: you know, the over the weekend it was like, hey, yeah,
Speaker 2: it's it's going down. We're going to implement tariffs on China, Canada,
Speaker 2: and Mexico. And this is just kind of a departure
Speaker 2: too from President Trump's tact in his first administration, where
Speaker 2: it was essentially kind of tariffs against adversaries, and now
Speaker 2: it's tariffs against nations bordering nations that we're friendly with
Speaker 2: in order to kind of get concessions. He got those concessions,
Speaker 2: and so the tariffs are at least punted for a month,
Speaker 2: depending on what else he's trying to bargain for. But
Speaker 2: the truth is, if these tariffs went into effect, if
Speaker 2: they go into effect next month, the goods, price of
Speaker 2: goods and services will go up on a whole lot
Speaker 2: of things. And it really tariffs essentially, when you know,
Speaker 2: they boil down to attacks on consumers on everyday American
Speaker 2: So there's been a lot written about what would go
Speaker 2: up in price.
Speaker 3: It's a lot of things. Avocado's maple syrup.
Speaker 2: But then it's bigger things too, like the price of cars,
Speaker 2: because all of these components that go into making cars, well,
Speaker 2: they fly across the border, across Canada and Mexico and
Speaker 2: back again. And so the tariffs that would be instituted
Speaker 2: on some of these items is going to make a
Speaker 2: lot of things more expensive. I think lumber, concrete, like
Speaker 2: things are going to get more expensive. Renovating your house.
Speaker 2: The quote you got last week, it might not be
Speaker 2: good a month from now, it might have gone up
Speaker 2: quite a bit. So these are the kind of things
Speaker 2: that people should at least notice and be aware of.
Speaker 1: Okay, And when you said that the tariffs would kick in,
Speaker 1: you know, and again they're on pause right now, at
Speaker 1: least with Mexico and Canada. Would the effect be immediate
Speaker 1: or might it be like three months down the road
Speaker 1: or what kind of repercussions, are they there?
Speaker 3: Yeah, that depends.
Speaker 2: So some businesses have in expectation of these tariffs, they
Speaker 2: have stockpiled certain things, they have maybe pre bought in
Speaker 2: hopes to avoid paying extra for some of the supply
Speaker 2: chain goods and services that they're buying for whatever it
Speaker 2: is they're producing. So some people have kind of gotten
Speaker 2: out of ahead of it. It might be a slow
Speaker 2: trickle to implement these price increases as finally they have
Speaker 2: to make new orders and the tear increased prices of
Speaker 2: tariffs hit them. But one thing is for sure, those
Speaker 2: tariffs do ultimately pass on to the consumer. So we've
Speaker 2: talked about, you know, inflation, and inflation has been you know,
Speaker 2: at least being curbed meaningfully since the you know, since
Speaker 2: a couple of years ago. But these tariffs could for
Speaker 2: sure impact inflation. So it's one of those things where
Speaker 2: you kind of can't have your cake and eat it
Speaker 2: too implement the tariffs as a geopolitical strategy and then
Speaker 2: also hope to take inflation at the same time.
Speaker 3: That's just not how it works.
Speaker 1: Okay. Now, the tariffs did go into effect with China,
Speaker 1: is it? Everything that comes over from China gets a
Speaker 1: ten percent tariff.
Speaker 3: Yeah, that's what it's looking like.
Speaker 2: So last time too, it was it was targeted tariffs, right,
Speaker 2: it was specific items. And it certainly seems like these
Speaker 2: these tariffs on China and these tariffs on mexic they're
Speaker 2: being less strategically implemented and it's more of a broad.
Speaker 3: Based strategy as well.
Speaker 2: So yeah, and there are certain exemptions, like, for instance,
Speaker 2: with Canada, there was going to be a smaller tariff
Speaker 2: on oil, but on oil imports. So yeah, it's again,
Speaker 2: this is a really scattershot strategy. It's quickly moving, as
Speaker 2: we saw yesterday, and where this ends up is anybody's guess.
Speaker 2: It certainly seems like it's more of a negotiating tactic
Speaker 2: than really this desire to make tariffs hurt and impact consumers.
Speaker 1: At the end of the day, you know that Trump
Speaker 1: likes to make a deal. Okay, so let's move on
Speaker 1: really quick. I know we don't have a lot of time,
Speaker 1: but I want to touch on this. You said that
Speaker 1: parents are basically gaming the system to improve their kids'
Speaker 1: credit stores, and I'm wondering if first explain that and
Speaker 1: then whether it's a bad thing that they're doing.
Speaker 2: Yeah, So there was this article in the Atlantic and
Speaker 2: it was kind of actually lamenting the fact that some
Speaker 2: parents are gaming the system and they're helping their kids. Well, okay,
Speaker 2: so mostly one of the best ways to do this
Speaker 2: is to add your child as an authorized user to
Speaker 2: your credit card. If you handle your credit card responsibly,
Speaker 2: so if you pay your balance off on time and
Speaker 2: in full, and let's say you have a high credit
Speaker 2: limit and you only use a small fraction of the
Speaker 2: overall limit that you have been given by the credit
Speaker 2: card companies, well, if you add your child as an
Speaker 2: authorized user. And every credit card issuer has kind of
Speaker 2: different standards for this. Some will say, oh, you can
Speaker 2: only do it if your child is over thirteen. Others
Speaker 2: you can add them as a newborn, and so it's
Speaker 2: kind of cool. You can have a baby on Tuesday
Speaker 2: and on Wednesday Adam as an author user and they're
Speaker 2: building a healthy credit score, so by the time they
Speaker 2: leave the nest, it looks like they have this immaculate
Speaker 2: credit history. And so sav savvy parents are saying, let
Speaker 2: me help my kid out in this way, because credit
Speaker 2: scores impact almost everything we do in our daily lives.
Speaker 1: Okay, but isn't that sort of like doing your kids
Speaker 1: homework for them. Like I had to build my credit,
Speaker 1: and I have great credit now, but I learned about
Speaker 1: it early and I started building it early, you know,
Speaker 1: I mean, like it's something that I accomplished.
Speaker 3: Yeah.
Speaker 2: Well, I do think this is one of those gaming
Speaker 2: like incentives matter, and people are going to do whatever
Speaker 2: they can to give their kids a lagup. Think about
Speaker 2: what parents do to try to get their kids into
Speaker 2: the right college, all the extra tutoring and the testing
Speaker 2: and stuff like that, and so I don't see it.
Speaker 2: I don't necessarily want my kids to learn the hard
Speaker 2: way on everything, although certainly I do want them to
Speaker 2: learn the hard way on some stuff. But I do
Speaker 2: think that adding your kid as an authorized user while
Speaker 2: you're teaching them all the important stuff about how to
Speaker 2: handle credit, well, I just think that that can be savvy.
Speaker 3: I think it could be smart.
Speaker 1: So as long as you're teaching the kids as you
Speaker 1: go and not just handing them something.
Speaker 3: Yeah, And I think it's really different.
Speaker 2: I think very differently about kind of setting them up
Speaker 2: from a financial perspective and stocking away tons of your
Speaker 2: own money for their future. Sometimes that can lead to entitlement,
Speaker 2: but the credit thing is a little bit different and
Speaker 2: just being a little savvy around the system because it
Speaker 2: is so impactful to almost every financial decision we make,
Speaker 2: even like renting an apartment, and in not in California,
Speaker 2: but in many states, getting insurance for your car. You're
Speaker 2: going to pay more if you have a bad credit score.
Speaker 2: So yeah, help your kid get a good credit score
Speaker 2: and then talk to them about the importance of keeping
Speaker 2: it good.
Speaker 1: Okay, so you're helping them start out on the right foot. Okay,
Speaker 1: I can get on board with.
Speaker 3: Them, Okay. Joel Larsgard the host.
Speaker 1: Of how to Money on KFI and for some more
Speaker 1: great advice on how to handle your money. You can
Speaker 1: listen to Joel noon to two on Sundays right here
Speaker 1: on KFI. Can also follow them at how to Money. Joel,
Speaker 1: thank you so much. We'll talk to you next week.
Speaker 3: All right, sounds good. Thanks Amy,