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<v Speaker 1>Let's say good morning now to the host of How

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<v Speaker 1>to Money on KFI, Joel Largsguard. So, Joel, I just

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<v Speaker 1>mentioned tariffs and how Mexico and Canada get a pause,

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<v Speaker 1>but I thought maybe we should talk about tariffs and

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<v Speaker 1>you know, what do they mean to you and me

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<v Speaker 1>on a daily basis?

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<v Speaker 3>Sure?

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<v Speaker 2>Yeah, from a personal finance perspective, there was there was

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<v Speaker 2>like a lot up in the area yesterday. Right, it

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<v Speaker 2>felt like some whiplash going on, some tariff whiplash, and

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<v Speaker 2>you know, the over the weekend it was like, hey, yeah,

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<v Speaker 2>it's it's going down. We're going to implement tariffs on China, Canada,

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<v Speaker 2>and Mexico. And this is just kind of a departure

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<v Speaker 2>too from President Trump's tact in his first administration, where

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<v Speaker 2>it was essentially kind of tariffs against adversaries, and now

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<v Speaker 2>it's tariffs against nations bordering nations that we're friendly with

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<v Speaker 2>in order to kind of get concessions. He got those concessions,

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<v Speaker 2>and so the tariffs are at least punted for a month,

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<v Speaker 2>depending on what else he's trying to bargain for. But

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<v Speaker 2>the truth is, if these tariffs went into effect, if

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<v Speaker 2>they go into effect next month, the goods, price of

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<v Speaker 2>goods and services will go up on a whole lot

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<v Speaker 2>of things. And it really tariffs essentially, when you know,

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<v Speaker 2>they boil down to attacks on consumers on everyday American

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<v Speaker 2>So there's been a lot written about what would go

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<v Speaker 2>up in price.

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<v Speaker 3>It's a lot of things. Avocado's maple syrup.

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<v Speaker 2>But then it's bigger things too, like the price of cars,

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<v Speaker 2>because all of these components that go into making cars, well,

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<v Speaker 2>they fly across the border, across Canada and Mexico and

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<v Speaker 2>back again. And so the tariffs that would be instituted

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<v Speaker 2>on some of these items is going to make a

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<v Speaker 2>lot of things more expensive. I think lumber, concrete, like

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<v Speaker 2>things are going to get more expensive. Renovating your house.

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<v Speaker 2>The quote you got last week, it might not be

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<v Speaker 2>good a month from now, it might have gone up

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<v Speaker 2>quite a bit. So these are the kind of things

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<v Speaker 2>that people should at least notice and be aware of.

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<v Speaker 1>Okay, And when you said that the tariffs would kick in,

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<v Speaker 1>you know, and again they're on pause right now, at

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<v Speaker 1>least with Mexico and Canada. Would the effect be immediate

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<v Speaker 1>or might it be like three months down the road

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<v Speaker 1>or what kind of repercussions, are they there?

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<v Speaker 3>Yeah, that depends.

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<v Speaker 2>So some businesses have in expectation of these tariffs, they

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<v Speaker 2>have stockpiled certain things, they have maybe pre bought in

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<v Speaker 2>hopes to avoid paying extra for some of the supply

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<v Speaker 2>chain goods and services that they're buying for whatever it

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<v Speaker 2>is they're producing. So some people have kind of gotten

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<v Speaker 2>out of ahead of it. It might be a slow

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<v Speaker 2>trickle to implement these price increases as finally they have

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<v Speaker 2>to make new orders and the tear increased prices of

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<v Speaker 2>tariffs hit them. But one thing is for sure, those

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<v Speaker 2>tariffs do ultimately pass on to the consumer. So we've

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<v Speaker 2>talked about, you know, inflation, and inflation has been you know,

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<v Speaker 2>at least being curbed meaningfully since the you know, since

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<v Speaker 2>a couple of years ago. But these tariffs could for

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<v Speaker 2>sure impact inflation. So it's one of those things where

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<v Speaker 2>you kind of can't have your cake and eat it

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<v Speaker 2>too implement the tariffs as a geopolitical strategy and then

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<v Speaker 2>also hope to take inflation at the same time.

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<v Speaker 3>That's just not how it works.

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<v Speaker 1>Okay. Now, the tariffs did go into effect with China,

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<v Speaker 1>is it? Everything that comes over from China gets a

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<v Speaker 1>ten percent tariff.

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<v Speaker 3>Yeah, that's what it's looking like.

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<v Speaker 2>So last time too, it was it was targeted tariffs, right,

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<v Speaker 2>it was specific items. And it certainly seems like these

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<v Speaker 2>these tariffs on China and these tariffs on mexic they're

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<v Speaker 2>being less strategically implemented and it's more of a broad.

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<v Speaker 3>Based strategy as well.

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<v Speaker 2>So yeah, and there are certain exemptions, like, for instance,

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<v Speaker 2>with Canada, there was going to be a smaller tariff

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<v Speaker 2>on oil, but on oil imports. So yeah, it's again,

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<v Speaker 2>this is a really scattershot strategy. It's quickly moving, as

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<v Speaker 2>we saw yesterday, and where this ends up is anybody's guess.

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<v Speaker 2>It certainly seems like it's more of a negotiating tactic

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<v Speaker 2>than really this desire to make tariffs hurt and impact consumers.

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<v Speaker 1>At the end of the day, you know that Trump

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<v Speaker 1>likes to make a deal. Okay, so let's move on

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<v Speaker 1>really quick. I know we don't have a lot of time,

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<v Speaker 1>but I want to touch on this. You said that

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<v Speaker 1>parents are basically gaming the system to improve their kids'

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<v Speaker 1>credit stores, and I'm wondering if first explain that and

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<v Speaker 1>then whether it's a bad thing that they're doing.

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<v Speaker 2>Yeah, So there was this article in the Atlantic and

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<v Speaker 2>it was kind of actually lamenting the fact that some

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<v Speaker 2>parents are gaming the system and they're helping their kids. Well, okay,

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<v Speaker 2>so mostly one of the best ways to do this

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<v Speaker 2>is to add your child as an authorized user to

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<v Speaker 2>your credit card. If you handle your credit card responsibly,

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<v Speaker 2>so if you pay your balance off on time and

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<v Speaker 2>in full, and let's say you have a high credit

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<v Speaker 2>limit and you only use a small fraction of the

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<v Speaker 2>overall limit that you have been given by the credit

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<v Speaker 2>card companies, well, if you add your child as an

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<v Speaker 2>authorized user. And every credit card issuer has kind of

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<v Speaker 2>different standards for this. Some will say, oh, you can

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<v Speaker 2>only do it if your child is over thirteen. Others

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<v Speaker 2>you can add them as a newborn, and so it's

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<v Speaker 2>kind of cool. You can have a baby on Tuesday

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<v Speaker 2>and on Wednesday Adam as an author user and they're

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<v Speaker 2>building a healthy credit score, so by the time they

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<v Speaker 2>leave the nest, it looks like they have this immaculate

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<v Speaker 2>credit history. And so sav savvy parents are saying, let

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<v Speaker 2>me help my kid out in this way, because credit

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<v Speaker 2>scores impact almost everything we do in our daily lives.

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<v Speaker 1>Okay, but isn't that sort of like doing your kids

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<v Speaker 1>homework for them. Like I had to build my credit,

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<v Speaker 1>and I have great credit now, but I learned about

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<v Speaker 1>it early and I started building it early, you know,

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<v Speaker 1>I mean, like it's something that I accomplished.

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<v Speaker 3>Yeah.

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<v Speaker 2>Well, I do think this is one of those gaming

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<v Speaker 2>like incentives matter, and people are going to do whatever

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<v Speaker 2>they can to give their kids a lagup. Think about

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<v Speaker 2>what parents do to try to get their kids into

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<v Speaker 2>the right college, all the extra tutoring and the testing

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<v Speaker 2>and stuff like that, and so I don't see it.

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<v Speaker 2>I don't necessarily want my kids to learn the hard

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<v Speaker 2>way on everything, although certainly I do want them to

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<v Speaker 2>learn the hard way on some stuff. But I do

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<v Speaker 2>think that adding your kid as an authorized user while

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<v Speaker 2>you're teaching them all the important stuff about how to

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<v Speaker 2>handle credit, well, I just think that that can be savvy.

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<v Speaker 3>I think it could be smart.

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<v Speaker 1>So as long as you're teaching the kids as you

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<v Speaker 1>go and not just handing them something.

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<v Speaker 3>Yeah, And I think it's really different.

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<v Speaker 2>I think very differently about kind of setting them up

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<v Speaker 2>from a financial perspective and stocking away tons of your

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<v Speaker 2>own money for their future. Sometimes that can lead to entitlement,

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<v Speaker 2>but the credit thing is a little bit different and

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<v Speaker 2>just being a little savvy around the system because it

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<v Speaker 2>is so impactful to almost every financial decision we make,

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<v Speaker 2>even like renting an apartment, and in not in California,

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<v Speaker 2>but in many states, getting insurance for your car. You're

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<v Speaker 2>going to pay more if you have a bad credit score.

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<v Speaker 2>So yeah, help your kid get a good credit score

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<v Speaker 2>and then talk to them about the importance of keeping

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<v Speaker 2>it good.

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<v Speaker 1>Okay, so you're helping them start out on the right foot. Okay,

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<v Speaker 1>I can get on board with.

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<v Speaker 3>Them, Okay. Joel Larsgard the host.

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<v Speaker 1>Of how to Money on KFI and for some more

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<v Speaker 1>great advice on how to handle your money. You can

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<v Speaker 1>listen to Joel noon to two on Sundays right here

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<v Speaker 1>on KFI. Can also follow them at how to Money. Joel,

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<v Speaker 1>thank you so much. We'll talk to you next week.

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<v Speaker 3>All right, sounds good. Thanks Amy,