00:12
Peter Dunn
Fire. The champ is here. The champ is here. I hit the blip at the beginning of the show. I never hit it. Hello, everybody. It's pretty dopey. The platter right here. The bad ladder. Hey, Dame.
00:24
Damian Dunn
Have no idea how you did that, but it won't be repeated next week.
00:28
Peter Dunn
No, there's a 0% chance it got real lucky. I think I even caught your laughter on the track before it happened because it looked like it was going to mess up pretty badly.
00:38
Damian Dunn
Well, then edit that out at the beginning. That's just one more edit.
00:41
Peter Dunn
No, I'm not going to do that. Dame, welcome to the show. As of now, there's no one on the live stream. Now I had to reconnect the Pete the Planner Facebook page. Live. There's zero viewers right now, as well as YouTube. So very popular show here on the Pete the Planner radio network climbing the charts. We do have, like, ten radio affiliates, though, so whatever.
01:05
Damian Dunn
Yeah, that'd be pretty cool if we shouted them out every once in a while.
01:09
Peter Dunn
No, not this week. Dame, literally no one is here. I don't know if it's wrong, if it's not connected, and I arguably don't care. No offense. Anyone who joins us every week, maybe.
01:19
Damian Dunn
They all organized and they decided to play a joke on it.
01:21
Peter Dunn
Here they come. Here they come. Hi, everybody. We see you joining now. Mark Zuckerberg was probably mad at me for all the trash I talk about Facebook. And so now we're back. Dame, on the show this week, we actually did a little pre production exchange of ideas. We've got three beautiful topics, and they are as followed. Segment one will be, should you opt out of the advanced child tax credit? Okay. Segment two is this the greatest time ever for Hustlers? And segment three, why are these all questions? Did you notice this?
02:01
Damian Dunn
No, I hadn't, but that's embarrassing.
02:04
Peter Dunn
Segment three is, will shifting post pandemic behavioral trends tank certain industries? Find out next on the Pay the Blast.
02:16
Damian Dunn
It's like you're writing teases for new segments.
02:18
Peter Dunn
I know. Hi, Mike. Thanks for joining us, fellers. Okay, Dean will start the show because after this, I've got to edit the show, and then I have a business development meeting, and we're having snacks delivered.
02:32
Damian Dunn
Oh, man.
02:33
Peter Dunn
Yeah, but all the beer that we had in the fridge here at the office is pre pandemic beer. So it's all like skunky. And I've not bought more beer for the fridge here at the office.
02:43
Damian Dunn
How much time do you have between this and the meeting?
02:46
Peter Dunn
I don't I should just send someone else who's going to be in the meeting to go buy a spear.
02:49
Damian Dunn
Yeah.
02:51
Peter Dunn
Okay. Three, two I'm not ready.
02:53
Damian Dunn
Hold on.
02:55
Peter Dunn
Okay, ready? Three, two, one. This week on The Pete the Planner Show, we answer your money questions. Here's how the show works. You email us, askpete@petetheplanner.com that's. Ask Pete@petetheplanner.com. And when you email us, we may email you back. We may talk to you. Joining, as always, is Damian Dunn. Hello. Dame, vice president of advice at your money line and hey money. That's quite the resume.
03:22
Damian Dunn
Yes, it is. Hello.
03:25
Peter Dunn
Hello. Dame this week we've got three questions and no one emailed them. I asked these questions. These are things that I'm currently wondering about personally. So let's hit it. Dame this July, meaning just a few days from now, the Advanced Child Tax Credit becomes part of American life. It is the culmination of a lot of work to get more stimulus into the economy. So people will spend money, businesses will boom, people will get jobs, and we can put this COVID-19 vaccine situation behind us in so many different ways. I've just oversimplified it. But here's what's about to happen. If you have a child who is under the age of 18 and you qualify for the advanced child tax credit, from an income perspective, what is going to happen is for every child that you have is five years old or younger, july through December, you will receive $300 a month on behalf of that child via check from the internal revenue service.
04:25
Peter Dunn
Dame if you've got a child who is six to 18 years old during the same time frame, you're going to receive $250 per month. It's a $50 difference. And so no matter how many children you have and you qualify, those things are going to happen to you over the next six months. But, my friend, as you know, there could be a problem if your financial situation in 2020 and your financial situation in 2021 are very different if things have gotten a lot better. Tell us why. People need to think twice about accepting the advanced child tax credit.
05:01
Damian Dunn
So the benevolence of the government, fantastic. I appreciate the little help uncle Sam may have to get turned right around and paid back to them. If your income has gone up significantly, probably between 2000 and 22,021, the credit is going to be based off of your tax returns for 2020. And despite how things may have gone last year, things could very well be looking better this year. Whether it's just work, returning to normal, different job bonuses. Whatever the case may be, if your income ends up being above the threshold, some of that child tax credit may be phased out or eliminated entirely. And you have to pay that money right back to Uncle Sam when you file your taxes next year. Pete that might put a little sting for some people come next spring.
05:52
Peter Dunn
So the thing is, people have got until June 28, which is just a few days away. What is that? Monday? Is that what the kids are calling it? Monday? Monday, June 28, to opt out of the advanced child tax credit. That doesn't mean you're giving up the tax credit. It's just mean you're giving up the advance. So what will happen at tax time next year? Is if you qualified, then you will get the entire child tax credit at that time. It will be credited for taxes paid, inevitably, which would mean you would get a giant tax refund at that period of time. But Dame, the danger here, like you said, is if someone's situation were to shift and they were to use this income now as the government wants you to pump back into the economy instead of saving it, then what we're going to see is we're going to see at tax time next year, not only have you spent all that money, you don't necessarily have any money in savings.
06:46
Peter Dunn
And you're going to see people go into debt, go into tax debt and it could get unintentionally ugly. But that's, I guess, the nature of sometimes what happens when the government gets involved.
06:58
Damian Dunn
Yeah, I have seen that the government would be happy to work out a payment plan with you if this falls into your lap next spring, but let's just not go there. Let's figure out if you do qualify for it or we're going to have to pay it back. There are some calculators out there. I believe the IRS may actually have one on their own website to determine whether or not you should be getting one and then figure out if you need to be giving it back next spring. So do a little bit of forethought and planning on this and potentially save yourself a lot of pain next spring.
07:32
Peter Dunn
To be fair, don't most people know whether or not their 2021 will better than their 2020? I mean, isn't that sort of an innate feeling that most people would have?
07:43
Damian Dunn
I would think so. Maybe some folks would not be aware of the cut offs where the phase outs, where the benefit starts to get reduced as your income climbs. So that could potentially present a little bit of a question mark for some folks. But if you're doing better this year and you know you're going to be close to some of those cut offs, go check it out. It's worth your time, it's worth the effort to make sure that you're going to put yourself in an advantageous position, even if that means that you're going to forego some cash for the next six months. I'd much rather get a lump sum for a credit towards the end than have to write a check back to Uncle Sam for some of it.
08:25
Peter Dunn
I'm with you. When in doubt, in this particular situation, I would win. In doubt, opt out, right?
08:34
Damian Dunn
Yeah.
08:35
Peter Dunn
That's clean, darn, that is clean. When in doubt, opt out. I would, because let's say your situation has gotten better, and let's say you've got four kids. That's a lot of money that you're going to have to pay back. And depending on how much your situation has shifted, you may not be in a position that you're going to get a giant tax refund anyway because this is how this would work. If you don't end up qualifying and you otherwise would have gotten a pretty giant tax refund, ignorant of the tax credit itself, not qualifying for this tax credit and you got all that money, it would then lessen the amount of a refund you were to get. However, if your financial realities shifted to the point where you weren't going to get a refund this year anyway, and this truly isn't a refundable tax credit, then you're in trouble.
09:31
Peter Dunn
You're absolutely in trouble. And if your situation changed that much from 2020 to 2021, it could be reasoned that you haven't rebuilt your emergency funds yet and you're not going to have access to $7,200 to have to pay back if you had four kids. Right? There you go. Yeah.
09:49
Damian Dunn
So if you find yourself in the situation where you don't opt out for whatever reason, but you don't necessarily need the money for expenses right away, plan on how you're going to spend that money. Maybe you set some of it aside just in case because you know your situation got better. You want to make sure you've got some cash setting aside for come next spring. So do some thinking about it. Don't just go out and spend it on the latest Xbox or PlayStation or iPhone or whatever it is out there for your kids because that's money is supposed to go for the kids. Right, Pete? Right Pete.
10:22
Peter Dunn
It's for the kids. I will say a couple of other things. Heather on Facebook Live just asks how do you log or how do you opt out? Because when in doubt, opt out. Go to IRS gov and there is an opt out link there. You have to log in and verify your ID. It's a little bit of a pain in the other thing to consider is dame. This is just actually a bigger conversation about are you giving the government a loan? That whole thing of you should actually be even around tax time or you should owe at tax time because at that point in time you have gotten better use of your money and you're not just getting a big chunk at the end of the year. That's sort of the expert financial advice, but I tend to disagree with that. I think you have to know your own behavior and what works better in your own financial life.
11:09
Peter Dunn
Some people are amazing at budgeting month to month and taking that additional increase and doing good things with it. Most people aren't. And I think for me, if I were to get a vote, I would rather just get a refund because I can just take it in a chunk and put it into an investment or something like that. What about you? How do you think about that?
11:28
Damian Dunn
I used to take the real tough guy stance of even around tax time and you don't want to give them the loan and blah, blah you know what? As you get older, you learn stuff, and people have different ways of managing their finances or not managing their finances. And sometimes that almost forced savings that you get back with that refund can really help people out in the long run. So if that's the approach you take, I just encourage you to use the money wisely when you get that refund back.
11:55
Peter Dunn
It's good to know I'm not the only one that has former tough guy takes. And that sort of old age has mellowed me out, so you, too. That's good to know. Dame coming up after the break, yet another question. Is this the greatest time ever for hustlers who want to improve their financial life with high paying second jobs? We'll explore that next. Right here on the Pete the Planner show. I'm that fella I just wrote these segments as teases.
12:24
Damian Dunn
Dame you did? Yeah, it's perfect.
12:26
Peter Dunn
You see Danza's in the house. Danza good day to you. Dame can I tell you, I'm sort of woke up bummed out today, which sort of attributizes what I'm about to tell you, I'm bummed out about because it's just sort of a weird way to say I'm upset. I'm so upset about that building collapse down in Florida. It's horrific.
12:50
Damian Dunn
I had heard about it, but I hadn't seen any real detailed pictures or anything. And then there was one that I saw online that was just the building had collapsed and there was a bunk bed just sitting right on the edge of part of the collapse. That's what kind of hit home bunk beds, you think? Kids and whatnot. And it's just what a horrible situation.
13:13
Peter Dunn
Yeah. I mean, as of twelve 06:00 p.m.. Eastern time on Friday the 25th, 159 people are still missing and four people are confirmed dead.
13:26
Damian Dunn
Yeah.
13:27
Peter Dunn
Again, to call it a bummer, it sounds like I'm trivializing it or being glib, but it's awful. It's just like a weird vibe I got going about this. All right, Dame, let's hit segment number two, talking about Hustlers. Three, two, one. Back on the Pete the Planner show. Dame it occurred to me this week, as people get back to work or don't get back to work, and employers are having a hard time finding bartenders and waiters and all sorts of things, what a great time. What a great opportunity for that certain individual who is willing to grind, like, really dedicate a lot of their 168 hours a week to better themselves to fix a financial fault, to strengthen their financial situation. What a beautiful time. I mean, Dame, a second job could get you 15, $16 an hour. And you usually don't see that sort of thing going on, right?
14:31
Damian Dunn
Not at all. Prior to this whole ordeal that we've faced over the last 18 months, twelve months, whatever it is, you think side jobs, man, you're going to be doing a lot of work for not a whole lot of money. But you start talking about doing low commitment jobs for 14, $15 an hour, that can make a big difference in pretty short order in a number of areas of your life. Reduce debt, increase savings, maybe put some away for long term investments, build that emergency fund. And once you hit that goal, as one of the rules that we've created is make sure that your money for that second job has a job. It's not just sitting there doing nothing. But once you hit that goal, you can walk away and get back to life as you know it or knew it and move on. So, second jobs, I think right now hustling is going to be really in vogue, or at least it should because you can make a big difference in a short amount of time.
15:31
Peter Dunn
I will see post Great Recession. Post Great Recession. Not to be confused with the Great Depression. So 2008, 2009, that's when we saw the gig economy really become a thing. We've got Uber, you've got DoorDash and all that. And DoorDash, arguably, and instacart and all those sorts of things are an offering that people are taking advantage of. Still, I don't know about Uber, I don't know how many people are jumping into a person's car not knowing sort of their situation. But I will say this. Unlike 2008 and 2009, these jobs that are available aren't necessarily gig economy workers. They are traditional retail workers and traditional food service workers. And I know that those positions are being reevaluated as to how fair they are from a compensation percentage. However, I have to say I think the opportunity is actually larger than in previous years. And on top of that, dame, you know who is making the most of this time are teenagers.
16:40
Peter Dunn
Some of the highest teenage employment rates in years because of these really fat and nice paying jobs for someone in that position.
16:50
Damian Dunn
Yeah, if you're a teen looking for a job to either make a little spending money or start putting some cash away for college, or call it just normal expenses that you experience when you're in college, man, this is a great time. Go bag groceries for previously unthought of amount of money, depending on the location of the country that you're in. But the opportunities out there, just like you said, they're not just relegated to one specific industry. It seems like you can find them just about anywhere. If you've got the right amount of time and the right amount of desire, you can make some significant cash.
17:28
Peter Dunn
I think the other interesting thing is you're seeing more 14 year olds employed than just in about any other time in the state of Indiana. At least. That's generally the threshold for work. You have to get a work permit. It's like this whole thing. But my daughter, who is twelve going on 40, she has great interest in working right now. She can't, but I know when she's 14, she will work. What's funny indiana, again, there are rules around how old you have to be. You can be as young as twelve and be a sports referee. You just have to referee kids who are younger than you. Of course, we could also argue that is a very dangerous job to be a youth sports referee in today's day and age. But Dame, if you think about who are the big winners, which is sort of, again, a gross way to look at this, who are the big winners based on this employment issue going on right now?
18:23
Peter Dunn
Teenagers. Teenagers. Because adults aren't taking these jobs good, bad or otherwise, for whatever reasons, teenagers are jumping in and getting this, which, I mean, I don't want to extrapolate this out too far, but could this lead to a decrease in student loan debt? Could this lead to increased financial security at the beginning of an actual work career? I mean, can we make those hypotheses?
18:47
Damian Dunn
It could certainly lead to a decrease of aid available because of how weighted the student income is versus parents income or savings, which is I'm not saying that's a reason to not go out and get a job and learn all the lessons that you would learn in an employment role, but it could have a ripple effect down the stream as well. So, yeah, it'll be interesting to see how this all plays out. If kids are in high school making $15 an hour doing a high school level type job, it'll be interesting to see what they expect when they come out of college with a four year degree and see if the wages have shifted to accommodate their expectations.
19:29
Peter Dunn
At the risk of beleaguering this next point more than we should, I feel like I've read just about every article or analysis or opinion about why there's so many job openings. And of course, that conversation begins with the unemployment benefits and extension of that, and that going away. And I think that has some to do with it, certainly. But Dame, I've come to believe that there's just a lot more at play here. If I had to guess in terms of a percentage of why this is, I buy the idea that people have decided what they once thought was fair compensation for the work is no longer fair compensation for the work. Okay, so I'm there, here's where I need your help. I can't figure out how the rest of that story plays out. Then if someone decides that this is not fair to get paid this wage for this work.
20:29
Peter Dunn
Okay, cool. So what's happening? I have read some thoughts that people are then taking on more responsibility, taking on higher paying jobs, but where are those jobs coming from?
20:42
Damian Dunn
Yeah, I think I agree entirely with your premise that it's almost like an unorganized union movement where people say, you know what, the job is not worth what you're paying me. So I'm not going to do it anymore. And therefore, the employer is forced to potentially raise the wages. Not raise the wages. That'd be interesting.
21:01
Peter Dunn
That'd be interesting.
21:04
Damian Dunn
And it's driving that side of the cost up for the employer. So how does that play out in the long run? I mean, in theory, if it was a little less unorganized or maybe a little less publicized, then the employer sits back and waits and says, somebody will fill this job for the wages that I am used to paying. But right now, whether it's social media pressure or just local pressure or just the fact that they need people to fill the jobs, wages are being raised. And I think once they go up, it's going to be really hard for them to play to come back down. So they're just going to have new rules to play by going forward. It's a really unique confluence of circumstances.
21:45
Peter Dunn
Yeah. Our coworker, Chad Force was telling me he was on vacation last week in South Carolina and saw a sign at an arby's that said a $750 signing bonus. And based on the hours that person would have at arby's, that's like two weeks worth of wages. Sometimes with economics, you try to remove yourself from the situation and sort of observe what's going on, but this is all really happening in real time. There's a lot of lives at stake with this whole thing, as there always are, but boy, am I interested to see how this thing plays out. I will leave this segment with the following thought. If you have it in you over the next six months to grind and there's nothing wrong with ambition, this is what you want to do. Don't feel the pressure. This is what you want to do. If that is your thing, I think you can make a ton of money in the next six months, and I think you can set your financial life on the right foot for a very long time.
22:50
Damian Dunn
Yeah, I agree. I think now is the time. If you have any desire, go out, make some cash, make a difference.
22:56
Peter Dunn
All right, so let's do this dame. Coming up after the break, which industries are going to suffer because of the comeback of the economy? All that's next on the Pete the Planner show. I'm Pete the planner. Tracy, watching on Facebook Live, gave the angry face emoji. So you can always see that come in, but you never know what we said. So is she angry at us or is she angry at an idea that also concerns us? That's the thing with the angry face emoji is you just don't know where the anger exists.
23:34
Damian Dunn
We're just left to speculate.
23:36
Peter Dunn
My man pinken says his nephews are in high school and have had the luxury of job hopping, chasing top dollar. I know, man. I wish my daughter was 14 and sometimes because she would love to work and I would love for her to work.
23:50
Damian Dunn
How frustrating is it for those employers, though? There's a pool of teenagers that are willing to work, and yet they're the ones controlling everything. They know they're in demand, and they can jump from one job to another job, and they know that there's going to be another opening for them.
24:09
Peter Dunn
Danza notes DoorDash recently reduced their base pay by $50 to gig. Workers are freaking out. No way McDonald's can cut their opening wage once it's been brought up. That's where we're at, right? That's why it sounds so cold, though, the economics of this. Okay, so what's going to happen? DoorDash makes that move, other people are raising their wages. People are going to leave DoorDash and go work at RVs?
24:35
Damian Dunn
I doubt it.
24:36
Peter Dunn
You don't think so?
24:36
Damian Dunn
No, I don't. I think a lot of people would rather stay with DoorDash. Something that's more flexible, something they can do on their own time and I don't know, doesn't have the stigma of working in a fast food joint. They'd rather just cart the stuff from one point to another. I don't know. I could be wrong.
24:56
Peter Dunn
Speaking of DoorDash, I'm ordering snacks for this business development meeting that's happening after this, and so I'm doing this as we're going here. What do you think?
25:05
Damian Dunn
You're multitasking?
25:07
Peter Dunn
No, you've never known me to do that. Yeah. So Danza says DoorDash is so flexible. There's no way. Yeah, see, this is why it's interesting.
25:20
Damian Dunn
Yeah. I gladly give up a little bit of potential income to know that I could do it on my own time and wasn't beholden to somebody else's needs.
25:29
Peter Dunn
Beholden. Fantastic. All right, Dame, let's do this. Let's do another segment. I do have to order snacks, though. I mean, this is tough. I mean, what to do? Okay, in three, two, one. Back on the Pete the Planner show. Dame, you know, as we talk about what is going on with the economy, some businesses are definitely recovering. The travel industry. We visited this idea in December of 2020. We began to make some predictions of who's going to do well, who's going to do poorly, what's going to happen, and, well, we're halfway through the year, so let's begin to examine some of our predictions and more importantly, what's going to happen. The trends that led to success in 2020 for Zoom and at home Fitness, companies like Peloton and grocery stores. What has the first six months of 2021 taught us, and what's going to happen going forward?
26:35
Peter Dunn
So is there any low hanging fruit that you want to comment on before we get started here?
26:41
Damian Dunn
I'm curious just to see where you're going to take this. Let's wander into your mind and see what comes out.
26:48
Peter Dunn
I want to start with Peloton, and I want to start with at home Fitness, and for a very specific reason. Peloton. Companies like Peloton. I don't have to disclaim and say all the ones I'm talking about, because I don't want to have to think about them. They were set up for 2020. It was just like a brilliant time. It's like, hey, I need inspiration, I need good fitness, I need a good user experience if I'm locked in my home. And here's a bike, here is a ton of demand for the bike. It's back ordered months, so it's a relatively good thing, except for the back ordering part. But then what happened early in 2021, which really threw me for this whole thing, is Peloton had all those recall issues with their treadmill, where their treadmill had killed a kid and they injured a bunch of other kids and it was like, okay, so that's a problem.
27:40
Peter Dunn
And then you think, well, gyms are opening back up, so therefore that's going to be further down. What ended up happening, Dame, is that yes, their stank, their stock got beat.
27:57
Damian Dunn
What's happening?
27:58
Peter Dunn
Their stock got beat up, right. Because of the recall thing. But it has taken off. They're still doing big business. They're continuing to innovate. They just released or announced within the last week that they've got a new heart rate monitor that attaches to the arm as opposed to across your chest, which makes for a better experience. So, Dame, I think I was wrong. I thought Peloton was going to really struggle in 2021, but it doesn't seem like they are.
28:27
Damian Dunn
I go back and forth on this, on whether or not the home fitness industry is going to continue with the levels of sales that they had last year, or if there's going to be a natural decline. Not a lot of people like to go to a gym anyway. It's time consuming and then sometimes it's intimidating. And then you've got the whole health aspect of people potentially being sick around you and you laying on sweaty benches and grabbing all sorts of disgusting stuff. But if you can have a good experience inside your own home for potentially a largely one time fixed cost, if you're looking at weights or devices that aren't tech enabled, something like that, there's a draw to that. So you can just have more places to hang your clothes when you quit working out. Right? I mean, it's just adding other furnishings to your home that you can potentially sell on Craigslist later.
29:22
Damian Dunn
But the home fitness industry had some moderate success before the Pandemic, launched during the Pandemic, and I think there might be here to stay. I think it might be just the new normal for a lot of people on how they choose to exercise.
29:37
Peter Dunn
Yeah. I have to say, I hope that the home fitness craze starts to die out so I can actually get some decent prices on Dumbbells. They got so expensive during the Pandemic. Like if you wanted to add anything, it was ridiculous. It's one of those things where the prices almost tripled in some cases because of demand and supply issues, which of course is a. Form of inflation as well. Next topic. Dame next prediction. We thought grocery store habits were going to stick around for a little while. These people's new idea around what it is to eat and consume food at home. But look, if restaurants are booming, then something's got to happen to food costs. It's not like you can have high dining out levels and high grocery levels because it just doesn't make sense. There's only so many mouths where the food is going to go.
30:29
Peter Dunn
Now, labor issues are certainly pulling down the restaurants. So what do you think? Are grocery stores going to continue to hang on, or are we going to see where it was pre pandemic, where people spent more on dining out than they did on groceries?
30:45
Damian Dunn
I think the bottleneck in that whole scenario, there is labor at the restaurants. There have been a couple of restaurants that my family has gone to that we walk in. Parking lot looks moderately busy, nobody's necessarily waiting in the lobby, but they tell us it's going to be a 45 minutes wait because they only have two servers in the entire building. You're locking yourself into significantly less than capacity as far as the number of people or chairs that you can sit or tables you can turn. And that's going to be frustrating for a lot of people. So I think there's still going to be an interesting balance between people's dining habits, whether they continue to buy their food through the grocery and make it at home or if they need that break, that mental break, just to change things up and go out to a restaurant and being able to get to the ones you actually want because they may or may not have enough help to get your food.
31:38
Damian Dunn
I don't have a real good opinion on where that one's going to go, Pete, because I think it's yet to be determined as the employees wages get worked out and they can get up to full staff.
31:47
Peter Dunn
Home renovations. So now the price of lumbers come back down. What was becoming so prohibitive within that industry was the time to be able to get someone to come in and work at your house because of demand. And then the costs were getting astronomical. I think as people go out and about, spend money on vacations again and travel again, then that money simply isn't there to spend on home renovations. My theory was the money that people were spending on vacations, they were then spending on home renovations. Dame do you think home renovations continue their trend and instead of people using their vacation money, they're using home equity? Do you think that's what's next?
32:26
Damian Dunn
I think home renovations still have another good twelve to 24 months to go before we really start seeing them taper off, at least locally. With the contractors that I've talked to, they don't know how they're going to fill all the business that they're getting at this point. So at some point it'll normalize whether people will just decide, you know what, I don't want to renovate this house, I want to move to a different house. And they go that route. But in the meantime, yeah, there's going to be people that are just saying, you know what, we're not going to go on vacation this year. We'll take that money or we'll take some equity out of the house and renovate it and live here for another 510, 15 years and go that way. But I think that one's still got some runway.
33:04
Peter Dunn
All right, so then the final one I want to hit is sort of at home entertainment in the forms of streaming. I have to admit, I think we picked up at least one streaming service within the last 18 months or so, a subscription streaming service, and I feel like a lot of other people did too. Dame, what do you think happens there with Netflix and Disney Plus and the Peacock and Paramount? I mean, all of the everyone has a network now. Do you think in the coming twelve months that those services begin to suffer?
33:35
Damian Dunn
I'm not going to pick a winner or loser in that group necessarily, but I think the overall money spent on streaming is going to remain really high. I think people's consumption of entertainment has changed probably for good at this point. I don't think movies are probably going to return to what they were pre pandemic levels and people will choose to sit at home and enjoy a flick on the couch or stream. Chip and Joanna? Who knows? I'm not sure what direction you lean on your entertainment preferences, but man, it sure is nice to be able to just sit at home and enjoy stuff.
34:12
Peter Dunn
Can you tell me a little bit about Chip and Joanna? I don't know what oh, what is that?
34:17
Damian Dunn
Joanna Gaines?
34:18
Peter Dunn
I have no idea what that means. Is that like a fitness competition? What is it?
34:22
Damian Dunn
Yeah, that's exactly what it is.
34:24
Peter Dunn
What is it?
34:24
Damian Dunn
I got American Ninja, chip and Joanna Gaines renovate houses, and then Joanna's got about a million other things that she does. They've got a magazine and all sorts of stuff.
34:34
Peter Dunn
Well, that sounds very innovative. Are they in Texas?
34:37
Damian Dunn
Yeah.
34:38
Peter Dunn
Okay. I feel like maybe I have it. Do they have another brand? Is it just like Chipping?
34:42
Damian Dunn
No. Yeah, Fixer Upper was the original show that came out, but they do have a brand. I can't think of what it is because I'm not in that cult.
34:53
Peter Dunn
Any other industry that you want to make a prediction? We got about 30 seconds left. Anything else that you see falling off because of how the trends and spending are going on?
35:00
Damian Dunn
Nothing that's going to jump to my mind. If only I had more time to think about this.
35:05
Peter Dunn
Yeah. All right, Dame, let's do this. Coming up after the break, biggest waste of money of the week in the news, and I have a personal magnolia. That's the name. Mary Lou. Thank you. I have a very important thing to tell you about biggest waste of money of the week. I personally witnessed it, and I want to share it with you next right here on the Pete the Planner show. I'm Pete the Planner. I just ordered snacks while we're doing this.
35:31
Damian Dunn
I'm glad I could help you with that.
35:32
Peter Dunn
Yeah. Magnolia home. That's right. That's what I thought it was. That's good to hear. Right?
35:38
Damian Dunn
There you go.
35:39
Peter Dunn
I don't know. Is it?
35:41
Damian Dunn
Sure.
35:42
Peter Dunn
All right. Dame. Yeah. I personally witnessed this biggest waste of money of the week, and it sort of blew my mind. And I've been laughing about it for three or four days.
35:53
Damian Dunn
By witnessed, you mean you did it?
35:55
Peter Dunn
No, that would be experienced. I witnessed it. I saw that it was something for purchase. I discussed it with the clerk at the store and let them know that no one in the world buys that.
36:07
Damian Dunn
Well, I thought maybe you're just trying to deflect by using the word witness instead of experienced.
36:13
Peter Dunn
That's fair. That's fair, but that's not the direction I was going with it.
36:17
Damian Dunn
Okay.
36:20
Peter Dunn
All right, you ready to go here? Yeah, I'm checking something real quick.
36:26
Damian Dunn
You got more snacks to order?
36:27
Peter Dunn
I've ordered the snacks.
36:29
Damian Dunn
Can you have somebody deliver from your local liquor store of choice?
36:34
Peter Dunn
I got snacks from Hopkat. If you're in central Indiana, you know what that means. They've got their Cosmic fries, meathead pizza rolls and Buffalo rolls. It's an unhealthy snack business development meeting today. So what, are you going to eat those things? All right, in three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is Dame. I have a story to tell you.
37:02
Damian Dunn
Please.
37:03
Peter Dunn
From time to time, I will buy my wife flowers. The rule of thumb is you never do that when you're in trouble or when you've done something wrong. Never. As an apology, I feel like that gets in a weird direction. So I front load the situation when everything's going fine, and I'll just go buy her flowers from time to time. Are we tracking so far? Sure. Yeah. And by the way, this whole story is not a means for me to tell people how I buy my wife flowers. And you'll see why in a second.
37:36
Damian Dunn
Okay.
37:36
Peter Dunn
So I go into the store, the flower shop, as they call it, the florist, and I pick out some flowers. They were some gerber daisies. They were lovely. I take them to the counter, check them out, and behind the counter is they often have samples of things you can buy. Sometimes they'll have balloons hanging up on the wall. Different. Mylar balloon selection that you get, like, kids third birthday with Dora the Explorer screaming. I see a balloon that's right behind the counter. It's inflated. It's a mylar balloon and it says I'm sorry. But it's got like a smiley face and it's not like a sympathy balloon, it's an apology balloon. And I'm thinking to myself, who in the world buys an apology balloon? And what is the occasion in which an apology balloon is appropriate? Unless the apology balloon is tied to, like, the side mirror of a brand new Mercedes or something like, who buys an I'm sorry balloon?
38:33
Peter Dunn
And then it occurred to me dumb men. Dumb men. D***. I know you don't do anything wrong ever that would frustrate your life partner. However, if you brought her I'm sorry balloon and just left it at that and said, we're all fixed, how would that go?
38:53
Damian Dunn
I'm not even sure how to answer because I'm not that dumb. I wouldn't do that if my spouse thinks otherwise. I'm sure she'll comment here shortly in the stream. And we'll all know I'm trying to think of uses for that balloon. Is that the one that you tie to the roadkill alongside of the road? It just says I'm sorry and floats.
39:18
Peter Dunn
Yeah, right. Yeah. Get well soon. Like on the stiff deer leg that has been hit by a truck. Yeah. So, Dame, I think if anyone were to buy an I'm sorry balloon and give it to another to a kid for some reason, you want to apologize to your kid for doing something wrong and bring Ted and I'm sorry balloon, that could work. But I mean, that's a weird flex.
39:41
Damian Dunn
Seems a little disingenuous, I think. So any other balloons that caught your mind or caught your eye while you were there?
39:49
Peter Dunn
I spent the remainder of the transaction discussing that. And the florist behind the counter, he goes, I try to talk men out of buying that. I was like, well, thank you for your service, sir.
40:02
Damian Dunn
So they do sell them?
40:04
Peter Dunn
Well, either that or as Danza points out on Facebook Live, right now, it sounds more like a sorry, not sorry balloon. So true. Dame. What's in the news this week?
40:15
Damian Dunn
High school seniors are filling out more financial aid forms than they were in the midst of the pandemic in the autumn of 2020, when there were record high drops in completions. But as of June 11, 2021, filings for the FAFSA were still down a whopping 5.3% from a year ago, which does not bode well for college going into the fall of 2021. FAFSA filings remain especially depressed at high schools with higher concentrations of students of color in rural areas and small towns, as well as low income schools everywhere. FAFSA filings are seen as a leading indicator of future college enrollment because students need to fill out the form to obtain financial aid, including grants, loans, and work study jobs, important steps for most students in the college application process. More than half of the nation's 3.8 million high school seniors typically fill out the form every year, and even a one or two percentage point drop is considered a big change.
41:12
Peter Dunn
So do you think this story indicates exactly what it's suggesting, or do you think it's a little more complex than that? There's some other factors because what you're saying is the enrollment cliff has started four years early because the enrollment cliff was coming 2025, significantly less kids to go to school. So dame this could be that has started. That's the sort of the declining kids that age. It's just a demographic thing. So that could be that, or it could be the realities of the pandemic of having people say, look, I had a chance to redefine, reconsider, reexamine, and I'm not doing that. What do you think it is?
41:52
Damian Dunn
I think it's probably the second one. I think families are reevaluating the appropriateness of the student going to college, especially at this point in time. A bit of information that was in the article that I didn't include here is that students who are already enrolled in college are completing the FAFSA at higher rates than they have previously.
42:13
Peter Dunn
Okay, that's interesting.
42:15
Damian Dunn
Yeah. So I'm assuming that means the family wants to make sure they are getting all the assistance they possibly can as early as they can. But first year students or new students at this point have not filled it out as much. So if that actually indicates that fewer students are considering going to college, that could speed up this process of getting us to an enrollment cliff and then who knows what happens.
42:40
Peter Dunn
I have another hypothesis.
42:42
Damian Dunn
Please.
42:43
Peter Dunn
What if kids not being in school, at school, in high school means they were not exposed to the guidance counselor in college advising departments of their high schools that tell parents and kids to do that and it just got left behind. And so people just have, out of ignorance, not applied because they don't know to apply?
43:06
Damian Dunn
Well, that would be a horrible situation.
43:11
Peter Dunn
I think you could qualitatively say that might be part of the reason.
43:16
Damian Dunn
Why a new credit card would allow users to convert reward points into cash to buy a home. Real estate startup Built is joining with Evolve Bank and Trust and Mastercard to launch the Built card earlier this week.
43:32
Peter Dunn
Okay.
43:33
Damian Dunn
Users can accumulate reward points through rent and other spending and then put those points toward rent other purchases or even a down payment on a house. When a card user goes to buy a home, built says it will convert the reward points into cash and deposit the money into the home sale escrow account.
43:50
Peter Dunn
I mean, this is simply just a marketing mechanism of rewards cash back. I'm not mad at it. I systematically don't have any issue with it. How about you?
44:02
Damian Dunn
Yeah, it's interesting. I think it's just another lever that a credit card company can pull to try and entice people to spend money on that particular card. But it's exactly as you said, just another rewards program, very focused rewards program at this point, but just another way to try and help yourself out.
44:21
Peter Dunn
What else is in the news? I think we have time for one more story.
44:25
Damian Dunn
Strict NCAA limits on compensating college athletes violates US antitrust law. The Supreme Court ruled unanimously on Monday. The decision upheld lower court rulings that the NCAA unlawfully limited schools from competing for player talent by offering better benefits to the detriment of college athletes. The NCAA must allow colleges to recruit athletes by offering them additional compensation and benefits as long as they're tied to an education.
44:52
Peter Dunn
Can I tell you, I both feel I have so many complex thoughts over this. Not only did the NCAA lose in the Supreme Court case, they got blanked. They got blanked 90. That's a skunk. Yeah, that's a lot of stank.
45:10
Damian Dunn
Yeah, that's the athlete standing there just saying, scoreboard at this point.
45:14
Peter Dunn
Here's what's going to happen. Mass confusion as well as schools and boosters are going to come up with these marketing packages that essentially pay athletes to come to their school. They're going to say, oh, you want to go here instead of here? Well, this car dealership will do this or that, and you endorse the car dealership. And so good, bad, or otherwise, what this is going to be is kids specifically being offered top dollar, go to particular schools. As opposed to which I think the spirit of the rule is you go to a school, you have some level of performance, and you can take advantage of the name that you make based on that performance. I'm not saying one's wrong and one's right, but I think that's what's going to end up happening.
46:01
Damian Dunn
I'm not sure how this is going to play out, but I suspect that the rich will get richer in this case and the smaller schools will struggle, and the only real winners will be the athletes.
46:14
Peter Dunn
Well, good for the kids, honestly, because it's like for so long, they're the ones getting people in the stands and then everyone else is making money. So good for them. Dan, that's all we have time for this week. I want to remind you specifically, I'm sending you good vibes because good vibes are all that's in the budget because I bought snacks for the meeting. I'm Pete the Planner and this is the show. But the thing is, we don't have beer. We have a bottle of champagne in there. But I mean, it seems a little aggressive to open a bottle of champagne at a business development meeting. I mean, we do have a good.
46:44
Damian Dunn
Gas station across a parking lot. Sell beer.
46:46
Peter Dunn
I don't know. I know dame. What are you doing this weekend?
46:56
Damian Dunn
I think we have one graduation party. I think that is it. Other than that, spending time around the house and getting caught up on some stuff that's been unfortunately ignored, my honeydew.
47:05
Peter Dunn
List has grown to something astronomical. So this weekend will be I guess the manifestation of instead of flowers. I'm doing work for my wife, so go figure.
47:18
Damian Dunn
I may actually have to pick your brain on something I'm trying to learn that involves audio video stuff.
47:25
Peter Dunn
Okay, well, if it doesn't go well, they can always buy me an I'm sorry balloon dame. That's it for this week. I love you all for watching. I mean, it's a little aggressive. I feel pretty good about you. But I do need you to know this. Stay getting money.
