The Jesse Mecham Show
Ask Jesse: Airlines are Banks, Better Money Habits, and Fast Talking
Oct 16, 2023
Topics include airlines as banks, alternative college savings strategies, saving money strategies, developing better financial habits, and adjusting podcast playback speed.
10:33
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Airlines have turned into banks through loyalty programs, leading to higher prices for non-cardholders.
- Alternative strategies for saving for college include negotiating prices and funding a Roth retirement account for long-term benefits.
Deep dives
Airlines as Banks: Loyalty Programs and Points System
Airlines have effectively transformed into banks through the implementation of loyalty programs. These programs enable airlines to create points out of thin air and sell them to banks for real money. Co-branded credit cards play a crucial role in this system as banks award points to cardholders for their spending, generating revenue through swipe fees. The financial value of major airlines' mileage programs often surpasses the value of the airlines themselves. While loyalty programs may seem beneficial to consumers, they actually lead to higher prices on everyday goods and services for non-cardholders, effectively subsidizing the perks of wealthier card users.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
