The YNAB Podcast

Ask Jesse: Airlines are Banks, Better Money Habits, and Fast Talking

Oct 16, 2023

10:33

Snipd AI

Topics include airlines as banks, alternative college savings strategies, saving money strategies, developing better financial habits, and adjusting podcast playback speed.

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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.

Airlines as Banks and Alternative College Savings Strategies

5min

Saving Money Strategies and Developing Better Financial Habits

5min

In today's episode, Jesse answers questions from YNAB'ers including how to build the habit of checking YNAB before spending and how to slow down Jesse's speech patterns for UK listeners (there's an app for that!). A listener also sends in an interesting article about how airlines have essentially turned into banks via their elaborate reward points systems.

Ron Lieber on the YNAB Podcast (Episode #480)

Apple Podcasts: https://podcasts.apple.com/us/podcast/you-need-a-budget-ynab/id477248343?i=1000515131147

Spotify: https://open.spotify.com/episode/2qh75uqa9uzQGggz7wwYiS?si=088cd75db8be4f01

Pocket Casts podcast player: https://pocketcasts.com

Got a question for Jesse? Send him an email:

askjesse@ynab.com

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