2025’s Money Year in Review and Travel Card Moves To Make Now
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this year-end wrap-up episode, hosts Sean Pyles and Elizabeth Ayoola analyze the top five personal finance stories that shaped 2025, from tariff-driven market volatility to interest rate cuts. (03:00) They explore how major economic events like the historic two-day stock market crash in April and subsequent rebound affected everyday consumers, while discussing practical strategies for navigating rising grocery costs and housing market challenges. The episode features a comprehensive credit card consultation with Smart Travel podcast hosts Meghan Coyle and Sally French, where Elizabeth undergoes a detailed review of her $2,000 annual fee credit card portfolio. (30:00)
- Main theme: Year-end financial review combined with practical credit card optimization strategies for maximizing travel rewards while managing high annual fees
Speakers
Sean Pyles
Sean is a host of NerdWallet's Smart Money Podcast and personal finance expert. This year he started a business, got married, and funded his honeymoon while maintaining financial stability, describing his 2025 finances as "accomplished."
Elizabeth Ayoola
Elizabeth is a co-host of NerdWallet's Smart Money Podcast and personal finance expert. She describes her 2025 financial journey as "progressive," successfully continuing to max out retirement accounts while improving her budgeting habits and addressing behavioral finance challenges.
Meghan Coyle
Meghan is co-host of NerdWallet's Smart Travel Podcast, specializing in travel rewards and credit card optimization strategies. She provides expert guidance on maximizing travel benefits and managing high-fee credit cards.
Sally French
Sally is co-host of NerdWallet's Smart Travel Podcast, focusing on travel finance and rewards maximization. She offers practical insights on credit card management and travel spending optimization.
Key Takeaways
Diversify Your Investment Portfolio to Weather Market Volatility
The 2025 stock market experienced a historic crash in April, with the S&P 500 dropping 12.1% over two days, losing approximately $6.6 trillion in market value. (08:21) However, just days later on April 9th, major indices posted their largest single-session point gains ever. This dramatic swing illustrates the importance of maintaining a diversified portfolio and not making emotional decisions during market downturns. Elizabeth noted feeling "unbothered" during the crash because she wasn't using the money anytime soon and understood that markets historically rebound. The key lesson is to view market dips as opportunities to "shop for stocks on sale" rather than panic-selling, which would lock in losses just before significant gains.
Maximize Grocery Rewards to Combat Inflation
With grocery prices continuing to rise due to various factors including tariffs, strategic use of credit card rewards and store programs has become essential. (07:35) Elizabeth successfully implemented this strategy by consistently using her credit card that offers rewards on grocery purchases and participating in store reward programs. She also emphasized the importance of checking your refrigerator before shopping to avoid duplicate purchases. This approach helped offset the frustration of spending significantly more for the same items, turning necessary spending into reward-earning opportunities that provide tangible financial benefits.
Calculate True Value Beyond Annual Fees for Premium Credit Cards
Elizabeth's credit card analysis revealed that paying nearly $2,000 in annual fees can be justified when statement credits and benefits exceed costs. (35:00) For her Chase Sapphire Reserve ($795 fee), she could easily utilize $300 travel credit, $300 dining credit, and $300 StubHub credit, totaling $900 in value. Her Amex Platinum ($895 fee) offered $400 in dining credits, $200 in Uber credits, and $300 in Lululemon credits, again exceeding the annual fee. The experts emphasized that justification requires actual usage of credits, not just theoretical value. This systematic approach to evaluating premium cards ensures you're truly maximizing benefits rather than paying for unused perks.
Regularly Review and Optimize Your Credit Card Portfolio
Elizabeth's weakest card was her American Airlines card, which provided lounge access she no longer needed after acquiring Amex Platinum and Chase Sapphire Reserve benefits. (43:39) Since she rarely flies American (only 5% of Houston flights), doesn't check bags, and already had superior lounge access, the card provided minimal value for its annual fee. The hosts recommended switching to a United card better suited to her Houston hub. This demonstrates the importance of periodically auditing your card portfolio to eliminate redundant benefits and ensure each card serves a specific purpose in your financial strategy.
Focus on Controllable Financial Factors During Economic Uncertainty
Despite widespread economic anxiety about tariffs, inflation, and market volatility, both hosts emphasized focusing on personal financial management over external factors. (16:22) Elizabeth noted that while she feels "just as lost as everyone else" about the economy's direction, concentrating on budgeting, maximizing available benefits, and building emergency funds provided stability and peace of mind. This approach proved more effective than obsessing over constantly changing tariff headlines or market predictions. The strategy acknowledges that while you cannot control economic policy or market movements, you can control your spending, saving, and investment behaviors.
Statistics & Facts
- According to a St. Louis Fed report, tariffs contributed a 0.5% year-over-year increase in headline personal consumption expenditures inflation this year. (05:59)
- The S&P 500 experienced its fifth-largest two-day percentage decline since 1950, dropping 12.1% and losing approximately $6.6 trillion in market value over just two days in April. (08:41)
- According to Apartment List, national median rent fell 1% in November compared to the previous year, with vacancies reaching a record high of around 7%. (13:45)
- NerdWallet's 2026 Consumer Outlook report found that 63% of respondents believe 2026 will be financially better for them, while over half expect prices to continue rising. (16:58)
- Consumer sentiment dropped almost 30% compared to the previous December, according to University of Michigan data. (17:19)
