How to Budget Better With Your Partner and Why Scam Calls Are Surging
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 episode of NerdWallet's Smart Money Podcast, hosts Sean Pyles and Elizabeth Ayoola tackle two critical financial challenges: protecting yourself from shutdown-era scams and managing household budgets when partners disagree. (02:59) The first segment features Eva Velasquez, CEO of the Identity Theft Resource Center, who discusses the surge in government imposter scams taking advantage of the federal shutdown. (05:20) The second segment welcomes fellow NerdWallet employee Jay Leong, who shares his struggle to align budgeting approaches with his wife - he prefers high-level data analysis while she wants to track every transaction. The episode provides practical strategies for couples to find common ground on financial management despite different money personalities.
• Main Themes: Government shutdown scams, AI-driven fraud protection, couples budgeting challenges, finding shared financial values, and implementing practical budgeting systems that work for different personality types.Speakers
Sean Pyles
Sean Pyles is a host of NerdWallet's Smart Money Podcast and a personal finance expert who helps consumers navigate complex financial decisions. He specializes in budgeting strategies and financial planning advice for everyday Americans.
Elizabeth Ayoola
Elizabeth Ayoola is a host of NerdWallet's Smart Money Podcast and personal finance writer who focuses on practical money management strategies. She brings expertise in budgeting systems and helping couples align their financial approaches.
Eva Velasquez
Eva Velasquez is the CEO of the Identity Theft Resource Center, a nonprofit organization that provides free recovery services to identity theft victims. She is a recognized expert in fraud prevention and consumer protection, frequently appearing in media to educate the public about emerging scam threats.
Jay Leong
Jay Leong is a NerdWallet employee and engineer who joined the podcast to discuss his real-world budgeting challenges with his spouse. He works in engineering and brings a data-driven approach to problem-solving, though he struggles to align his financial management style with his wife's more detailed tracking preferences.
Key Takeaways
Verify Government Communications at the Source
During the government shutdown, scammers are exploiting public confusion by impersonating government agencies offering fake benefits or threatening legal action. (05:12) Eva Velasquez emphasizes that consumers should never rely solely on their ability to detect fraud, especially with AI making scams more sophisticated. Instead, always verify any government communication by going directly to the official agency website or calling their official number. If the agency is closed due to shutdown, that's your answer - they won't be contacting you about grants, benefits, or threats to your financial security.
Start with Financial Values Before Budgeting Systems
Many couples struggle with budgeting because they focus on the mechanics (apps, spreadsheets, tracking methods) before establishing shared financial values and goals. (23:01) Jay's experience shows how trying different systems without alignment on values leads to frustration and abandonment of budgeting efforts. Elizabeth suggests that couples should examine their current spending patterns to identify what they actually value, then use those insights to set shared financial goals that both partners can work toward, regardless of their preferred tracking method.
Implement Money Dates for Better Communication
Regular "money dates" provide a structured, non-judgmental way for couples to discuss finances and align their approaches. (22:26) These conversations should focus on understanding each partner's money values, reviewing spending patterns together, and setting shared goals rather than pointing fingers about past purchases. The key is creating a safe space for financial dialogue that happens consistently, even if it's just 10 minutes a week, to prevent money discussions from becoming crisis-driven arguments.
Convert Inflated "Needs" Back to "Wants"
Many people unconsciously transform wants into needs through contractual obligations or lifestyle inflation, which destroys budget balance. (26:01) Jay discovered his family was spending 75% of income on "needs" rather than the recommended 50%. Sean points out that expensive cars, extensive kids' activities, and premium services often start as wants but become perceived as necessities. Regularly auditing these expenses and asking "Is this truly necessary?" can free up significant money for savings and discretionary spending.
Track Every Transaction Manually for 30 Days
While budgeting apps are helpful, manually tracking every expense for a month creates powerful awareness and behavioral change. (29:29) Sean emphasizes that writing down each transaction - whether in a notebook, notes app, or simple list - forces you to consciously acknowledge every spending decision. This exercise often reveals surprising spending patterns and naturally reduces impulse purchases because the act of recording makes you pause and consider each transaction's necessity and alignment with your values.
Statistics & Facts
- Jay and his wife are spending approximately 75% of their income on "needs" rather than the recommended 50% in the 50/30/20 budgeting framework, with their actual breakdown being closer to "80/10/10" when including pre-tax 401k contributions. (25:55)
- The Federal Trade Commission has suspended the national Do Not Call Registry and fraud reporting platforms during the government shutdown, leaving consumers unable to report fraud or block calls through official channels. (01:59)
- During the pandemic, unemployment identity theft cases skyrocketed from representing just 1% of calls to the Identity Theft Resource Center to becoming their number one case type, and this elevated baseline has persisted even after enhanced benefits ended. (09:25)
