NerdWallet's Smart Money Podcast - Is 'Made in the USA' Still Worth It with Tariffs? Plus: Best Accounts for Your Home Repair Savings

Episode Date: May 15, 2025

When is buying “Made in the USA” worth it? Plus, learn where to stash savings for home repairs to maximize your returns. What does it mean when something is “Made in the USA”? Should you use a money market or high-yield savings account for home repairs? Hosts Sean Pyles and Elizabeth Ayoola discuss how to evaluate products labeled “Made in the USA” and how tariffs and global supply chains influence pricing and availability. Joined by NerdWallet senior news writer Anna Helhoski, they begin with a deep dive into how “Made in the USA” labels are regulated, the real-world impact of tariffs on costs, and why U.S. manufacturing isn’t as clear-cut as it seems. Then, personal finance Nerd Kim Palmer joins Sean and Elizabeth to discuss how to manage and rebuild savings after major home repairs. They cover the pros and cons of high-yield savings vs. money market accounts, strategies for prioritizing urgent repairs, and smart ways to automate your savings. You’ll also hear how to stay financially flexible, explore low-interest financing options, and use “mental accounting” to juggle multiple savings goals with clarity and confidence. Learn more about money market accounts: https://www.nerdwallet.com/article/banking/faq-money-market-account The free NerdWallet app makes it easy to be smarter with your finances because you can track, save and invest your money in one place. Download it today to set up your Atomic Treasury account and more: https://click.nerdwallet.com/3687710914/smpc In their conversation, the Nerds discuss: Made in USA meaning, FTC Made in USA rules, tariffs and prices, US manufacturing trends, buying American products, how to find Made in USA products, import tariffs effects, supply chain and tariffs, high-yield savings account vs money market account, money market vs savings account, best account for home repairs, home repair savings tips, sinking funds savings, budgeting for home repairs, saving after renovation, using 0% APR credit card for home repairs, home improvement budgeting, multiple savings accounts strategy, emergency funds after buying a house, prioritizing home repairs, savings account APY, Atomic Treasury account, saving for home maintenance, home equity for renovations, refinancing home repairs, saving 1 percent of home value, how to choose savings account type, home maintenance budget rule, saving buckets strategy, rebuild emergency fund, automatic savings deposits, smart home budgeting, save for home emergencies, and high-yield savings account pros and cons. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [e-mail]. Like what you hear? Please leave us a review and tell a friend.

Sean, what's the last thing you bought that you know for certain was made in the United States? That would have to be this pair of jeans that was a little pricey, I assume, because it was made in the US. But they are completely worth it because they fit me perfectly. Okay, you're going to have to give me the name of the jeans after the show because I love a good pair of jeans. This episode, we're looking at what it really means for a product to be made in the United

States and what we're all willing to pay for that label. Welcome to NerdWallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles. And I'm Elizabeth Ayola. This episode, we answer a listener's questions about how to rebuild their savings after a big expense. But first, our weekly money news roundup, where we break down the latest in the world of finance to help you be smarter with your money. Today we're talking about why it isn't always easy or economical for products to be made in the USA. Our news colleague, Anna Helhoski, is here with more details. Hey, Anna. Thanks, Sean Elizabeth.

We've talked a lot over the last few months about how tariffs can impact prices, and that's got me thinking about products that are made in America. People certainly like the idea of Made in the U.S. A November 2024 poll conducted by Morning Consult on behalf of the Alliance for American Manufacturing showed that 60% of respondents made the effort to buy made in America products over the previous 12 months. And 82% of Americans would buy more made in America products if large retailers made them more available. Now, the Alliance for American Manufacturing has its pony in this race, but let's assume that this overwhelming

desire for homegrown products is true. I've looked and it can be a challenge to find goods that are actually made in the U.S. Why is that so difficult, Ana? Well, because what constitutes an official Made in America product is up to the Federal Trade Commission and it has been for decades. In 1997, the FTC provided some guidance for companies to use the Made in USA label. The standard is that all or virtually all of a product advertised as Made in the USA must be made in the US. A company doesn't have to disclose if their product is made in the US, but if it wants to label it made in the US, then it must follow the all or virtually all standard laid out by the FTC.

Okay, and what does virtually all mean in this context? So virtually all means that a product manufactured in the US could still use foreign imports as part of the production process. Many American companies with manufacturing in the US will still rely on global supply chains to complete products. Crayola is a really good example of this. Its corporate headquarters is in Pennsylvania, and it also has manufacturing facilities there and in Mexico. Like many US-based companies, Crayola is not operating fully independent of global supply chains.

And for that reason, tariffs present a challenge for so many US companies. And what are some of those challenges? Well, it means US-based companies will face import costs for components that they require from foreign countries. And they're likely to pass those extra costs along to US consumers, at least in part, if not fully. But many of these products likely can't be made entirely in the US right now, so there's not much choice they have there. A car is a really great example. Huge auto companies are based in the US. Ford, General Motors, and Stellantis. And they may assemble domestically, but assembly is the final step in the manufacturing process.

It takes something like 30,000 parts to make a car. So somewhere in that sourcing, producing, and shipping processes are going to be non-American goods. And every time those parts cross borders, they'll face tariffs. So not only are US cars not really 100% made in the US, they're likely to get more expensive the longer tariffs are in place. Pharmaceuticals are another example. A US company may produce a finished product, say a bottle of pills, in the US, but its

active pharmaceutical ingredients, or APIs, are crucial to finishing it. Most of those APIs are going to come from China. And those APIs are currently subject to tariffs. So it's likely that the prices of drugs that include foreign-sourced components will increase. President Trump has said he thinks tariffs will bring manufacturing back to the US. Does that seem likely, and is it happening already? Some companies may still find it cheaper to produce in lower cost countries rather than return fully to the U.S. even with tariffs increasing shipping costs. That said, investment

in U.S. manufacturing is certainly happening. The U.S. Census Bureau tracks manufacturing construction spending and its recent report released on May 1st shows that spending in March 2025 was 3.7% higher than a year ago. It's generally been on a steady incline since 2011 at the tail end of the Great Recession. But companies that are investing in US manufacturing can't get up and running in a day. So even if tariffs prompt companies to reshore, there will be a lag before they can get those factories built, hire workers, and get production running. So it'll take time for those newly US-made products to hit the shelves. In the meantime, it can take some digging to figure out if something that claims to be made in America actually is. And it's not always obvious.

But to a lot of consumers, most I'd wager the origin of a product doesn't necessarily matter. I'm curious if it's something that either of you actually think about while you're shopping. Not really, honestly. I care more about the quality of the product as opposed to where it comes from. But I will say that I do try to support products that are made ethically. Yeah, I'm similar to you, Elizabeth. I'm more concerned with what a product is made of rather than where it was made. What about you Ana? Sort of the same. I think the only thing that I think about is in the kitchen.

And by that I mean anything that comes in contact with food or drink. So several places where things like plates and mugs are often manufactured, they can have more lax rules when it comes to lead, toxins, or heavy metals and ceramics. And I love to find Made in America in that case, but when I was last buying new dishware, it was really hard. The selection was just really limited. So to find what I wanted, I had to look elsewhere. I have plates made in Portugal, glassware from France, mugs made in the US, but if I wanted to buy those plates or glassware now, they'd probably be more expensive because of exchange rates and tariffs.

So I'd probably look a little bit harder if I needed some new stuff to find something made in America. Of course, if the price was right. Yeah, and the price can be a deal breaker for a lot of people. Yeah, exactly. Bigger companies that source from other countries may be facing higher prices to import, but it's still maybe cheaper to get those products and materials elsewhere. Now, something that's made in America, even if it's a hundred percent source and manufacturer in the US, might not actually save you money. Even with tariffs in the supply chain mix, made in America isn't always cheaper and those products may not be higher quality than something that's imported either. It

really depends on what you're buying, what the products are made of, etc. The bottom line is, always shop around. Okay. So if you want to buy something made in the US, what's the best way to go about it? How can you find Made in America products? It can take work to figure out if something that claims to be made in America actually is 100% made in America, but labels help. So if you pick something up in a store, there's often a made in X country listed on the label.

If that maker is following the rules, then made in the US should mean most, if not all of the product is made here. There are also directories online that'll list companies that advertise US made goods. But if you're buying something online, look at the product specifications to see where it's sourced.

This was an example as I was doing some research. I'm looking for a cast iron pan right now. And looked at All-Clad first. It's a really big company and their products are made in the US, except not all of their products are. Its stainless steel pans are made 100% in Pennsylvania, but its cast iron pans are made in Vietnam. And to be clear, I love my other All-Clad pans and they're not hiding the fact that their cast iron skillet is made in Vietnam. It's right there in the product description. But if you're a shopper who is in the market

for a cast iron pan and it really matters to you to have that made fully in the US, then you might look elsewhere. It is always gonna depend on your personal preferences and what works for your budget. Hmm. Well, thanks for walking us through it, Anna. No problem. Up next, we answer a listener's question about how to rebuild your savings.

But before we get into that, a reminder listener to send us your money questions. Do you want to know the smartest way to budget for your summer vacation? Or are you in the market for a new credit card but aren't quite sure how to find the one that's best for you? Leave us a voicemail or text us on the Nerd Hotline at 901-730-6373. That's 901-730-NERD. Or you can email us at podcast at nerdwallet.com. Now let's get to this episode's money question. That's coming up in a moment.

Stay with us. We are back and answering your money questions to help you make smarter financial decisions. This episode's question comes from Kim, who sent us an email. Here it is. Hello nerds, my husband and I purchased our first home in June of 2024. We love our new home, even though it's an 87-year-old log cabin with some needed repairs. We have a little bit of savings for some of the repair costs, but I'm fearful that it will take us a long time to replenish the savings pot for home repairs.

At the moment, it's all in a money market account. Would it be better to have our home repair stash in the high-end savings account versus a money market account? Thank you, Kim. To help us answer this listener's money question, we have Kim Palmer, a personal finance nerd. Welcome back to Smart Money, Kim. To help us answer this listener's money question, we have Kim Palmer, a personal finance nerd. Welcome back to Smart Money, Kim. Thank you so much for having me.

Kim, to start with, our listener, whose name is also Kim, in case you didn't catch that, is worried about spending all their savings on home repairs. How should the listener think about spending money from their savings pot? Well, first of all, congratulations to our listener. It sounds like they are really excited to be on this journey, and they seem to really be excited about the home improvement process

and to be ready to embrace it. And that's great because it can help you build the value of your home. But at the same time, it is important to think about your other financial priorities, too, and just to leave some room in your budget to handle the other unexpected expenses that can pop up. So even though home improvement has really taken center stage in your financial life, you're still leaving some space to think about some other goals. That's a great point because I was a little worried hearing this listener's question about

whether they're going to put all of their savings into home improvements that can make them pretty financially vulnerable. So Kim, how do you suggest that listener Kim and other folks listening manage their financial priorities and not end up putting themselves in such a vulnerable spot? Well, as someone who also recently purchased a home, I completely understand this impulse

to spend all of your savings on home repairs, but you do want to make sure you're thinking about those other priorities too. So one thing I would recommend for our listener Kim is to write down all of your financial priorities and that might include things like paying off debt, building up an emergency fund, maybe saving for retirement. Everyone's list will look a little different. And then you can assign a target percentage of your savings for each goal.

And that's just based on your own prioritization of each one. So maybe right now, home repairs are really taking top priority. So you're going to put 50% of your savings toward that, but then you still have 50 percent left for other goals, like saving for emergencies, for example. I have also learned the hard way that home repairs really have no limit.

I mean, there's always something more you can do for your home. So it can be a really slippery slope if you don't put up some boundaries as to what you're willing to spend. There is always more you can spend on your home. I really feel that. My partner's house is from the 1950s, which means that it's about 70 years old. And we have had loads of home repairs

and renovations over the years. I mean, the house didn't even have insulation when we first moved into it. And there are times where we occasionally wonder whether renting might be the easier and less expensive option. So, Kim, your advice to put home renovations in the context of other financial and life goals and maybe temper some of the eagerness to go all in on

renovations is a really smart call. I'll also add that it's even more important to build up and maintain an emergency fund when you're a homeowner, because maybe you're trying to put a new backsplash in the kitchen and then all of a sudden your heater goes out, and you have to pay for that too. A sufficient emergency fund can keep you from going into debt to make that repair, because again, homes can be complete and endless money pits, so listener Kim, please look into your emergency savings

and see whether you do have three to six months of expenses saved up. KIM savings and see whether you do have three to six months of expenses saved up. Kim, since it seems like you're going through a similar situation as a listener, Kim, can you talk about how you're thinking about using savings for home improvement projects and then rebuilding your savings or emergency savings fund? Yes, I am definitely in the process of rebuilding my savings right now because for me it was last year when I had a lot of home improvement expenses. I did try to primarily use my savings, but for one project, window replacement,

which as you all might know, is very expensive to replace your windows. I used a low interest financing option that was actually offered through the window replacement company. And that seemed like a really helpful way to spread out my cost. So I didn't have to pay everything upfront. I ended up being able to pay it off early,

and it worked out really well for me. But it's really all about looking at your financing options and making sure you're getting as low a rate as possible, or even a 0% rate. That's a great point. Sometimes home improvements can be an area where it's not a bad idea to take out some kind of debt, and I don't often suggest that people take out debt, but using something like a credit card with a period of no interest

or even tapping your home's equity can make it a lot easier to do your home repairs and remodels without completely depleting your savings. But as ever with debt, if you're going to take it out, make a plan to pay it off. Kim, have you ever thought about using something like a zero APR credit card for your home repairs and renovations and all that? I have, and I have done that in the past. I didn't use it for this most recent particular renovation, but previously I used a 0% APR credit card

and I found it really helpful because it basically let me spread out my costs so it wasn't such a shock to my budget, which I couldn't necessarily afford in one particular month. One thing I will note, though, is that you have to make sure you're making those minimum payments on time every month because that way you can maintain that 0% offer. Also, I want to mention that Kim can prioritize home repairs in terms of urgency. So what comes to mind is maybe she focuses on repairs that could become more expensive

later if they aren't addressed immediately. For example, let's say you have mold somewhere in your house, that's probably going to be more urgent than a more aesthetic improvement like swapping out a light fixture. And it can be a good idea to keep an emergency fund intact for unexpected expenses and then start a new savings fund for other things like home repairs. I love the strategy of having multiple savings accounts because it really helps you stay organized and just stay motivated for that particular goal.

So for example, you might have one savings account for home repairs or even a particular home renovation goal. You could have another account for a future vacation, a third for emergency savings. It's just a way of mental accounting that can just help you visualize your goals and stay on track. This is a strategy that I've used for years that's allowed me to make a lot of continuous progress

on competing savings goals. And Kim, you use the term mental accounting, which some folks might not be familiar with, but it's really handy. Mental accounting is when you essentially place different values on your various pots of money, even though it's all essentially your money and has the same inherent value as your money. Think about when you get money back from returning something at the store and it feels like free money. It's like a windfall that you get all of a sudden. In reality, it's just your same money back to you. But in the world of

Girl Math that we heard so much about over the past couple of years, it feels like this really exciting bonus. Savings buckets like you described Kim and what other people call sinking funds are the more productive version of mental accounting. And when it comes to saving for your home's maintenance, a rule of thumb is to save between 1% and 4% of your home's value each year. So if your home is worth $500,000, try to save at least $5,000 a year. And yes, I know that is a lot of money,

but again, homes are expensive money pits, so try to do what you can. I love the ideas of sinking funds, and that is something honestly I don't do. I do have a savings account and I have a spending account, and I usually pull from my spending account if I have something non-emergency to spend on. I also find that having too many accounts makes me dizzy.

So Sean, how do you stay organized with all the accounts for all the things? Well, you have to tailor the number of accounts that you have to what you can reasonably manage personally. I find it really simple and I have around 10 accounts, I think, at this point. I know it's a little bit nutty, but each one has its own purpose and it works for me. And it's not as wild or complicated as it might sound. I have most of my accounts at the same bank, so I just log in and check my balances.

But having my different accounts with their specified purposes and the various amounts that I have automatically dropping into them via direct deposit each pay period just keeps it super simple. Although of course it did take a little bit of time and thought to set up initially. Oh, that makes sense. And I like the idea of having most of the accounts

at the same bank. That feels a little less chaotic. All right. Our listener also had a question about whether they should keep money in a money market account or a high-yield savings account. Kim, can you talk to us first about what a high-yield savings account is?

I find some people mistake them for investment accounts. A high-yield savings account is bank account where you're earning a relatively high yield on your savings. The APY or annual percentage yield, it can be as high as 4.5 or even 5%. The exact yield really varies depending on the current interest rate. But it's generally much higher than what you see from a traditional bank account or a checking account. And another

plus is that the FDIC typically insures bank accounts up to $250,000 so you know your money is safe. And I can quickly explain what money market accounts are. So they're essentially savings accounts that have features of your traditional check-in accounts like debit cards and check writing features as well. Now that can be a con for some people, talking about myself here, because easy access can encourage spending. Since the listener would be using the money for ongoing home repairs,

though, a debit card could be helpful. Now, a downside to MMAs or money market accounts, sometimes they have higher minimum deposit or balance requirements than high-yield savings accounts, and that could range from hundreds to thousands of bucks. The minimum balance requirements can also be tricky if you need to use your money to pay for something like an emergency, because if you don't maintain that minimum balance, you could incur fees. We have an article on money market accounts that you can find in the episode description if you want even more details. One other option that's more on the investment side of things is an Atomic Treasury account, which is available to open right in our free NerdWallet app.

So basically, an Atomic Treasury account is an investment backed by the U.S. government and typically offers a higher APY than a high-yield savings account. The exact APY varies, but as an example, as of late April, you could earn a 4.39% APY on T-bills with the Atomic Treasury account. Now they are slightly less flexible than an MMA or a savings account, since they don't have debit cards or allow you to write checks, but you can withdraw your money at any time. Another thing is that you also don't pay any state or local taxes on interest earned, though you will owe federal taxes, like with the interest you earn on a savings account.

We'll put a link in the description of the episode if you want to learn more about Atomic Treasury accounts. And the page includes a calculator you can use to see how much that you could potentially earn as well. Kim, how can someone decide whether to place their savings in a money market account, a high-yield savings account, or something like an Atomic Treasury account? And in this listener's case, which might be better? Well, everyone's decision will look a little different, but the main choice really boils down

to how much flexibility you want with the high-yield savings account generally offering the most flexibility in terms of minimum balance requirements that you mentioned, Elizabeth. All of the options offer higher yields than a traditional bank account or checking account, so definitely something to consider.

And if the minimum balance isn't your primary concern, you may just shoot for whichever has the best yields so you can maximize the interest that you're earning. Also, ease of access can be an important factor, so whether you choose to go for a high-lid savings account or a money market account, consider choosing one with access to a debit card so you can easily pay for ongoing repairs. Another big part of our listeners' question

is around how to rebuild your savings after using them for home repairs. Another big part of our listeners question is around how to rebuild your savings after using them for home repairs. So Kim, what suggestions do you have for listener Kim on this? After renovation, when you're trying to build up savings, it's really more important than ever to make a budget and stick with it, looking for ways to eliminate all those extra expenses

that really add up. That's what we did in our family. We tried to cut back on extras like subscriptions and ordering takeout to use that money to put towards rebuilding our savings. That's a really good tip. And then once listener Kim has freed up the money in their budget, they could look into setting up automated deposits from their paycheck or their checking account into whatever savings vehicle they decide to go with. That way they can ensure

that they're making steady progress on building up their savings again. Kim Palmer, thanks for coming on and answering this savings-related question. Of course, thank you so much for having me. And that's all we have for this episode. Remember, listener, that we are here to answer your money questions. So turn to the nerds and call or text us your questions at 901-730-6373. That's 901-730-NERD. You can also email us at podcastatnerdwallet.com, or if you are listening on Spotify,

you can leave us a comment right on the platform. Join us next time to hear about whether to pull back on retirement account contributions in times of market turbulence. Follow Smart Money on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes. Here's our brief disclaimer. We are not your financial or investment advisors.

This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances. This episode was produced by Tess Viglen, Anna Helhawski, and Hillary Georgie. Hillary also helped with editing. Nick Kersame mixed our audio, and a big thank you to NerdWallet's editors

for all their help. And with that said, until next time, turn to the nerds.