![]() ![]() VANEK SMITH: The government has been cracking down on these fees. PRESIDENT JOE BIDEN: Something that's weighing down family budgets - unnecessary hidden fees known in the parlance as junk fees. President Biden even brought up fees as a top concern. The White House estimates Americans now spend about $65 billion on fees every year. VANEK SMITH: Galak says fees have always been around, but these days they are cropping up everywhere. And the data is pretty clear that they don't notice. GALAK: These fees where it's not part of the thought process in choosing the product - if you sneak it in, then they might not know. Study after study shows when we make buying decisions, we only look at the listed price. VANEK SMITH: And Galak says fees are the perfect silent budget killer. Like, I'm standing at the hotel check-in desk. GALAK: And by the time the fee is tacked on, it's too late. And once you do, it strikes - one fee, another fee. It is a price hike lurking just beneath the surface, waiting for you to click on that tantalizing $200 airfare deal or order that refreshing $4 iced coffee. VANEK SMITH: This is what's known as stealth inflation. JEFF GALAK: It's a way for firms to raise prices without raising prices. He says I have just fallen prey to inflation but in a different, deadlier form - fees. Jeff Galak is a professor of marketing at Carnegie Mellon. Just when you thought it was safe to go back into the economy, you end up paying 30 bucks for a hamburger. So my burger and fries just went from $14.07 to $27.81. So the subtotal's $14.07 - seems pretty good. So what is this lazy dinner going to cost me? ![]() If you, say, happen to order some delivery food when you're feeling very lazy on a Monday.Īnd fries - got to have fries. Just because you don't see it, just because the water looks calm and inviting doesn't mean it's not there, waiting to strike. STACEY VANEK SMITH, BYLINE: Inflation is like a shark. And as Stacey Vanek Smith reports, these little costs are actually an old budget killer in disguise. And while they might look small, they can add up fast. They go by many names like booking fee, service fee, processing fee. You may have noticed some little budget-busters on your receipts lately. ![]()
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