In this episode of Money Well Studio, hosts Julie and Jennifer take listeners on a guided tour through one of the most talked-about economic indicators: the inverted yield curve. What does it mean when short-term interest rates outpace long-term ones—and why does it often make economists sweat? From the basics of bond yields to the psychology driving investor behavior, the hosts break it all down with clarity and wit. You'll also hear the fascinating origin story of Campbell Harvey, the Canadian economist who first connected the dots between inverted yield curves and recessions. Along the way, Julie and Jennifer explore the Federal Reserve’s role, the impact of inflation and stagflation, and offer grounded advice for families looking to weather economic uncertainty with confidence and calm.

🍹 Cocktail of the Episode: The Tequila Sunrise

Just like the inverted yield curve, this drink starts sunny and takes a dramatic turn. Sip it as we dive into a conversation about shifting financial signals, investor psychology, and navigating uncertain terrain with style.

Tequila Sunrise Recipe

• 2 oz tequila
• 4 oz orange juice
• 1/2 oz grenadine (drizzled down the side)
• Garnish: orange slice & maraschino cherry

Instructions:

1. Fill a glass with ice.
2. Pour in the tequila and orange juice—don’t stir!
3. Slowly pour the grenadine down the side of the glass. It will sink, creating that signature sunrise gradient.

4. Garnish, toast to clarity, and enjoy!

✨ Episode Summary:

In this episode, Jennifer and Julie tackle one of the most underrated but life-changing money moves: budgeting! Whether you're rocking a steady paycheck, riding the waves of variable income, or just trying to tame the chaos of daily expenses, this conversation is packed with real-world advice and a lot of laughs.

The Budget template we referenced from the FTC can be accessed here: https://www.bulkorder.ftc.gov/system/files/publications/pdf-1020-make-budget-worksheet.pdf Enjoy and happy budgeting!

Our Drink Well Cocktail :The Nick & Nora Dry Gin Martini

Ingredients:

• 2.5 oz London your favorite Dry Gin
• 0.5 oz Dry Vermouth
• Dash of orange bitters (optional, but highly recommended)
• Lemon twist or olive for garnish

Instructions:

1. Chill the glass: Pop your Nick and Nora glass in the freezer or fill it with ice water while you prepare the drink.
2. Stir, don’t shake: Add gin, dry vermouth, and bitters to a mixing glass filled with ice. Stir for about 20–30 seconds until well chilled.
3. Strain: Empty the ice water from your Nick and Nora glass (if you chilled it that way), and strain the martini into the glass.
4. Garnish: Express a lemon twist over the drink and drop it in, or go classic with a single olive on a cocktail pick.

In this episode, we dive deep into the surprisingly fascinating world of interest ! We explore its ancient roots, the different ways it's been embraced (or banned) by cultures throughout history, and how it shows up in everyday financial decisions. From George Bailey's life lessons in It's a Wonderful Life to Bollinger-fueled wild parties courtesy of the LIBOR index, we unpack how interest can either build communities or cause financial chaos.

Along the way, we also sip on an "interesting" red wine — Battle of Toro from Spicewood Vineyards — a bold Texas blend that perfectly matches the spirit of this episode: strong, complex, and full of history.

You can buy a bottle here and sip along with us:

https://www.spicewoodvineyards.com/

- Jennifer & Julie