The whole idea of layaway started in the ‘30’s – consumers who saw something they wanted but didn’t have the money to buy it would put a down payment on it and pay the merchant periodic payments until it was paid for. Then the merchant would release the item to the customer.
Of course, that was before credit cards and the whole buy-it-now-and pay-for-it-later culture that we’ve been in for the past 15 years or so. Add in our growing level of cynicism and memories of retailers suddenly going out of business (remember Circuit City last Christmas?) and you can easily see why layaway has gone the way of the do-do bird.
In 2006, Wal-Mart discontinued its layaway service saying that “the layaway process has really become very obsolete." Wal-Mart said demand for the service had dropped off, as consumers increasingly rely on credit cards and gift cards to pay for purchases. The idea of waiting to complete a purchase was no longer attractive.
Not so fast.
While economic conditions are beginning to look up, Kmart realized that the tough times aren't over yet and some families may be experiencing anxiety in regards to making back-to-school purchases. From school supplies to new clothes, back-to-school shopping is an added expense that can strain an already tight budget. Kmart's layaway program enabled moms to plan ahead for worry-free back-to-school shopping. Moms can use layaway to reserve "hot" back-to-school items early, pay over time and pick them up in time for school.
Of course, there is--you knew it was coming - -a website that will let you buy just about anything you want on layaway: Check out eLayaway.com. As it says on its site, it "allows you to buy the products and services that you want by paying for them through manageable monthly payments that you set." They have a calculator that will let you figure out the purchase price over 3 to 13 monthly payments. Payments are automatically deducted from your bank account every month. The fee for the service is 1.9% for every $100 you spend. Once you've paid for your TV, shoes, your fishing reel -- you can buy about anything -- then it's delivered.
Shopzilla has a new campaign called. “Layaway Black Friday.” You have to wonder that as the new credit card rules kick in during the coming months, will we migrate to a save-to-spend mentality?
Curious minds want to know…..
Sunday, August 30, 2009
Sunday, August 23, 2009
Back to School and the Power of Parents
It’s that time of year already – back to school. With the abundance of “teachable moments” these days, will this be the year when parents step up and insist that schools include financial education as part of the school curriculum? In light of the current economic condition, can we agree that a financially educated populace would have mitigated some of the devastating results of the current recession?
It might surprise you to know that New Hampshire is the only state in New England that has a graduation requirement for Economics. And embedded in the curriculum framework for that requirement is a standard for personal finance. The details are posted on the NH Department of Education’s website under the Curriculum Frameworks for Social Studies.
And yet, exactly how this requirement is met is left to the discretion of each school district. In many cases, since Economics falls under the Social Studies discipline, this curriculum is often taught by history teachers with little training in economics. Compound this with a lack of assessment testing for social studies and we’re left with a wide disparity within the state on how our children are taught any elements of money management.
Parents hold the key to this. There is a hierarchy to education and school boards take their marching orders from the parents in their communities. If parents want a higher emphasis on personal finance in the classroom, then they need to tell their school board. The state requirements and frameworks are in place; school boards do not need to reinvent the wheel to accomplish this. Their role is to manage and allocate resources to accomplish the desires of the community.
Resources. This word is often used as the argument on why we can’t do something. However, when it comes to the topic of personal finance, the argument is weak. There are vast amounts of personal finance curriculum available to educators and school districts that are either no cost or low cost. At the Jump$tart Coalition Clearinghouse, there are well over 700 types of curriculum and teaching materials – 45% of which can be downloaded for free. We at NH Jump$tart know from direct experience that teachers want to teach this valuable life skill to their students. We train over 150 teachers each year at our annual teacher conference. If teachers want to teach personal finance and there are plenty of available teaching materials to accomplish that, then what is the problem?
The realities of today have created the perfect teaching moment to have with our kids. Show them that old-school thinking of not spending more than you make, saving for a rainy day, and pay yourself first are the best ways to get through good and bad times.
Kids are facing a more financially-complex world than we ever could have imagined. Having a strong understanding of personal finance is critical to their future. Parents: the power to make a difference is in your hands.
It might surprise you to know that New Hampshire is the only state in New England that has a graduation requirement for Economics. And embedded in the curriculum framework for that requirement is a standard for personal finance. The details are posted on the NH Department of Education’s website under the Curriculum Frameworks for Social Studies.
And yet, exactly how this requirement is met is left to the discretion of each school district. In many cases, since Economics falls under the Social Studies discipline, this curriculum is often taught by history teachers with little training in economics. Compound this with a lack of assessment testing for social studies and we’re left with a wide disparity within the state on how our children are taught any elements of money management.
Parents hold the key to this. There is a hierarchy to education and school boards take their marching orders from the parents in their communities. If parents want a higher emphasis on personal finance in the classroom, then they need to tell their school board. The state requirements and frameworks are in place; school boards do not need to reinvent the wheel to accomplish this. Their role is to manage and allocate resources to accomplish the desires of the community.
Resources. This word is often used as the argument on why we can’t do something. However, when it comes to the topic of personal finance, the argument is weak. There are vast amounts of personal finance curriculum available to educators and school districts that are either no cost or low cost. At the Jump$tart Coalition Clearinghouse, there are well over 700 types of curriculum and teaching materials – 45% of which can be downloaded for free. We at NH Jump$tart know from direct experience that teachers want to teach this valuable life skill to their students. We train over 150 teachers each year at our annual teacher conference. If teachers want to teach personal finance and there are plenty of available teaching materials to accomplish that, then what is the problem?
The realities of today have created the perfect teaching moment to have with our kids. Show them that old-school thinking of not spending more than you make, saving for a rainy day, and pay yourself first are the best ways to get through good and bad times.
Kids are facing a more financially-complex world than we ever could have imagined. Having a strong understanding of personal finance is critical to their future. Parents: the power to make a difference is in your hands.
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