How many people are getting what they want now, only to find themselves in trouble later?

Answer: 42%

Questions:

• Have you seen the "buy now, pay later" options when you buy items online? If yes, have you ever used it? Why or why not? 
• What are the pros/cons of using this payment option? 
• Why do you think so many consumers have struggled to make on-time payments with "buy now, pay later?"

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Acorns): 

The share of American adults who’ve used buy-now, pay-later services in 2022 has increased to 43% — a 12 point jump from 2021, according to LendingTree.

Of those who have used these kinds of services, 42% have had to pay some kind of late fee. “That’s a really big number,” says Matt Schulz, chief credit analyst at LendingTree. “That means an awful lot of people have paid late with these loans.”

It’s particularly worrying because, while the idea behind buy-now, pay later is not new, they’ve only become widespread across online retailers in the past few years, Schulz says.

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Introduce this payment method of "buy now, pay later" to your students through this FinCap Friday episode.  

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It's been described by teachers as "better than TV." It's PD on your schedule at your own pace. Check out one of the 50 NGPF On-Demand modules (and earn Academy credit too)! 

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.

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