Buy Now Pay Later offers convenience, but it can come at a cost. Find out which generation relies on it the most.

Answer: 8% 

Questions:

• Where have you seen the option to shop with Buy Now Pay Later? Have you used it?
• Why might someone use Buy Now Pay Later for necessities (eg. groceries, bills, personal care items)?
• What is a risk of using Buy Now Pay Later for necessities?

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

Behind the numbers (Nerdwallet): 

"One-fourth (25%) of Americans used BNPL in the past 12 months, according to the survey, with younger generations and parents among the groups more likely to make use of the service. Well over one-third (37%) of parents of minor children have used BNPL in the past 12 months, compared with 20% of nonparents of minors. And 40% of Gen Z (ages 18-27) and 36% of millennials (ages 28-43) have used BNPL during that time, compared with just 20% of Gen X (ages 44-59) and 12% of baby boomers (ages 60-78). "

"Credit tip: If you rely on BNPL because your credit prevents you from getting a traditional credit card, you could consider getting a secured card. Because these cards require that you put down a refundable security deposit upfront, which becomes your credit limit, they can be easier to get and prevent you from amassing unmanageable debt. However, if you’re struggling to cover the costs of necessities, the required deposit makes this a goal to work toward, perhaps seeding the card after a windfall such as a tax refund or gift."

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.

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