Summary

Gen Z is increasingly relying on “buy now, pay later” (BNPL) services for holiday shopping, with spending projected to rise 11.4% this year, totaling $18.5 billion.

These services appeal to younger consumers with limited credit histories but can lead to overextension, as they lack centralized reporting and encourage overspending.

Experts warn of accumulating fees, particularly when BNPL plans are tied to credit cards.

With inflation and rising credit card debt already burdening Gen Z, consumer advocates caution that these services may worsen financial instability despite their convenience.

  • 01011@monero.town
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    16 days ago

    You cannot budget your way out of poverty. “Financial literacy” is just capitalists kicking the can down the road.

    • milicent_bystandr@lemm.ee
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      16 days ago

      It’s not, though. Financial literacy includes things like, not spending money you don’t have. When you take these predatory loans to get goods, you end up more enslaved to the capitalist system and to those who have money to lend.

      Financial literacy is not a cure-all, just like normal literacy doesn’t make you understand Shakespeare.

      • Flying Squid@lemmy.world
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        16 days ago

        And they call them predatory loans for a reason. They are coming to you and they are going to hurt you. But we don’t teach kids this before they get into the adult world and this is the result.

      • captainlezbian@lemmy.world
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        16 days ago

        Yeah, and financial literacy alone may not get you out of poverty, and it definitely won’t get everyone out of poverty, but among those with the possibility of class mobility financial literacy will play a role in where they wind up.

    • Flying Squid@lemmy.world
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      16 days ago

      I think it is highly unlikely that all of the Gen Z people getting these loans came out of a life of poverty.