I got an email from a financial website on Substack, entitled Pivot and Flow (J.L. Bernstein). At first I was inclined to delete it, but held up for some reason. Then the story hit me like a punch in the gut.
"She Bought a Burrito on an Interest-Free Installment Plan
She's 28, sitting in her car in the Chipotle parking lot, her thumb hovering over 'Pay in 4.'
It's a $34 order. Two burritos, chips, a drink. Her son's inside with her mom. He's seven and he asked for Chipotle because his friend's family gets Chipotle and he wanted to know what it tastes like.
She knows she shouldn't. But her checking account has $47 until Friday. Rent took everything. The light bill ate the rest. She picked up an extra shift but that won't hit until next week.
She clicks 'Pay in 4.'
Here's what we built: a system so elegant that a mother can finance her son's first burrito with no human interaction at all. No bank teller to look her in the eye. No loan officer to ask uncomfortable questions. Just her thumb, a screen, and an algorithm that already knows her checking balance is $47.
The food is gone in fifteen minutes. The debt persists for six weeks."
End of long quote.
But let's think of something more cheerful, such as the miracle of a green leaf in a gawd-forsaken wasteland like Arizona:
Comments
We loved seeing the desert green, the last time we were there.
Stay Safe and Enjoy!
It's about time.
Rule #1: The food and drink are better and cheaper at home. Don't eat out.
Rule #2: NEVER buy anything at a grocery store unless it's on sale.
Rule #3: To maximize sales, shop at more than one place for groceries.
Rule #4: Grow your own food as much as possible.
"One last note, PayPal insists on offering financing(!). I think you can click an option to split the purchase into four payments. I can’t eliminate the button. But just because you can doesn’t mean it’s a good idea. I wouldn’t sleep at night if I thought someone was paying interest for months(!!!) on a cheap and fun little gadget I made.
Please do NOT pay interest on a payment plan for a $12.50 object! Just don’t! The stuff I’m selling costs less than a pizza, you can handle it. Don’t let bankers “monetize” any more than they already do."
Mom taught me if you do, you're living beyond your means.
Only trouble will come from that.