Why millennials and gen-Zs are jumping on the buy now, pay later trend

Many younger consumers say they use buy now pay later because they want new clothing or electronics and don't have the money, said Joseph Flowers, a full-time content creator. The 22-year-old regularly updates his wardrobe for his social media videos and uses Afterpay when a bill tops $300.

Breaking up costs because it "feels smaller" is not uncommon among younger generations, who struggle to think about or plan for the future, said Sarah Newcomb, a behavioral economist at financial services firm Morningstar. In the U.S., consumers focus on material goods rather than saving, a problem that social media is amplifying, she added.

Eighteen-year-old Ogbonna typically uses Klarna for clothing company Shein purchases over $100 because four payments of $25 "sounds cheaper even though it's not," she said. At least four of those interviewed echoed that sentiment.

Source: News Formal (newsformal.com)

This will turn out well when the recession hits.

thanks

Living above your means americans probably do a lot more for our economy than all the billionaires combined.

Buy now pay later is just a modern day credit card, and still a debt trap. Save for it and pay cash is still the best way.

What is this crazy new trend where people can buy now and pay later? Maybe we can call it 'credit' where banks will issue 'credit cards' for people to buy stuff with. This is very exciting! Can't wait till this takes off.

Because they want to repeat the “layaway” mistakes of their grandparents and are too clueless to know the history

Well if you die of covid... guess what.

They know the government will come in and pay it for them.

Its called credit… been here forever.

This should end well.

Buy now pay later is not a new trend- it’s called a credit card or installment plan.. not sure why this is being seen as a novel concept now?

Trend? That’s just another credit card...50 years off the find standard! Are we better in debt? Or not

Because they don't understand debt. Sure, I do it. But I hate myself for it like a responsible adult.

Needs banned. It is debt farming our young.

This was quite big. Full video here

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