youthmoney

Buckle sells clothes to young people. To be more precise, its 388 stores around the US offer a unique mix of high-quality, on-trend apparel, accessories, and footwear to fashion-conscious young men and women. That’s according to the guff on its website.
 
There’s nothing remarkable about what it sells. But how it sells is a bit different.

It is now offering young customers the chance to “layaway” clothes that they want, but can’t immediately afford.

The customer puts down a 20 per cent deposit. They then have eight weeks to pay the balance in fortnightly instalments.

As a payment option, layaway is a throwback to pre-credit card days of thrift. It’s a reminder of the Great Depression. Analysts say it seems to work, with Buckle outperforming competitors in November and December, according to this piece in yesterday’s Financial Times.

The benefit to young people who can’t get credit, or who don’t want debt, is obvious. As practical training in saving for desirable items,  it is hard to beat.

Buckle is not alone in offering modern versions of the 1930s-style layaway options. Online retailer eLayaway offers variable payments on items such as Sony Playstations or iPods.

It’s all radically different from the I-want-it-now credit mentality. You don’t get the goods until you’ve paid the final instalment. Some schemes charge a fee. Others will simply keep the deposit if you don’t get round to finishing the payments. Which is a distinct downside. But not half as aversive as racking up unaffordable interest charges or late-payment penalties on a store or credit card.