Many younger people have never even heard of the term "layaway".
It is essentially a way to buy something in a store without having to pay for it all up front.
However, you don't actually receive the product at that point.
Instead, you pay in installments to the store until the full price is met and then you're able to pick it up and take it home.
If you're scratching your head and wondering "Why would anyone do something like that?" then you're not alone.
Because in the past couple of decades, the concept of putting something on layaway has been replaced almost entirely by one thing: credit cards.
The thought process of "I'm going to be able to pay for this soon anyway, so I'll just put it on my credit card" has plunged our nation into serious and record consumer debt.
Because, as we all know, that purchase rarely gets paid for in the time frame you had originally intended (or at least rationalized in your head or to your spouse in the store).
So interest racks up over months and months and the item can often end up costing you significantly more than the original price.
These days, it's so easy to get a credit card that kids just turning 18 are already going into debt.
These are the same kids who couldn't tell you what the term layaway even means.
To them, if they want something...
there's no need to wait to save up for it.
Just charge it to the credit card and eventually get around to paying it off.
Unfortunately, for many of their parents who grew up with THEIR parents putting purchases on layaway, the thought process is the same.
We have become a nation of have-to-have-it-now consumers, regardless of the long term costs.
There are studies showing that layaway is making a comeback, though.
Since 2008, the United States has been in a recession and consumers are slowly being forced to be smarter with their finances.
Credit card spending, as well as overall spending, is down significantly.
But people still need to plan for purchases.
Kids are still going to have birthdays.
Christmas is still going to come every year on December 25th.
So stores are experiencing somewhat of a layaway "revival".
It is especially prevalent during the holiday shopping season.
Major stores like Sears and K-Mart are even promoting their layaway options in their Sunday ads! One of the most shocking news stories regarding layaway that I have seen occurred on October 12th of this year (2009) when Apple Computer announced that they will allow layaway purchases at their retail stores.
Apple is often viewed as the computer company for the wealthy and style conscious.
To hear that they are promoting layaway purchases at their stores is sobering news about the state of our economy, I must admit.
Sobering as it may be, however, it is good news because it shows that the demand for layaway is strong enough now for companies like Apple to embrace.
A stronger demand for layaway purchases means that consumers are being smarter about their purchases and not going into reckless debt during the holidays just to afford what they want.
Bad news for credit card companies, but I figure that they're still going to be doing just fine for years to come.
It's hard to feel sad for credit card companies, really.
With their outrageous fees and predatory tactics, they are about the lowest form of business I can think of.
I am cheering on layaway from the bench and I hope that it is successful for stores who are allowing it again.
Any sign of smarter consumer spending and less consumer debt is a good thing, in my eyes.