Parents comprise the bulk of holiday shoppers. No surprise there.
I don’t know many moms or dads who look forward to disappointing their flesh and blood on Christmas morning. On the contrary, the majority of parents–regardless of their socioeconomic status–are willing to do just about anything to ensure their children enjoy a very merry holiday.
Despite the fact that millions of Americans are out of work and the economy is still in the dumpster, retailers are still pushing their wares–mostly to pint-sized customers.
So what’s a cash-strapped parent to do when her kid’s wish list is taller than the actual child?
Layaway.
As in, you see something you absolutely must have, but don’t have enough money to purchase it at the moment, so you put a little cash down and the store holds the item while you pay off the remaining balance over a set amount of time.
My experience with layaway is limited to an episode of “Good Times” in which Willona was trying to figure out a way to purchase a big ticket item for Penny.
Layaway seemed so 70s to me until a few months ago when Wal-Mart, Toys R Us and Kmart decided to make it hip again.
Some economists are now referring to the shopping option as a “cultural fad.”
Seems like a stretch to elevate a payment plan to such heights given that its resurrection speaks to the nation’s bleak economy.
Regardless, layaway is a viable option for many parents looking to make their child’s Christmas dreams come true. However, before you select the service to pay for your kids’ holiday goodies, consider the following:
Toys R Us: The nation’s largest toy retailer wants 20% down on any layaway item; 50% must be paid within 45 days, and everything has to be paid in full by December 16, 2012. In addition, you will have to fork over a $5 service fee for the store to reserve your toy.
Kmart: The discount retailer charges $5 to open a layaway plan, and makes you pay $10 if you cancel. You must pay $15 or 10% of the item’s price when you select your item, and then you have up to eight weeks to pay off the remaining balance.
Sears: The company’s layaway plan mirrors Kmart’s, but gives you up to 12 weeks to pay for items that cost more than $400.
Best Buy: If your kid is into high-priced electronics, you might consider Best Buy’s layaway plan. You have to put down 25% of the purchase price on your kids’ wish list item, plus there’s a 5% layaway service fee, which could add a chunk of change to your price if it costs hundreds of dollars. The retailer offers an eight-week and a 12-week layaway payment period.
While layaway plans are helpful to parents who want to spread payments out over two or three months, if you are not careful you may end up paying more than the item is worth once you factor in service fees.
Are you a layaway parent?
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