Activity 1 – Comparing Buy-now, Pay-later Options

Let's look at a case study to learn about how one buy-now, pay-later resource works.

Maria needs money for groceries. Her cupboards are bare. She spent all of her food stamps earlier in the month. It is Monday and she won't be paid until Thursday.

Maria decides to take her $200 watch to the pawn shop. The pawn shop is willing to give her $50 for the watch and tells her it will cost $70 to buy it back in the next 30 days.

Maria takes the $50 for the watch and buys groceries. If Maria wants to buy her watch back, she will need to come up with $70 in the next month.

Will Maria find the $70 to buy back her watch?