Each week, we are sharing a financial wellness tip to help you make the connection between financial management decisions, your overall wellness, and student success. Money touches every aspect of our lives, and a lack of financial literacy can cause unnecessary stress and negatively impact our mental and physical health.
A Financial Scam to Avoid: Rent-to-Own
There are certain companies in the world that will advertise rent-to-own items – such as furniture, electronics, and other household items as “Get it TODAY and Pay $19.99 for 52 months.” However, these tend to be predatory-type advertisements and offers. Aside from the taxes, fees, and other items that are often included in these types of transactions, the total cost of these items after 52 payments will often end up costing significantly more money than buying it outright.
These types of companies and ad campaigns often target those with low or non-existent credit because the instant gratification of obtaining an item with the slow payment over time is attractive. However, it can end up being costly.
The alternative to these types of predatory practices is a three-step process: 1) create a budget; 2) set your financial goals; and 3) plan for your large purchases. Planning and responsible consumption of consumer goods are strategic blueprint for financial wellness. Be cautious and inquisitive, protect yourself, and if it sounds too good to be true – it probably is!
Keep an eye out for the Money Mondays series starting on January 24, 2022 and check out the Financial Literacy website. Follow the Financial Literacy Team on Facebook and Instagram.
