Advice
BY JOLINE GODFREY
I’m pretty careful about sharing ‘advice.’ Rarely is it applicable to everyone; and like beauty ‘good advice’ is often in the eyes of the beholder. But this piece, by Michael Grothaus, is a real exception.
A few months ago I was in a Gap store in NYC to pick up a few basics. I live in Maine much of the year now, so on those occasions when I get to an actual city, I make the trip count. The Gap is one of my favorite stops. It was early in the morning and slow in the store. Fortunately I was not in a big rush so, waiting in line behind one young guy (obviously Gen Z) I eavesdropped on the conversation/sales pitch the well trained clerk was having with her customer. She was ‘making it easy' for him to open a Gap account to get a 10% discount on his purchase.
As it happened, a stand on my right held copies of the Gap’s credit application. Half listening to their conversation I plucked up one of the credit brochures to read the terms in the fine print. 28% interest was the first number that caught my eye, with more information on how interest increased, based on missed payments, time, etc. As I listened to the pitch being made ahead of me, I realized nothing was said about anything other than the discount he’d get when the new account opened. The customer listened politely, agreed to everything, closed the deal, and left the store with his new clothes.
Next in line, I stepped up to pay for the shirt I had in hand; declined the same credit card offer, paid cash, and left the store. The young man was heading up E. 47th St. I couldn’t help myself, I hurried after him and got close enough to get his attention.
Accosting someone on the streets of NYC is not something you want to do often or lightly, so I quickly introduced myself, explained I was a financial educator, and that I couldn’t help overhear the conversation he’d just had in the Gap. He hesitated long enough to let me explain how much more the shirt he had just purchased would cost if he didn’t pay off the full balance as soon as his statement arrived. He listened carefully and thanked me profusely. Not wanting to overstay my welcome, I wished him well and turned back on my own path. Moments later he followed me and tapped me on the shoulder with a question about investing!
At this point, to make sure I didn’t get in the crosshairs of the SEC, I had to tell him I was an educator, not a financial advisor, but if he wanted to know how to get started, there were some things he could do. We spoke for a few more moments and he went on his way, presumably with a couple new actions on his financial to do list.
To be clear: I LIKE the Gap. I don’t begrudge them trying to make more money. I’d feel better if their employees shared in more of the money the company makes, but that’s a different conversation. My point is that, in addition to voting for representatives committed to sensible oversight and regulation of the credit markets, we each need to practice economic self-defense. That means learning about credit, reading the small print, and becoming more mindful about how and we manage money. Grothaus’ Fast Company piece offers good advice. And not just for Gen Zers.