| As you know, I love history, but I appreciate many people don’t. |
| I am one of those people, so not sure where you are going with this. |
| Exactly. So, when you first wanted to talk to me about the history of credit cards, I should have known something was up. |
| Or, at least been curious. |
| How was I supposed to know it would make a difference in my life? |
| Why else would I want to give you a “history lesson”? |
red head
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Black
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| I don’t know. But in my defense, my husband had just gotten fired, and I was freaking out about a million things, so wasn’t in the mood for a history lesson. And when it came to dealing with our credit cards, I just wanted to be told what to do. |
| I found it ironic since you always tell me understanding history is critical to understanding how we got to where we are today. |
| That’s in the context of world events, not my personal life. |
| The logic holds in both scenarios. That is why I insisted you learn about the history of credit cards. I knew it would help you. |
| Help? It ultimately made all the difference. Not only to me but also to the students we taught at KIPP Houston High School and the hundreds who attended our many student presentations. Not to mention countless adults because most of our speaking engagements include a segment on credit cards. |
| It all started in the 1920s with gas charge cards, which were marketed to traveling salesmen as a convenience so they would not have to carry cash. They were “charge” cards in that you charged your purchase and then paid in full at the end of the month. |
| When you first explained it, I didn’t think much about it until you asked me where, if I had a Shell card, I would most likely buy gas. |
| It was a very clever business angle. Gas cards soon led to general-purpose charge cards, like Diners Club and American Express, with the companies making money off the businesses accepting them. |
| Growing up, I remember Daddy having a Diner’s Club card. I found it interesting you could use a little plastic card to pay for a meal instead of money. It was like magic. |
| Then, in the late 1950s, Bank of America … note the word “bank” … issued the first “credit” card – meaning they were extending credit to the cardholder. And, charging interest if they carried a balance. |
| The first time you told me this, I thought it might come in handy if I found myself on a game show, but wondered what it had to do with my credit card debt. |
| In a word … everything. Although credit cards were marketed as a convenience to replace carrying cash or having to write a check, issuers knew they were so easy to use that many people would carry balances. And, they would make money off those people. Lots of money. |
| Easy is an understatement. But it certainly explained our mountain of credit card debt. |
| Would you have looked at them differently if they had been marketed as consumer debt or financial aid? |
| That sounds more like warning labels than something to make your life easier. |
| Exactly. Marketing at its best. Not only convenience, but they were selling “priceless” experiences. Except they carried a huge price tag if you did not have the money to pay the bill in full when it arrived. |
| When we taught at KIPP, that message didn’t sink in how I wanted it to. So, I told them to imagine getting dressed up, walking into a bank, and asking to speak to the loan officer. When asked the reason they wanted a loan, they’d respond with, “I saw a great pair of shoes at the mall and want to buy them” or maybe, “I want to go out with my friends to see the latest action blockbuster movie and then go to dinner.” |
| Yes, and they all started laughing. Until you told them that when they were old enough to have a credit card if they knew they did not have the money to pay the bill when it arrived, it would be no different than a bank loan, except the interest rate would be higher. |
| I even started calling credit cards “loan cards”, which definitely made an impact on them. When we tell that story at speaking engagements, I know it hits home for lots of men and women, even if they don’t want to admit it. |
| I bet many of them can relate to your initial reaction when I suggested you use credit cards as charge cards were first intended … “You mean pay off what you spend each month? Do people do that?” |
| For most of us “mere mortals,” it’s an interesting concept. And, although it may not always be realistic, it’s a new way of looking at credit cards. |
| Actually, it is a very old way. The original way. |
Red
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April is Financial Literacy Month, so what better time to remember the history – and true purpose – of credit cards? Not as a line of credit or endless funds to buy things, simply as a convenience tool, nothing more.
Until two years ago, Red had never heard of “Dry January” (see our conversation below). But whether or not you’ve taken the challenge, it’s never too late to develop healthy habits. And, FYI, there’s also “Damp January.”
|
I keep
getting emails about where to go for
mocktails. I know alcohol-free cocktails, like Virgin
Margaritas, have been around for a while, but I’d never heard that term before. Do you think it has to do with
New Year’s resolutions? |
| It can if any of your resolutions are to lose weight, save money, sleep better. Or, drink less. Psychologically, January is the month when we “reset”, so a UK-based organization, Alcohol Change UK , started Dry January , where you abstain from drinking alcohol. |
| Perfect timing since many people shop, eat, and drink more than usual over the holidays. |
| I know you used to drink a glass of Cold Duck on New Year’s Eve, a tradition going back to our childhood, but that hardly counts as drinking. But, I have always wondered why you rarely drink, but never asked. |
| That may be the only thing you haven’t asked me. It isn’t for any moral or health reasons; it’s because, even many decades later, I still have vivid memories of overdoing it at a fraternity dance at college. Although lately, I’ve been drinking more than normal. |
| For you, that means more than one drink … a year. |
| Very funny, but pretty much true. However, after visiting Tennessee Hills Distillery in the fall, I did develop a taste for their flavored rum. So, between the ones I brought home and the bottles of Moscato that Natasha had delivered to me by Drizly as a surprise holiday gift, I’ve had more to drink this holiday season than ever before. |
| Well, I drank more this year, too. But, that is because, during COVID, I went over a year without a drink. For years, I used to go out to dinner several times a week and would always have a drink or two, but now do not go out as often. Combine that with a lack of dating, and my alcohol consumption is almost non-existent. |
| But your condo has a pantry that you converted into a beautiful bar with all those liquor bottles on display. And you’ve collected wine for years. |
| Yes, it looks enticing, but I do not drink alone. Never have. But, if I did, I would probably need to hide the liquor, or put yellow “caution tape” in front of the bar during Dry January. |
| That’s funny, but do you really think that people can go cold turkey for an entire month? That seems like a long time if you’re used to drinking on a regular basis. |
|
Yes. Besides
the fact many
bars
are taking advantage
of Dry January to offer customers something
new and different
versus just alcohol-free versions of traditional
cocktails, the demand for nonalcoholic beverages continues to increase as more people
prioritize healthier lifestyles. Not to
mention, many people now feel less social pressure to drink.
|
| Please don’t start quoting statistics and studies! But don’t you think, come February, everyone will just go back to their “normal” habits? |
| Since you do not want me to mention any of the science, or the fact people are already drinking less , I will come at it another way. If once you start Dry January, you experience the health benefits, including more energy, why would you go back to your old habits? |
| Because it’s a habit? Sorry, I couldn’t resist. But good points, especially as we all know drinking can lead to health problems . Not to mention the risks of driving under the influence of alcohol. But I’d think there’s still some peer pressure to drink socially. |
| As more people are trying Dry January, or at least are aware of it, the more acceptable it becomes. And, the easier it is to find others to support you. Although sometimes you may need to avoid those people who do not. |
| Well, I’ve seen you drink this month. And you can’t blame it on me! What’s your excuse? |
| Dry January is not about having a perfect score. It is about reevaluating your relationship with alcohol. And, taking a night off does not mean the end of the effort. It just means it may be a Damp January. |
| It’s January, and everyone’s probably tired of reading about New Year’s resolutions. |
| Not me. Since I never make them, I never feel the need to read about them. |
| Of course, you don’t. So, what should we write about? |
| How about that we celebrate some of our favorite things in January? |
So many “National Days” in January are fun (we’ve written about them over the years) and remind us of some of our favorite things. (Can you pick which are Red’s favorite holidays and which are Black’s?) And whether or not you make resolutions, it’s always important to have a sense of humor and enjoy the simpler things in life …
- NATIONAL CLEAN YOUR DESK DAY: Resolutions Aside … A Clean Desk? Is That Even Possible???
- NATIONAL BAGEL DAY: Not A Trick Question ... Who Doesn’t Love Bagels?
- NATIONAL POPCORN DAY: Do People Really “Celebrate” Popcorn? Red Does!
- NATIONAL HUGGING DAY: Think Before … Hugging?!
- NATIONAL BACKWARD DAY: Celebrating Having Fun … And Success … By Being Backward?
Answer: Red’s favorites are Bagels, Popcorn, and Hugging. Black’s are Clean Desk, Bagels, and Backward.