Buy Now Pay Later? Try Save Now, Spend Later Instead

Author: MyPocketSkill

Buy Now Pay Later (BNPL) services are everywhere now. You’ve probably seen them when shopping online - Klarna, Clearpay and PayPal Pay in 3 for example. They let you buy something now and pay for it later, often in small payments with no interest. It sounds easy, but there’s a catch. For many young people, it can lead to debt and money problems.

We believe there’s a better way. Instead of spending first, why not save money and spend later? It’s safer, smarter, and helps build good money habits. In this blog, we’ll talk about why Buy Now Pay Later isn’t always the best choice and how young people can take control of their finances with better tools and financial education.

What Is Buy Now Pay Later?

Buy Now Pay Later (BNPL) means you can get something now and pay for it later:-

• BNPL services allow consumers to defer payments for purchases, typically paying in installments over a set period (e.g. 3 months). 
• Some BNPL providers offer interest-free installments, while others may charge fees for late payments or missed installments. 
• BNPL is essentially a form of credit, so you should ensure you can make repayments on time to avoid fees and potential damage to your credit score. 
• BNPL services often partner with retailers to offer their services at the checkout.
• You may recognise names such as Klarna, Clearpay and PayPal Pay in 3 who all offer BNPL services.

Lots of people, especially students and young adults, like using it because it feels easy and quick. The Financial Conduct Authority found that 14 million people have used BNPL at least once (in the six months prior to January 2023).  In 2024, 16% of Generation Zs used BNPL for the first time, highlighting its growing appeal within this age group according to ​Your Money.

But many don’t realise that they are still borrowing money. It’s a type of credit, and if you miss a payment, you can be charged late fees. This can make it hard to save money and can hurt your credit score later on.

The Risks of Buy Now Pay Later for Gen Z

For young people and students who are just learning how to manage their finances, Buy Now Pay Later can seem like free money. But it’s not. If you’re not careful, it can lead to big problems:

• You might spend more than you have.
• You could end up with debt that’s hard to pay off.
• It can be confusing to keep track of all your payments.
• The fine print can be confusing.

Without strong financial education, it’s easy to make mistakes. That’s why it’s important to learn good money habits early.

What’s Changing in the UK?

The UK government is planning to add more rules for Buy Now Pay Later companies. That’s because lots of people are getting into debt without knowing the risks. Research commissioned by the Centre for Financial Capability, a UK-based financial education charity, and published in The Financial Times, found that almost a quarter of people with BNPL loans were charged late repayment fees in the six months to December 2023.

Following a consultation in October 2024, new regulation is expected in 2026 to make it clearer what you’re signing up for, to ensure you are able to afford repayments before offering a loan and help protect you from bad deals.

But even with new rules, the best thing you can do is stay informed. Learn how to save money, make a budget, and avoid risky debt before it starts.

Save Money Before You Spend

Instead of using Buy Now Pay Later, why not try “Save Now, Spend Later”? It’s a simple idea: you set a goal, save money, and buy what you want when you can afford it. No stress, no debt, and no scary bills later on.

Here’s how to start:

1. Choose something you want to buy - like trainers, gig tickets or a holiday
2. Work out how much it costs.
3. Set a saving goal and break it into smaller steps.
4. Save a bit each week until you reach your goal.

This way, you build strong money habits and feel proud of what you’ve achieved. Plus, it’s much easier to manage your finances this way.

How Financial Education Helps

Good financial education is the key to smarter spending. Sadly, many young people don’t learn enough about money in school. In fact, only 38% of students say the curriculum in school or college left them " ready for life and ready for work" according to the Higher Education Policy Institute.  That’s where MyPocketSkill comes in. Our 'Earn, Save, Learn' approach helps young people earn money, set savings goals, and learn how to about money with real-world experiences.

We give young people the tools to take charge of their finances and make better choices. A real grasp of how money works will really help you understand the pros and cons of offers like Buy Now Pay Later so you can make the best decisions for you.

Final Thoughts: Make Smart Money Choices

Buy Now Pay Later might look good, but it’s not always the best option. For young people learning about money, saving first is often smarter than spending now.

By choosing to save money, build strong money habits, and learn more through financial education, you can feel more confident with your finances. You’ll also be setting yourself up for success later in life.

So next time you see Buy Now Pay Later at checkout—stop and think. Could you wait, save, spend later and feel even better when you finally buy it? We think you can!

P.S have you seen our latest video on BNPL over on Insta?  See what Melisa, one of our brand ambassadors has to say about using BNPL in support of Debt Awareness Week!