It was a concept designed for the low- to middle-class in a very different era than what we have now. Especially in rural areas, banks were not often used by those who probably needed them the most, for a variety of reasons. Lots of workers were either paid in cash, or cashed their paycheck weekly at the local grocery/department/liquor store.

Even today, lots of people have the issue where if they _have_ money, they are compelled to spend it on frivolous things like entertainment and alcohol. Layaway was an easy and convenient tool that people could use to make sure they were putting at least some of their money toward things they really wanted.

For me, the point of layaway is that I want something enough to commit to paying for it in advance a little at a time. A savings accounts is fungible; it isn't necessarily dedicated to anything and subject to me raiding it if I need to cover an unexpected expense.

Incidentally, where do you live that the interest on a mere savings account is worthwhile on a timescale of years rather than decades or centuries? Or am I taking "savings account" too literally when you mean things like certificates of deposit or money-market accounts?

> For me, the point of layaway is that I want something enough to commit to paying for it in advance a little at a time. A savings accounts is fungible; it isn't necessarily dedicated to anything and subject to me raiding it if I need to cover an unexpected expense.

You are making dhosek’s argument for them.

How so? By acknowledging the general utility of savings accounts while explaining why in some cases they aren't fit for purpose?

For what purpose are they not fit? They can do the same thing paying for layaway would, plus you get the protection of being able to use it for unexpected expenses.

If you didn't grow up working-poor and unbanked in the twentieth century you probably wouldn't understand.

> Why not just put it into my own savings account and at least get interest on it?

Because if it's immediately available in a savings account, the vast majority of people are much more likely to spend it on something else. The appeal of layaway is the willpower enforcement - worth the price of whatever pocket change you're likely to get in savings-account interest.

I grew up lower middle class in the 80s. We got layaway to lock in a sale price and make sure the product is still available.

I always thought layaway was just used to lock in a sale price, so essentially, a customer is betting that the payment now plus the foregone interest/investment return in the payment will be less than the future sale price.

Because the item could be sold to someone else in the meantime.