Welcome to Money As If, the personal finance newsletter for anyone who has ever clocked someone standing on business.

Today's paparazzi:

— Jeanine

I've been side-eyeing "Buy Now, Pay Later" services for a while now because, well, it feels like we've lost the plot.

What ostensibly started as an arguably noble endeavor — to provide an alternate form of short-term financing for people who can't get or don't want a credit card — has morphed into something arguably out of control.

In recent months, BNPL companies have announced partnerships with a laundry list of big-name brands that aren't exactly known for selling big-ticket and oft-financed items, like refrigerators or water heaters.

Perhaps the most attention-catching among them is Klarna's partnership with DoorDash, given that it means you can now finance your burrito cravings and the fees associated with using a food delivery app.

Now I've got a real libertarian streak when it comes to spending. My general inclination is: Your money, your decisions, your problems, so I'm not going to judge you or even tell you not to use BNPL for food delivery or other small, non-essential purchases — though, for the record, I don't think you should.

IMHO, your best spending decisions are made when funneled through two big questions:

BNPL, which most commonly involves paying back a purchase across four equal bi-weekly installments (i.e., pay-in-4), by definition, does not pass Question 2.

I also don't usually spend too much time thinking about the business ethics of a particular product because once you start doing that, you really can't stop, and, again, no one's force-delivering anyone a burrito they can't afford.

Still, a few things about the BNPL boom we're experiencing give me pause.

For starters, yes, there's the business ethics of the whole thing, because, other than encouraging overspending, what purpose does offering BNPL on everything, including small, non-essential purchases, serve?

The big logline is that they remain an alternative to high-interest credit cards. Per an official statement from Klarna:

I get that, but I think it's important to note that BNPL loans don't offer the same benefits as credit cards. You can't build credit or earn rewards on all BNPL purchases, for instance.

And the big BNPL pitch — no fees or interest unless you miss a payment — is true of credit cards, too, if you use them as recommended (don't revolve a balance, make timely payments, leverage 0% APR offers for large purchases).

So, at the end of the day, the return is just not the same. Nor are the regulations or the screening process, though most BNPL providers do at least a soft credit check, and Affirm, in particular, touts the sophistication of its underwriting model.

When applying for a credit card, "there's a higher hurdle," says Ann Skeet, senior director of leadership ethics at Markkula Center for Applied Ethics at Santa Clara University, so there's an argument to be made that, with BNPL, it's “more likely you can get vulnerable populations that don't have the means to pay what they're buying in the mix."

In fact, research from the Consumer Financial Protection Bureau found most BNPL loans went to consumers with subprime or lower credit scores, though the study precedes the industry's most recent offerings.

But ethics in business specifically ties to whether a product offering is misleading, says Skeet.

And that's a line in the sand that's much harder to draw because while you could argue that, as a new product, people don't fully understand what they're signing up for, you can't really put that lack of understanding on the BNPL provider.

"Overall, I don't think [the BNPL model for small purchases] is unethical necessarily," says Justine Rapp Farrell, a professor and chair of the marketing department at the University of San Diego's Knauss School of Business. “But I do think that certain industries should consider the long-term impact of the open availability of their services and limit consumer access to purchases over a certain amount to gently nudge the financial education in connection with buying behaviors."

To clarify, DoorDash says its BNPL service (which kicks in for orders of $35 or more) is not meant to finance restaurant delivery. Per its official statement:

Fair enough, but that doesn't mean people won't finance a few burritos or hamburgers. It also doesn't skirt the other separately bad aspect of the BNPL boom — namely, why is this service so in demand? Why does that demand extend to essential living expenses, like groceries? And what does that say about the average American's finances, especially since many people aren't repaying these loans as agreed?

Klarna made headlines earlier this year when it revealed in an earnings report that consumer credit losses were $136 million, 17% higher than in Q1 2024. A recent survey from LendingTree found that more than 4 in 10 people who've tapped BNPL have made a late payment on one of those loans.

Calling that out is not a critique of the service, the companies, or its users. It's a critique of the system and more fodder for my favorite central thesis: Sometimes our money problems aren't ours alone.

I discovered Labubus last week and, reader, I wanted one. How could I not? The latest retail craze uses every trick in the book to get even the most frugal spender to thirst after these ugly little monsters.

Look at all these tried-and-true spending triggers.

It was No. 3 that almost got me. As you may recall, I love a low-stakes gamble, and the thought of being 1 of every 144 customers who received this secret Wacky Mart Microwave Oven Labubu had me willing to fork over $19.99, plus shipping.

I didn't buy one, though. As you might have guessed, there were no Labubus to be bought over at Pop Mart — and the fear of getting scammed into buying a Lafufu was enough to keep me off the secondary market (where the prices run much higher).

I now have no plans to buy one, either. During my Labubu research, I stumbled on quite a few posts reminding me that most toys end up in landfills. Given that I already had ethical purchasing on my mind — and knew that I would never, ever wear or use this thing once I'd unboxed it — my love affair with Labubu ended pretty early.

I got a good refresher on how to curb impulse buying, though. First, sometimes, one good reason not to buy something is enough to counter a few so-so reasons to do so. Second, all spending decisions can benefit from at least one additional mandatory question.

When a show widely considered a critique of capitalism does … capitalism. (The final season of Squid Games hits Netflix on June 27.)

🍪 $9.99

for a two-piece tin of KGame Dalgona cookies, available through the Exotic Snack Guys; fingers crossed you don't get the umbrella.

🥃 $27.99

for a limited edition bottle of Squid Games X Johnnie Walker Black Label, player numbers are randomized, so fan favorites Gi-hun or Thanos are not guaranteed.

🏃🏻‍♀️ $89.95

for an official Netflix Play 456 tracksuit jacket, though you can find bootleg versions of the full set (jacket, pants, and tee) for much less.

🦑 $219

for two Saturday "Anytime VIP tickets" to The Squid Game Experience in New York City, a 60-minute immersive experience that lets you play five of the show's challenges, including Red Light, Green Light and the Glass Bridge.

✍️ $999.99

the asking price on eBay for a Player 456 Squid Game Funko Pop, signed by Squid Game star Lee Jung-Jae, certificate of authenticity included.

Nowadays, most financial takes are boilerplate. These aren't.

And, finally, today, in what are we even doing here anymore?

A large cake stand from luxury decor brand L'OBJET; costs $3,900, presumably because it’s art made from gold-plated alloy?

Yeah, I have no idea.

_{This article is for educational purposes only. We don’t recommend or advise individuals to buy, not buy, sell, or not sell particular investments or other assets, as everyone’s circumstances are different. Also, it’s your money and ultimately up to you to decide the best use for it.}