The Money Guy Show: Buy Now, Pay Later Schemes Are Never Worth It

Many Americans want to have it all, even if they don’t have the funds to pay for it. Enter buy now, pay later (BNPL) programs.

Risk-free instant gratification? Well not really, says Brian Preston of The Money Guy Show. “85% of users are actually … spending more than if they had just paid cash for this or some other structure,” he said on a recent episode. Preston and co-host Bo Hanson, both CFPs at Abound Wealth Management, examined what the marketing pitch (interest-free installments, painless checkout) hides about actual behavior. BNPL is being marketed as a budgeting tool. The hosts argue it isn’t wise for most people.

Preston cites Northwestern Mutual data showing 33% of U.S. adults used BNPL for large purchases in 2025, while 23% now use it for daily purchases like groceries and gas. As Preston puts it, “If you are literally turning your tank of gas into four payments or installments, you’re deferring the payment on just day-to-day consumption items. It’s your lifestyle.” Hanson said the behavior makes him “really, really, really nervous.”

While these services claim to be interest-free, the innovation isn’t designed to help you build wealth. Hanson suggested consumers reframe their focus from “what can I buy today on borrowed time” to “what can I save for the future.” His view: “Instead of me spending $1 today, I’d rather have the opportunity to spend $88 in the future. The secret to wealth building is you have to live on less than you make.”

If gas requires installments, you are smoothing a shortfall in your budget. For a household carrying credit card balances and saving below 5%, using BNPL on groceries is a flashing budget warning, not a budget tool. If you’re using Buy Now Pay Later, it could be a sign that you’re living beyond your means.

Why BNPL behaves worse than a credit card

Credit cards show a single growing balance. BNPL fragments obligations across providers, due dates, and apps, which is why 85% of users spend more than they would with cash. Hanson is blunt about the incentive structure: “Most of these things are not built with your best interest in mind. Most of these things are built with a profit motive and an interest in mind that if you make a poor decision, it works out better for the company.”

Preston’s broader observation: “All the innovation that’s going on in banking and consumption seems to be making it easier for you to waste money on stuff. Not necessarily on saving or building wealth.” Even legacy credit issuers are following the playbook, pitching installment splits on existing card balances.

The warning is sharpest for Gen Z and millennials. 49% of that group plans to use BNPL in 2026, and they are the cohort with the most compounding runway to lose. Preston calls them “literally a billionaire of time.” But only if they start saving now.

Tips for Spending and Saving

1. Audit your last 90 days. List every BNPL plan you’re using. If any are tied to gas, groceries, or restaurants, stop using them immediately.
2. Build a sinking fund. Open a high-yield savings account that supports buckets and route a fixed monthly amount toward known upcoming purchases (tires, holidays, vet bills).
3. Run the Financial Order of Operations check. Ask Hanson’s question: “Where am I in the financial order of operations?” High-interest debt cleared, emergency reserve funded, HSA and Roth IRA contributions made? You shouldn’t even consider a BNPL plan before achieving these goals.