| 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
assets.rebelmouse.io
Black
assets.rebelmouse.io
| 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
assets.rebelmouse.io
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.
What does Thanksgiving have to do with shoes?! Or, the fact some of Red’s most memorable Thanksgiving celebrations happened when she lived overseas and introduced the holiday to friends, none of whom were American. But this column from 2022 is bittersweet for Black, as shortly after it ran, her good friend John passed away … yet the memories of Thanksgivings spent together – and of dear friends – live on. (But that still doesn’t explain the shoes …)
| At the risk of asking you a warm and fuzzy question, have you thought about what you’re most thankful for this Thanksgiving? |
| Yes. |
| I should’ve guessed that you’d take the question literally. Could you expand on that a little, or at least give me a hint? |
| Friends. |
| I should’ve guessed that too since John’s been in the hospital for the past several weeks and is one of your oldest friends. |
| Not sure “oldest” is the kindest way to define it, but he and his wife have been my closest friends for over 35 years. To the point that John calls me his “second wife,” although he’s only been legally married once. |
| That’s funny, but on my recent fall foliage trip, I realized it was so much more than chasing leaves as I experienced the joy and appreciation of visiting a dear friend and her family. And while phone calls, texting, and even FaceTime are great, it’s just not the same as spending time together. |
| I was going to mention that when you first told me you were going to see Sawyer in Nashville and also spend some time at Amy’s in east Tennessee, but figured you already knew that friendships can easily be taken for granted … until something makes you fully appreciate them. |
| That’s so true. Although I prefer to have a small group of friends, and most of mine I’ve known for decades – either from elementary school, college, or my years living in Hong Kong. Unfortunately, though, none of them now live near me. |
| Friends do not require living in the same town, although that is usually how friendships begin. And, while we may not stay in touch as frequently as we want, over time, we see who our true friends are … they are the ones who are always there for us, during good times and bad. And, in my case, are brave enough to point out when they do not agree with me. |
| Very brave. My friends have it easier, but I count on them to give me an honest perspective no matter what, although I prefer when they agree with me. |
| Of course, you do. And, your friends should be thankful you are so easygoing. |
| Well, at the risk of sounding corny, with Thanksgiving just days away, it’s the perfect time to be truly thankful for our dear friends. |
| It reminds me of the photo that Natasha sent us last year when she was celebrating “ Friendsgiving” with her friends in England. |
| Besides not realizing it was an actual thing and not Natasha combining the words “friends” and “Thanksgiving,” I was expecting photos of her attempt at making sweet potatoes or other traditional Thanksgiving foods , or maybe a bunch of Brits sitting around the table with the lone American. Not a photo of everyone’s shoes in the entry hallway. |
| I never thought of Thanksgiving as being “all about the shoes”, but that image sums up the true meaning of the holiday. |
| Tell the truth; everything’s always all about the shoes for you. But, given this Thanksgiving will be the first without Mom, the image’s a wonderful reminder of the importance of friends who’ve been there for me this year. And I include you as both family and friend. |
| Once is enough for me. And, as the saying goes, you cannot choose your family but (like shoes) you can choose your friends. So, pick carefully, and then appreciate them. |
Take a moment and imagine not being able to read this sentence. Now, think about this … if you’re reading this, you’re doing something millions of Americans can’t.
|
I’ll admit that I never realized how many people can’t read.
It’s something I’ve always taken for
granted. That’s until Black and I met
someone doing something about it – Jackie Aguilera, now the Project Manager for
the Mayor’s Office of Adult
Literacy (Houston). Her focus
wasn’t only on reading literacy but on “literacies” I’d never heard of, such as
financial literacy, health literacy, and digital literacy. But it all starts
with the ability to read. |
|
It
is called functional
literacy. Obviously, if you
are reading this article, you are on the internet. Which has more information than anyone can
possibly absorb (and is why news literacy is so critical). Now,
imagine if you could not read. All that
information … just sitting there.
Available to others, but not to you. |
|
Books are my great escape. Always have been. So, I can’t
imagine a life without them. |
|
A great escape … in many ways. You may use it to escape from the stresses of
daily life or just as entertainment. But,
books and, more specifically, the ability to read is how people can escape a
life of poverty and limited opportunities.
|
| Working with Jackie made me see that. As did our work with the criminal justice system, as so many incarcerated people struggle to read. And I know you’re a data geek, but please don’t start quoting me statistics. |
| OK, no statistics, but did you know that more people in the US are affected by low literacy (meaning they cannot read at a sixth-grade level) than are diagnosed with cancer or heart disease? |
Over the years, as we’ve learned how many people can’t read (including one in three Houstonians), it’s made us stop and think about how that impacts every aspect of their lives … their families … their communities. And also … our communities and our country.
As former First Lady Barbara Bush said many years ago,
If you help a person to read, then their opportunities in life will be endless.