| 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”? |
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| 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. |
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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.
Is it a way to meet people, share memories, or help the environment? Or is it about bargain hunting? As we've talked about before, garage sales can be about so much more than just getting rid of things you no longer want …
| Thanks for the accounting of your garage sale. But, given how many hours you spent preparing for it, and then the actual sale itself, did you calculate how much you “earned” on a $/hour basis? |
| No, all I know is that it seemed to take forever to go through everything in Mom’s house and decide what to keep, what to sell, what to donate. And what to trash. As far as the garage sale, I’ll give you your half the next time I see you. |
| Keep my half. You did all the work. I did not even offer to help. |
| And that was a big help. Thank you. |
| Obviously, you must be exhausted because you are making no sense. |
| Sorry, but I have a specific way of running garage sales, and the last thing I needed was another “cook in the kitchen” . |
| Not a good analogy as “cook” is a four-letter word that I do not use. |
| Cute. But seriously, I knew if I had asked you to help, you would’ve. But I can only imagine how you’d have reacted when you first saw all the stuff for sale. Especially as I treat garage sales as a way to get rid of items that I know have very little value. I’m not trying to maximize the money I make; I’m just trying to make the stuff “go away”. In fact, I don’t even put prices on them. |
| That all makes sense. Except for not having everything pre-priced. That would drive me crazy. How do you know what to charge people? |
| It’s an experience thing and another reason why I didn’t ask you to help. I have a sense of prices, but not something I could quantify in advance. When someone arrives, I tell them that everything’s cheap and give them an example. They usually look at me like, “Wow, she means it.” And then I tell them to collect what they want and that I promise to give them a good price. And I do. |
| Is that why you and Mom never had joint garage sales? I cannot imagine she would let you determine prices on the spot. |
| Actually, she’s the one who “taught” me not to price things. That if someone picks up something or you see them looking at it, they’re interested. And that’s all you need to know. Where we differed was in how much to charge. To her, it was fun, but also a way to make money. To me, a garage sale isn’t my retirement account. It’s my way to get rid of stuff, especially big, bulky stuff. |
| In other words, people are paying you to haul off your trash. Or, save you trips taking stuff to your local thrift stores. |
| Exactly. Although I still take a lot of items to thrift stores that would probably sell for a decent price at a garage sale because I believe in what they’re doing, and I know that my donations make a difference. But I forgot how fun a garage sale can be, meeting people and laughing, just making connections, and knowing that someone will now enjoy and/or use your things. Or, in this case, Mom’s things. |
| Is there a particular age group that came to your garage sale? |
| It was truly a mix of people. Not counting the kids tagging along with their parents, which reminded me of when the girls would set up a lemonade stand to benefit Make-A-Wish at my garage sales years ago, they ranged from 20-somethings to senior citizens. But I’m almost afraid to ask why you asked. |
| I will not get into studies and statistics, but younger people are really into the environment and reusing older things, especially clothing (which is one of the three “new” R’s – reduce – reuse – recycle ). So, garage sales, along with thrift stores, are becoming more popular than ever. |
| I love it! And the idea of so many of Mom’s things, now that she’s passed, will get to live on and be enjoyed by others. |
| At the risk of sounding like a MasterCard commercial , there are some things that money cannot buy. Like sentimental value and fond memories. |
| I know. Which is why the process of sorting everything was so time-consuming. Interestingly, when that came up in conversation during the garage sale, so many people could relate and then shared their own stories. It was as if they wanted me to know that Mom’s things were getting a good home. |
| Well, if you add that to the cash you made, it sounds like a very successful garage sale. Hopefully, the next sale, being an estate sale with larger and higher-priced items, will be as successful. And, although I tried to get you to use a professional “estate sale” company that would do everything for you, I am beginning to understand why you decided to do it yourself. |
| The hardest part was culling and organizing, and there was no way I’d let strangers go through all of Mom’s things. And the internet makes “advertising” the sale and posting items online very easy. All-in-all, there’s no reason we can’t do it ourselves. |
| We?! |
| Yes, because your ability to combine photos into a single image and correct my grammar is important. But your spreadsheets will be critical. |
| Now, that I can do. |
Remember summer reruns on TV? Well, this month’s column is a first … it’s a “rerun” of our July 2020 column, except we added the word “CRITICAL” in the title. Because, four years later, we feel it’s very sad (and scary) that our sentiments about our country’s leaders having the strength, courage, and conviction to be independent thinkers are still relevant (maybe even more than before). So, the Fourth of July may be behind us, but Election Day will be here before you know it.
| I keep forgetting to ask you, since Sawyer is away at camp, what did you do for July 4th? |
|
Well, it was
a very different Fourth of July. No
kids. No barbeque. No fireworks.
|
| I know most of the fireworks were cancelled, but is your barbeque grill broken? |
| No, this year I decided to declare my "independence" from doing a big holiday grocery shop, major prep work, and cooking outdoors in Texas heat. |
| I wish there were more people willing to declare their independence. |
| Somehow I don't think you're talking about me making an easy pasta dish in the comfort of my air-conditioned house vs. standing over a hot barbeque on a hot day. |
| No, but the quote, "If you can't stand the heat, get out of the kitchen" does apply to a bunch of elected government "leaders" – and I use that terms loosely as they actually seem to be "followers." You cannot tell me they do not see how their actions – or inactions – are hurting their constituents. |
| Although I agree with you, I can see where some elected officials feel the need to maintain the party line. Like you've always told me, you have to pick your battles. |
| Yes, but we are talking about people's lives. You are the history buff, so you well know there was a time when people would give their lives to do what they felt was right – for their families, for their community, for their country. Even if that meant standing up to those in control. |
| Yes, but I think you're being a bit dramatic. Which is interesting as I was the theater major, not you. After all, equating sacrificing your life to taking a stand about your beliefs is different from leaders who aren't willing to "speak up" to "higher-ups". |
| Really? One is risking their life – the other, maybe, their career. True leadership is about doing what is right. And, if you feel that something that is wrong, take an independent stand. It is about having the strength, courage, and conviction to do what you believe is right. |
| Sounds like you watched "The Patriot" over the holiday weekend. |
| Never heard of it, but you are the movie-goer, not me. Although we both know your primary motivation is the popcorn. |
| True. Anyway, it starred Mel Gibson as an American colonist, and although an "action movie" showing our fight to win independence from Britain, it still explores those exact themes. America may not be a perfect country, but it has always stood up and been willing to fight for what it believes in. |
| Yes, but that is harder to do when leaders are not leading, but rather just following. Being a true leader requires independent thinking. | |
| That reminds me of something someone told me decades ago about a colleague they worked with, "He would be a great leader, if only people would follow him." It definitely made me laugh. |
| Sometimes you do not realize the wisdom of a true leader until much later. Initially, they may be measured by doing what is popular or convenient. |
| I love history, and there are countless examples of just that, but I'm not sure how you begin to crack that nut. Today, thinking, yet alone independent thinking, isn't what a lot of people do well. |
| OK, Miss History. After we got our independence from England, how were we ruled? Who made all the decisions? |
| Is this a trick question? |
| No, I do not know the answer, and I am trying to understand what happened and why. |
| First, my disclaimer that I know more about Tudor history than American history, but to keep it short and simple, the 13 states had to find a way to work together, and the original structure (if you're ever on Jeopardy remember "The Articles of Confederation") gave the states a lot of power. However, that didn't work out so well, and after just a few years, there was the brilliant idea to create The Constitution, which establishes and defines the separation of powers. |
| So, it required a lot of creative thinking, with an end goal of what was best for "We the people". In other words, when our country was born – it was led by independent thinkers not people that merely followed along. |
| Yes, but that's history. Good luck turning back that clock! It would require those "up the ranks" to relinquish some of their power. And need I remind you that we had to fight the War of Independence to achieve that? |
| That history fact, I do know. However, I think we have recently witnessed the importance – and power – of independent thinking. And, combined with good leadership, it can result in great things. |
| Absolutely! And to say there's such an overwhelming need for that at this critical time would be a huge understatement. Maybe it's time for another revolution, although this time make it peaceful. |
| The War of Independent Thinking. Now that would warrant fireworks. |
How you celebrate July 4th may change from year to year (Red will still enjoy a quiet holiday, but this year will be reading as it may take all summer to get through “War and Peace”), but what should never change is remembering WHY (one of Black’s favorite words) we celebrate as well as the sacrifices made to live in a free country …
| This is going to be a very unusual July 4 th for me, with neither girl being home. Natasha always hated the fireworks, but Sawyer would insist we do all the traditional things – barbequing, lots of watermelon, and then watching the fireworks in the Texas heat and humidity. So, this year, I plan to make it a really “cool” holiday … staying in the air-conditioned house, watching a movie or one of my TV series, and celebrating my day of independence from any “mom” responsibilities with a big bucket of freshly popped popcorn! |
| Well, everyone celebrates differently. But, when I think of Independence Day, I think about the challenges our Founding Fathers faced when they drafted the Declaration of Independence , especially as they did not always agree on issues. Challenges our nation continues to face (it is a holiday, so I will not get into the increasingly divisive aspects of politics). And, I cannot help but wonder how many people realize the extent of the sacrifices made by those who signed it in exchange for our country’s freedom. Which is why, as we celebrate July 4th, we need to remember, |
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.