layaway

Definition

A retail purchasing arrangement where a customer reserves an item by making partial payments over time until it is fully paid, at which point they receive the merchandise. Common in department stores and discount retailers before the rise of credit cards.

Example Usage

My mother put a winter coat on layaway in September and picked it up in October once she'd finished paying.

Origin

Emerged in the early 20th century as a way for middle- and working-class consumers to afford larger purchases without credit.

Fun Fact

Layaway experienced a resurgence after the 2008 financial crisis and again during the COVID-19 pandemic as consumers sought payment flexibility.

Source: Definition backfill (hailey)

Related Terms

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stock

Either the stuff sitting in your warehouse gathering dust, or pieces of ownership in a company that give people something to obsess over on their phones all day. In retail, it's inventory; in finance, it's equity shares that fluctuate based on corporate news, earnings reports, and sometimes just vibes. Both versions represent value that can disappear faster than you'd like.

💰 Finance / Accounting

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pay

The monetary compensation you receive for trading your time, talent, and sanity—or the act of transferring money to settle debts and obligations. It's the transactional core of capitalism.

💰 Finance / Accounting

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Accrual Basis

The accounting method where you recognize revenue when earned and expenses when incurred, regardless of when cash actually changes hands. It's like claiming you're rich because people owe you money, even if you're currently broke.

💰 Finance / Accounting

Advanced

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, or as cynics call it, earnings before all the stuff that actually matters. It's the financial equivalent of saying you ran a marathon if you don't count the parts where you walked, stopped, and took an Uber.

💰 Finance / Accounting

Beginner