Buying on layaway, that thrifty practice your parents and grandparents knew so well, still has a pulse in the marketplace. And as the holiday shopping season draws near, shoppers of all income levels are considering the option.

Some retailers may be more sanguine about credit than others and want to steer their customers into their exclusive credit arrangements. But there is an opportunity for shoppers to make smart buys through layaway.

What You Should Know About Layaway

• Layaway is good for buying something you’ll need in the future—say five weeks from now—if you cannot pay for it up-front or do not want to use credit. A layaway plan allows you to make affordable regular payments to pay for goods.
• For shoppers without savings or credit, layaway can be their best option. But before you proceed, first find out how much you’ll need for a down payment, the payment schedule to fulfill the layaway obligation, and how much each payment will be. If you buy $200 worth of presents for your children, make sure you can commit to paying off $40 each week.
• Make a shopping list before you go to the store and be realistic in what you can afford to pay in full during the allotted time you have.
• Make sure you understand the service fees and the store’s layaway cancellation and refund policies.
• When going to the store to make payments, go in and get out. Don’t browse and shop for more items. Impulse items can wreck your budget.

• Keep accurate and detailed records of your layaway contract, your purchases, and all payments that you make. Also, be diligent in watching sale ads. If you put something on layaway that subsequently goes on sale, you could arrange to get it at that sale price.

The benefit of layaway is that it helps you afford any given purchase. But the real value is in building techniques to apply to your finances beyond the holiday season.