Living the "Unbanked Life": Jaime, Renting to Own

8 Pages Posted: 4 Sep 2019

See all articles by Kenneth M. Eades

Kenneth M. Eades

University of Virginia - Darden School of Business

Safiya Sinclair

Independent

Gregory B. Fairchild

University of Virginia - Darden School of Business

Abstract

This case follows a man named Jaime as he considers options for obtaining furniture for the new apartment he and his brother, Angelo, have leased. Jaime would like a new couch, a coffee table, and a TV to improve their living room, but his $2,000-a-month income at an auto shop and lack of savings means he will have to make some difficult choices. Angelo suggests that Jaime construct a budget and only acquire one piece of furniture at a time. Because he has no bank account, credit card, or credit score (to his knowledge), Jaime believes he will not qualify for some of the furniture deals advertised in the bigger department stores. As a result, Jaime explores rent-to-own financing, which does not require a credit check.

Excerpt

UVA-F-1900

Aug. 26, 2019

Living the “Unbanked Life”: Jaime, Renting to Own

Introduction

Jaime and Angelo paused to look around at their new apartment, still filled with boxes that they needed to unpack. The brothers had just signed their new lease two days ago, and as they spent a moment taking it all in, they smiled and hugged, proud to finally have the keys to their first apartment. The brothers had decided that living together would be economical and easy, since for almost a decade they had bunked together in the same room as kids. Sure, there had been fights here and there, but as they grew older, there had been no one else they trusted more than each other. Now that they had moved in all of their belongings, they were making a checklist of things they had to do once they unpacked.

The first thing on Jaime's list was decorating the apartment to give it more personality and make it feel like home. After moving to the United States as children, the boys had never had a permanent home. Their parents always moved around a lot, so they never lived anywhere long enough to hang posters or make it truly feel like they lived there. Now Jaime wanted permission to decorate the living room with his things, and made an agreement that Angelo could do what he wanted with the rest of the two-bedroom apartment if Jaime could take charge of the living room. Angelo, ever the calmer older brother, was apprehensive at first, but eventually agreed. Jaime had a tendency to be impulsive—he had once used all of his savings to get a motorcycle right out of high school. That had been three years ago, and he didn't even know how to ride it yet. But Angelo trusted that his brother might make more level-headed decisions now that he was three years older.

. . .

Keywords: Resilience Education, financial literacy, banking, renting, credit score, financial analysis

Suggested Citation

Eades, Kenneth M. and Sinclair, Safiya and Fairchild, Gregory B., Living the "Unbanked Life": Jaime, Renting to Own. Darden Case No. UVA-F-1900. Available at SSRN: https://ssrn.com/abstract=3445951

Kenneth M. Eades (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4825 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/eades.htm

Safiya Sinclair

Independent

No Address Available

Gregory B. Fairchild

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
54
PlumX Metrics