Articles exploring how money works — written for young Mexicans who want to understand financial concepts without being sold something in the process.
The CAT (Costo Anual Total) appears on every credit product sold in Mexico — from credit cards to car loans. It's a standardized figure designed to make comparison easier. But what exactly does it include, what does it leave out, and how should you use it when evaluating a credit product?
Putting money aside and saving toward a specific target are two different behaviors. The first is reactive — whatever's left at the end of the month goes somewhere. The second is intentional — a defined target shapes how you allocate money from the beginning. The distinction matters more than it might seem.
Temporal discounting describes the tendency to value present spending over future benefit. It's not a character flaw — it's a documented cognitive pattern. Understanding how it works is the first step toward making decisions that account for it rather than being driven by it.
An emergency fund is often described as the foundation of personal financial stability. But how large should it be? Where should it sit? And what counts as an emergency? These questions have different answers depending on your income type, family situation, and employment stability.
The 50/30/20 budgeting rule — 50% needs, 30% wants, 20% savings — is widely cited as a starting framework. It's useful as a general orientation. But applying it in Mexico requires accounting for realities that the original framework doesn't address: informal income, family financial obligations, and housing cost patterns in major cities.
Meses sin intereses and BNPL schemes are increasingly common in Mexican retail. They can be useful tools — or they can quietly accumulate into a significant monthly obligation. Understanding the mechanics, the conditions, and the risks is essential before using them regularly.
