Restoring Dignity: Helping Employees with Everyday Expenses

Ask people what “dignity” means, and you’ll likely get a broad spectrum of answers.

Dignity is a complex concept. At its most basic level, it refers to the right to be valued and respected for one’s own sake. It can also be defined as a basic worth or status that all people are entitled to and which grounds fundamental rights and moral duties.

What is Financial Dignity?

There are many types of dignity. In personal finances, dignity is the ability to make informed financial decisions that help us reach our long-term financial goals. It can also mean having the freedom to make our own decisions about when and how we spend our money and being respected for that right.

Why is Financial Dignity Important?

Financial dignity can lead to a sense of control, autonomy, and freedom with respect to financial life. It can also have an impact on human dignity, as people who lack financial dignity may experience stress, low self-esteem, and lack of concentration.

5 Ways EWA Shields People from Financial Vulnerability and Restores Dignity

At Payactiv, we believe that financial dignity is the promise of the American Dream. It’s the promise that every worker can achieve employment, educational opportunities, and overall financial security.

But for all those who have acquired this success, many have been left behind to struggle with debt, past-due bills, maxed-out credit cards, and the stress of insolvency.

One of Payactiv’s business pillars is providing Earned Wage Access (EWA)¹ services to low- to moderate-income employees so they can achieve financial dignity. EWA gives workers the option of collecting some or all of their earned wages immediately after completing their shifts.

We regularly use survey data to measure the impact of our service. Our latest research unveiled 5 compelling ways EWA is helping restore American workers’ financial dignity.

1. Sometimes, EWA is the Only Way Employees Can Pay for Vital, Everyday Expenses

Food, transportation, and utilities are the most common expenses users spend their earned wages on:

• 71% use Payactiv to buy food.
• 64% use their earned wages for transportation.
• 58% apply EWA to utilities.
• 42% use EWA for household needs.
• 31% access funds for rent or mortgage.
• 29% rely on EWA for emergencies.

“Payactiv is a security blanket, and in today’s economy, it’s absolutely needed.”—Pennsylvania Payactiv user.

2. It’s Helping Millions of Americans Cope with the High Basic Cost of Living

• 75% of people say Payactiv has helped them cope with inflationary pressures.
• 74% of people say not having Payactiv would negatively impact their household.
• 71% of people say their ability to manage their finances has improved because of Payactiv.

3. It Reduces Reliance on Payday Loan Options and Overdraft Fees

Before Using Payactiv:

• 30% of customers used traditional payday loans.
• 33% used overdrafts to access money between paychecks.

After utilizing Payactiv, these payday loan and overdraft use statistics plummeted by 70% and 69% respectively.

“[Without Payactiv] I would have to go back to payday loans and borrowing from a friend or a family member.”—Missouri Payactiv user.

4. It Puts Employees on the Path to Long-Term Financial Stability and Resilience

When coupled with financial wellness tools and resources², such as those available for free from Payactiv, EWA sets the stage for workers to advance toward long-term financial literacy and resilience. Financial wellness benefits equip people with critical skills and capabilities:

• Understanding one’s personal finances.
• Recognizing and using financial products effectively.
• Budgeting and forecasting personal finances.
• Understanding credit and debt management.
• Investing and understanding financial risks.

5. It’s a Win-Win Solution for Employers and Employees Alike

Earned Wage Access (EWA) is a crucial factor in job selection, and having immediate access to earned wages is a highly sought-after benefit.

• 54% of people surveyed say earned wage access is an “extremely important” benefit for employers to offer.
• 70% of users report improved satisfaction with their employer because of Payactiv.

Let’s Restore American Workers’ Dignity Together

Payactiv is here to help your employees pursue and achieve immediate and long-term financial dignity and all the benefits that accompany it. We make it easy for you to help them access, plan, spend, and save, and achieve financial dignity today while building security, stability, and savings for tomorrow.

Ready to learn more about Payactiv’s Service? Book your demo now.

¹Earned Wage Access requires employer participation. Employees can only access a portion of the wages they have earned to date.

²Standard data rates from your wireless carrier may apply.

All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.