• With rising inflation, more Americans are feeling the pinch and struggling to pay for essentials.
• The good news is that help is at hand in the form of Earned Wage Access (EWA), a revolutionary payroll model.
• Learn how Payactiv gives you the helping hand you need to save on essentials.

Which is worth more, your money or your life?

You make the choice every day, whether you realize it or not. If you bring home $10 per hour and spend $20 on sunglasses, you’ve just traded two hours of your life for some cool shades. Worth it?

What if you save that $20 instead? You miss out on the snazzy new glasses, sure, but you earn much more. You earn freedom in the form of more cash on hand, and you earn time that you don’t have to spend at work.

Maybe it’s time to learn some new math—the magical math of savings.

Don’t worry; this math isn’t hard. In fact, with Earned Wage Access from Payactiv, it’s easy to save hundreds (or more!) every year on essentials.

Read: . It’s easy to get overwhelmed by day-to-day expenses and make the wrong choices. Take the time to get organized, budget, improve your spending habits, and build your financial health. Use this guide to get started.

Understanding the Cost-of-Living Crisis

Inflation rose to 9.1 percent in June 2022, the highest rate in 40 years. The rise in prices that this has ushered in is having a significant impact on people’s finances and their ability to afford everyday essentials.

A recent study showed that an increasing number of Americans worry about their finances in between paychecks (54% in 2022 vs. 29% in 2018) and have trouble making ends meet between paychecks (51% in 2022 vs. 24% in 2018).

And while forty-one percent of employees have received pay raises this year, only 28% claim to have received a raise higher than the current inflation rate.

The APA’s “Stress in America: 2022” survey revealed that 87 percent of consumers say that the rise in prices due to inflation is a significant source of stress.

The Challenge of Saving Money on Everyday Essentials

Inflation is making a massive impact on Americans’ household budgets. New research reveals that a quarter of consumers put less into investments and savings because they need cash to pay for everyday essentials. The top three areas in need of cash are:

• Groceries (58%)
• Transportation and gas (47%)
• Utility bills (42%)

If you’re feeling financially squeezed, you’re probably wondering how you can save money on everyday essentials when the cost of everything seems to be rising.

Fortunately, help is at hand in the form of Earned Wage Access.

What is Earned Wage Access?

Earned Wage Access programs allow workers to access the money they’ve already earned before their scheduled pay period.

EWA has drawn the attention of employers and employees across all industries, and research indicates that access to EWA has become a priority for job seekers across the U.S.

How Does Earned Wage Access Work?

Most Earned Wage Access initiatives require workers to download a mobile app to gain access to their salaries. The funds are paid directly into the employee’s bank account or loaded onto a dedicated pay card.

EWA generally functions in one of two ways:

1. Employer-sponsored – With this model, the employer partners with a service provider and integrates EWA directly into their payroll system using an API. This ensures the employer can make all necessary payroll deductions before making the earned wages available and that all amounts are deducted as a part of the standard payroll process.
2. Direct-to-consumer – Here, employees engage directly with the EWA provider. They receive funds directly into their bank accounts and are charged a small transaction fee every time a withdrawal is made.

Benefits of EWA for Employees

One of the main benefits of Earned Wage Access for employees is that it’s a great way to ease the financial stress of trying to survive in between paychecks.

It gives workers the peace of mind of knowing they can draw their earned wages should they find themselves needing cash to pay for unplanned expenses such as a vehicle repair or medical bill.

EWA also provides employees a fast and convenient means to access liquidity without resorting to high-interest short-term loans. Payday loans are synonymous with predatory and high-risk lending. These are short-term unsecured loans of about 2—4 weeks designed to help people in a tight financial spot cover their expenses until the next payday. However, there’s a catch. These loans usually come with astronomically high interest rates, some averaging over 400 percent Annual Percentage Rate (APR).

With EWA, since you’re only accessing the money you’ve already earned, there’s no risk of accumulating debt.

How Do People Use Their EWA?

The reasons for utilizing EWA vary between employees from different age groups. Gen Z workers tend to use their earned wages to pay for day-to-day expenses like groceries or to make loan or rent payments.

Millennials use EWA to cover their bills, family-related expenses, and unexpected expenses such as vehicle maintenance.

Gen X and Baby Boomers rely on EWA to cover family expenses, bills, and groceries but also use it to cover emergency medical costs.

Clearly, EWA has broad appeal to workers in all age groups.

Benefits of EWA for Employers

Increasing numbers of employers are seeing the wisdom of including Earned Wage Access as part of their standard employee benefits package.

One reason is that it’s easy to administer. In the past, employees who were short on cash in between paydays would need to approach their employers to request a salary advance. That creates extra work for payroll departments and can also put the company in the awkward position of having to say no.

That’s not good for morale or productivity. And if an employee can’t afford to fix their car or pay their bills, they’re more likely to be distracted on the job or miss work altogether.

Here’s How You Can Save Money with Payactiv

Payactiv, an award-winning certified B-Corp, is the leading provider of Earned Wage Access. Our platform and digital wallet serve 2000+ businesses and level the playing field for millions of workers who struggle with cash flow between paychecks.

We offer a suite of financial wellness services designed to empower people to participate in the economy they helped create. Here are some of the ways you can save money on essentials by using our service:

1. Avoid Sticker Shock at the Pharmacy

Cut your prescription medication costs with discounts available through Payactiv. Those prescriptions could cost a lot less than you think; to find out how much you can save, just enter the medication you need and your zip code into the Payactiv app to find the pharmacy closest to you offering a discount. At the counter, simply show your pharmacist the app to get the deal.

2. Compare & Save on Amazon

No credit card? No problem. You can comparison shop for the best prices on Amazon with the Payactiv app and then have them shipped to your house for free. Use Amazon coupons and Amazon Outlet to save more. Even better, you can use EWA to get all the deals without running up debt.

3. Get Around Town

Hail a ride with Uber, no credit card needed, with EWA and the Payactiv app. Easily get to work without spending the estimated $8,558 per year car owners spend on car payments, insurance, maintenance, and gas. Do the math: at $10 an hour, that’s over eight hundred hours saved.

In this new savings-based equation, Payactiv discounts plus EWA equals an incredible amount of money and time saved. We know that time is money. We’re here to help you with both.

Live the Life You Earned

With Payactiv, you’re in control of your earning, spending, and saving. You can access your pay when you need it, save money, stretch every dollar, and achieve your financial goals faster.

Payactiv is the winner of the “Best Innovative or Emerging Tech Solution” at the 2022 HR Tech Awards, a Silver Stevie® Award for our “All-in-One Digital Wallet and Livelihood Platform,” and “Best Wellness Program” award at the California Excellence HR Awards.

Learn more at https://www.payactiv.com/for-you/.