Resource courtesy of Tilson’s strategic partner, FinFit.
Discover how paycheck-to-paycheck living impacts employers and explore practical tips for helping employees ease the financial strain this back-to-school season.
As the back-to-school season approaches, many employees are feeling the pressure of additional expenses. For those living paycheck-to-paycheck, these costs can be particularly burdensome, causing stress that impacts both their personal lives and professional performance. Employers, too, face challenges as financial strain among employees can lead to decreased productivity and increased absenteeism.
Data shows that a significant portion of the workforce lives paycheck-to-paycheck, with little to no savings to buffer against unexpected or larger expenses. According to FinFit’s Inside the Wallets of Working Americans report, 74% of Americans report living paycheck-to-paycheck. This financial insecurity is exacerbated during periods of increased spending, such as the back-to-school season.
For employers, the implications are clear. Financially stressed employees are more likely to be distracted at work, take more sick days, and experience higher levels of burnout. This can lead to a decline in overall productivity and an increase in turnover rates. By understanding these challenges, employers can take proactive steps to support their employees and mitigate these negative effects.
The National Retail Federation estimates families with children in elementary through high school plan to spend, on average, $875 per household during back-to-school season. With that in mind, we’ve prepared some tips to your employees help navigate these costs:
- Make a detailed list: Start by jotting down everything your student needs – and we mean everything. From pencils to notebooks, a detailed list will keep you on track and avoid any impulse buys.
- Explore local discount & dollar stores: These hidden gems can offer amazing deals on school essentials. Don’t overlook your local dollar stores and office supply stores for the best bargains.
- Take your time shopping: Don’t rush! Keep an eye out for sales and compare prices to get the best deals. Patience can pay off big time. 85% of back-to-school shoppers surveyed by the NRF indicated they were waiting for Prime Day and other retailer sales to purchase their school items.
- Utilize employer resources: Remind employees of your FinFit financial wellness benefit. You can access comms materials here. Also include in your reminder any discounts, or support services your company offers. All these resources can provide valuable assistance during financially stressful times.
By sharing these tips and fostering a supportive work environment, employers can help alleviate some of the financial pressures their employees face. This not only improves employee wellbeing but also enhances overall workplace productivity and morale.
