Don’t Let a Shutdown Shut You Down Financially

It’s hard to imagine that you could ever be in a situation as an employer where you cannot pay your employees even though they are putting in the work, or you are being forced to not let them work. Unfortunately, this is the reality for our government and over 800,000 Americans who will not be receiving a paycheck today. With the government shutdown in its fourth week, those that have been affected are really feeling the impact.

While there is some reprieve for furloughed employees with some banks and credit unions offering short term, no-interest or low-interest loans, or waiving late fees for mortgages, credit cards and other loans, it’s not enough. Furloughed federal workers will have to dip into their savings account to pay bills and cover living expenses, but that’s only IF they have one. Unfortunately, too many people don’t.

The shutdown has brought to light a bigger and more lasting problem in our country: the number of Americans living paycheck to paycheck. According to a 2017 survey by CareerBuilder, 78% of Americans currently live paycheck to paycheck and according to a recent report from the Federal Reserve Board, four in ten Americans cannot cover an unexpected expense of $400. Many of these people are your employees and co-workers.

It’s not surprising then that financial stress is one the biggest issues in the workplace and it’s almost always negatively impacts workplace performance and productivity. While this shutdown has caught many Americans off guard, it doesn’t just take a federal government shutdown to wreak havoc on the finances of people around you. Now is the optimal time to help your employees become prepared for an unexpected emergency.

Our mission at LifeCents is to help people achieve financial security – one step at a time. We do this by helping people improve their financial acumen, break bad financial habits, form better ones and gain the confidence they need to make better decisions every day with their money. In turn, this helps people–your employees–feel more financially secure knowing that they are better prepared to handle the unexpected.

To get started helping your employees improve their financial health, schedule a demo of LifeCents today. Contact us at info@lifecents.com.

Photo credit: Associated Press