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Helping Employees Save for the Unexpected Pays Off

August 07, 2019 / Joanne Sammer

A survey from the U.S. Federal Reserve garnered attention when findings showed that a significant portion of the population would be unable to pay for a $400 unexpected expense outright. The survey, conducted in October and November 2018, also showed that 17 percent of adults are not able to pay all of their current month's bills in full, and 12 percent would be unable to pay their current month's bills if they also had to pay for an unexpected $400 expense. Individuals who are this cash-strapped may have to resort to extreme measures in even the most mundane circumstances. The survey, known as the Survey of Household Economics and Decisionmaking, found that 27 percent of the 11,440 respondents would borrow or sell something to meet an unexpected $400 expense, and 12 percent would not be able to cover the expense at all. HR executives have likely encountered employees in similar circumstances. These employees often have their wages garnished, rely on high-interest payday loans ...