Walmart’s 1.4 million employees will now have the option to get paid sooner.
The giant retailer has teamed up with fintech start-up Even, an app that gives workers access to cash before their next payday. The app helps users budget their money by telling them exactly how much they can spend before their next paycheck arrives.
The idea is to help employees avoid payday loans and feel less worried about cash flow, Walmart COO Judith McKenna told the New York Times.
Critics say the move is a sign Walmart isn’t paying enough. But the problem is perhaps more serious than that: as the Times’ Michael Corkery points out, the new service “highlights, albeit subconsciously, the financial difficulties of low-wage workers in the retail and commercial sectors. services. Even as the economy strengthens, many store and restaurant workers are not earning enough to make ends meet. “
Financial expectations have changed over the past decades as prices have risen while wages have not kept pace. Like Richard Rubin, economics reporter for the Wall Street Journal, says NPR: “We have seen costs rise for things that seem to be essential parts of middle class life,” like health care and education.
“So even though the prices of food or electronics or other things haven’t gotten more expensive, those things – health care and education – have gotten more expensive. now in the middle class may be different from what it felt like 25, 30, 40 years ago. “
No matter how much your paycheck is or how often you get paid, almost anyone can pay yourself first and start save for the future. Even if you only set aside a tiny percentage of your income in a retirement account, it’s better to start small than not to start at all.
Here are some tips and tricks to get you started:
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