These days just about everything is more expensive than it was only two years ago. Unexpected medical bills, affording healthcare, and the costs associated with caregiving are top financial concerns that can’t be deprioritized.

Six out of ten Americans are living paycheck-to-paycheck, including four out of ten earning more than $100,000 per year. A majority of employees are worried that their expenses will continue to increase.

When cash is low, unexpected bills and medical expenses can throw a major wrench into financial plans that guidance and advice alone cannot solve.

What it means to live paycheck-to-paycheck

Managing a paycheck-to-paycheck budget is not an indicator of low wages or financial mismanagement. People who manage tight budgets are often the most financially savvy, as they know how to put every dollar to work. From daily life, savings, and a little fun– it's all accounted for.

But for those living paycheck-to-paycheck, budgets are tight, and margins are razor thin.

"This is the reality that most people live with."

Individual financial situations are impacted by changes in industry, employment status, living expenses, family size, and situation. Uneven wage growth is a major factor in 59% of employees reporting that their compensation hasn’t kept up with inflation– up from 41% in 2021.

Carey runs a nonprofit organization in San Francisco that impacts the lives of over 8,000 families. Their team lives paycheck-to-paycheck, often working second jobs or side hustles to supplement their primary income. They work hard, save for emergencies, and enjoy attending concerts and taking their college kids out for lunch, but that budget leaves little room for emergencies.

When asked about daily living, she responds: "We’re one piece of bad news away from not being able to sustain the budget we’ve set. It’s not about being irresponsible, it’s that these are the times we live in, and these are the realities of our financial situation.”

Employers can play an important role in improving employee financial wellness

Carey says working for their nonprofit comes with many perks– it’s mission-oriented, flexible, and has a great benefits package. Offering great benefits is paramount to keeping employees happy and healthy and serving the community.

“To have a healthy workforce you need a nice benefits program, but that doesn’t necessarily address the financial side– it’s just a piece. These great benefits are meant to enable us to participate in our communities and live our own lives.”

However, personal finances are just that– highly personal, and employees don’t always feel comfortable expressing financial struggles to their employer. Yet three out of four employees want help with their personal finances, and financial benefits have increasingly gained popularity with employees over the last decade.

For Carey’s organization, part of the solution to addressing that financial piece has been adding interest-free financing for health and veterinary care to their benefits package. She says, “We consider TempoPay to be a huge advantage…it means that my staff will make and take those regular appointments and keep themselves healthy.”

It's time for TempoPay

Since launching in 2022, TempoPay has helped employees pay for medical care, pharmacy expenses, labs, dental, and vision care– including outstanding medical bills.

By making payments manageable, at no cost to the employee, employers actively relieve the financial burden caused by medical expenses and encourage employees to seek the care they need sooner than they would have before.

“This is a benefit that makes it easy to say yes." Says Carey. "I think that we’ll be able to claim significant positive health outcomes for employees over time, just because they don’t have to overthink their healthcare to the extent they did before TempoPay.”