Get All Access for $5/mo

Employers Are Helping Workers Ward Off Financial Catastrophe By Offering This Helpful Perk More companies have started offering assistance with saving for unexpected expenses.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

From four-day work weeks to generous sign-on bonuses, companies have been doing all they can to attract and retain workers in a competitive market. Now, with rising inflation putting millions of Americans under financial strain, a new perk could be a game-changer for countless employees: assistance in saving for unexpected expenses.

These "rainy day" funds are intended to help employees have a savings cushion in the instance of unexpected financial setbacks.

Related: Are You Prepared for a Major Medical Crisis? Here's How a Crisis Can Affect You Financially

According to the Consumer Financial Protection Bureau, about a quarter of consumers have virtually no savings set aside for emergencies, which could ultimately lead to debt and withdrawal from retirement funds. According to research from Urban Institute, even small cushions between $250 and $700 can prevent catastrophes like eviction.

Starbucks is the most recent employer to offer saving options to workers, The New York Times reported, and smaller start-ups like SecureSave have begun offering tools to help workers save.

Related: Young Workers Are Not Saving For Retirement, According to a New Report

SecureSave uses a partner bank to transfer after-tax funds to worker savings accounts, which employees can track and transfer when needed using a mobile app. The company charges employees between $1 and $3 a month, and the average worker saves $38 per paycheck.

Although the amount might not seem significant, the savings add up, and unlike long-term saving, individuals are less likely to panic when faced with unexpected catastrophes or momentary rises in the cost of living due to inflation when they have a "rainy day" fund set aside already. The benefit of saving this way means employees don't see the money leave their paychecks, so they're less likely to miss it.

Although employee perks like flexible working schedules and bonuses might seem enticing, in today's current state of economic uncertainty, access to savings through an employer is an increasingly competitive benefit.

Related: Want to Hit Your Retirement Savings Goal Early? 5 Tips for 2022

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.