EWA and Inflation: How to Access Funds as You Adjust

It’s no surprise that inflation has a major impact on personal finances. When your grocery bill, car payment, and other day-to-day expenses are at an all-time high, it’s natural to feel the stress—and to start making a plan to protect your finances.

Let’s dig into the latest research on how inflation is affecting consumers and how EWA presents a solution.

Inflation Is Leading People to the Gig Economy

One key element of inflation is that it lowers consumer buying power. The same paycheck that covered all necessary expenses a year ago might fall short today, which is leading some employees to take matters into their own hands in the gig economy.

In April 2022, a report from Branch and Marqeta found that 85% of gig workers planned to increase their gig work due to inflation, and 59% said faster payouts were the main incentive. Many respondents also shared that having access to cash more quickly played a key role in meeting financial needs.

What else provides faster payouts from earned wages? EWA. When your employer offers EWA as an employee perk, you reap all the rewards of efficient payouts without having to start a stressful side hustle.

Inflation Is Causing High Earners to Live Paycheck to Paycheck

Next on the list, in a high-inflation environment, even high earners are running the risk of living paycheck to paycheck. A LendingClub report found that 36% of respondents earning $250,000 per year or more were now living paycheck to paycheck.

While this extreme example highlights a consumer segment that can likely cut back on unnecessary spending and curb lifestyle creep, it proves that inflation can pose a challenge to almost anyone. Now is the time to get your budget in check to set realistic expectations for the coming months.

If you’ve been a bit behind the curve, you may already have overdue bills or other expenses that need to be addressed. EWA is a simple solution, and since it’s not a loan, there’s no interest to pay back down the line.

EWA Provides Funds Between Paychecks

Finally, EWA plays a major role in making healthy financial decisions. One misconception about EWA is that it leads employees to make reckless purchases, but in a high-inflation environment, having on-demand access to earned wages can actually help save money.

For example, some employees may use EWA withdrawals to buy groceries in bulk, benefiting from lower costs per item. Other employees may use EWA for the gas it takes to get to work, ensuring that they can work their next shift and successfully earn their wages. These choices are calculated and responsible, but they wouldn’t be possible without EWA offering the funds when and where they’re needed.

Learn more about accessing EWA through Keeper here, and if your organization already offers Keeper EWA, download our app below.

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