Save Money An Easier Way With Employee Benefit Savings

Saving money is not easy.

It isn’t easy during Summer, whether or not you have kids – there’s always something to spend it on. And then Winter is just as bad.

Come Spring, most people are either rebuilding what savings they had or paying down extra credit card debt after the Holidays.

Not to mention all the other expenses most people encounter throughout the year, no matter how well you budget. There is always something to spend money on. If you don’t have savings, then this is often something you know you should have, but actually saving money is a different matter entirely.

Don’t worry if you find saving money difficult. You aren’t alone. In fact, you might be surprised to learn that 70% of adults in the UK have little to no savings. For most families, even those with two paycheques and working tax credits or another government benefit for employees, getting to that £1000 in savings can be a struggle.

Debt charity, StepChange, recommend most people have at least £1000 set aside in savings. But in reality, families earning less than £1,500 per month (after tax) often have less than £100 for emergencies. Even those earning more put spending on credit cards, juggle zero percent interest offers, take out store cards and loans instead of saving than spending. We aren’t a nation of savers anymore.

Why doesn’t anyone save money?

Easy, or relatively easy – depending on credit scores – access to credit is one reason. The higher cost of living and lower real wage increases are another. Inflation is rising faster than wages, and Brexit, unfortunately, has made some imports more expensive as the value of the Pound has fallen compared to world currencies.

At the same time, the other reason most people don’t save is pretty ordinary. For most of us, when the money hits our accounts, a lot of it goes back out on bills. Then you have real or imagined pots of cash for different things that don’t all go out at once, such as food, petrol or bus fare, clothes, and some cash for treats. Everything is allocated. There usually isn’t that much set aside for savings, and if there is, chances are it gets spent on something else. You get paid again, and the cycle repeats itself for another month.

Is there a way to start saving?

Yes, yes there is. It doesn’t take a lot of effort, and it’s something your employer could help with: Employee benefits savings accounts.

We work with Credit Unions and employers to provide savings accounts for staff. All you need to do is ask for this as an employee benefit. Once your company is signed up to FairQuid, you apply for a savings account, it gets set up, and every month money goes straight from your salary – like some childcare, pensions or travel to work schemes – into this savings account. Instead of trying to take money out after getting paid, the savings automatically increase and people soon get used to budgeting a different amount every month.

What if you want to withdraw money?

It works exactly like any other savings account. You control it. Our Credit Union partners will give online, phone and branch access, and many may come with debit cards so that you can withdraw funds anywhere. You can also increase or decrease the amount that goes into the savings account; just ask HR or your manager before payroll cutoff. It’s as easy as that. No need to worry whether you’ve set aside money for savings – it happens automatically, every month.

Another benefit are the dividends. Interest charged to those who borrow from credit unions is paid back to everyone who is a member – which includes everyone with a savings account. Once the profit is calculated, that is paid out as dividends to savers.

Start saving today, with a FairQuid Employee Benefit Savings Account. Find out more.