In efforts to ensure that you are supporting your employees’ financial wellbeing, education on managing money and spending habits are vital, especially now as many are struggling with understanding the best approach to financially navigating the COVID landscape.
The trend for buy-now-pay-later (BNPL) providers like Afterpay and Zip Pay has taken off amid the COVID crisis. Both companies reported record high sales in the last quarter of the financial year, and their respective share prices exploded upwards. But what does this mean for employees? Whilst BNPL programs seem similar to credit cards and the association with ‘bad debt’, there are both pros and cons to using BNPL providers.
In a recent article from Smart Company, Dr Billy Sung provides commentary around these BNPL providers and the psychology of using such services, including that consumers are overall less satisfied with their purchase when using BNPL programs. Research also shows that consumers are more likely to spend more, outside of individual budgeting goals, using BNPL.
There are positives – there is no interest associated and younger people are less likely to fall into credit card debt if using BNPL appropriately.
The Benefit3 Team have developed a Cashflow Workshop that educates your employees around healthy spending habits and leaves them with usable strategies to better manage their budgeting & cashflow, including appropriate use of BNPL services. This program will be rolled out from December 2020 and can be conducted in person or over video conferencing.