Better East Texas: Pros and cons of daily vs. weekly pay

Better East Texas: Pros and cons of daily vs. weekly pay

TYLER, Texas (KLTV) - We are all familiar with at least the concept of how ride sharing services like Lyft and Uber work – you download the app, connect a financial card to it and order a driver. But these and other app-based and digital world services offer something that traditional jobs don’t offer their employees. And that is the concept of instant pay.

Think about it, for decades, if you have a job, you work and wait a week, sometimes two, before you get paid. Well, there is an emerging trend in the employment world where employers offer a daily paycheck or pay deposit to their employees. Proponents say, it helps those living paycheck to paycheck, which is a large portion of the population. In that way, it would help someone that needed money for an unexpected expense – medicine, car repair, and the like. But the prospect of a daily paycheck is also troubling in some cases because of a lack of discipline with many people.

We are bombarded with marketing messages at every turn and impulse buying is already an issue for many people. So, the prospect of a daily deposit in a checking account, could be too much some. We’ll see how far this trend goes but pay attention because there are already some services that offer this through mobile apps, that charge a small fee, so it is likely to become more widespread.

It is also a tool that some employers are using to attract new employees in the ever-tightening job market. So thank you technology in the digital age, but hopefully the option of daily pay doesn’t give a false sense of financial stability to those may really not have it.

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