Kudos to Delta Air Lines for helping their employees to save and encouraging a lifestyle of saving. It’s a great move and a timely reminder, as we reach the end of the year, that we should make a concerted...
Kudos to Delta Air Lines for helping their employees to save and encouraging a lifestyle of saving. It’s a great move and a timely reminder, as we reach the end of the year, that we should make a concerted effort to save.
Delta Air Lines Encourages Saving Via Generous Gift To Employees
In a bid to jumpstart savings, Delta is offering each employee $1,000 with a few strings attached.
First, Delta employees must take a training course on saving money Upon completion, they receive a $750 deposit into their savings account Then, Delta matches the first $250 deposited into that savings accountThus far, around 33,000 employees, about 29% of those eligible, have signed up.
Delta CEO Ed Bastian explains the reason for this change is the alarming lack of savings the average American has:
“When we looked at the fact that over 50% of Americans don’t have $1,000 they can put their hands on today in the event of a financial emergency, and the amount of stress and insecurity that creates, I said I can’t solve that for the world, but I can solve that for the 100,000 people at Delta Air Lines.”
That’s a sobering stat. It’s also a reality for many and a scary one at that. But this program is a great response and employees participating in this program are averaging $74 per month in savings via direct-payroll deductions.
Oh, I can hear the objections. What a “privileged person” problem. What a “rich” problem. How can people worry about savings when they cannot even meet their basic monthly expenses? Baloney. Ask yourself, if you are reading this now, if you spend money frivolously that is actually unnecessary. Because while far too many Americans live in poverty, half the country does not. But half the country apparently does not have even have $1,000 in their bank accounts.
Rather than consider savings a luxury, more should prioritize it over meals out, clothing, travel, subscription services, the latest electronic device, or other thing that are quite nice, but are not necessities. No, I’m not advocating for living a life like a nun or monk only to die with a large bank account to go to others. But finding that balance is key.
In my own life, I was raised in an extremely frugal way, had a period of reckless spending while trying to grow my import-export business, and now have found what I hope is a very good balance. I’m thankful that I can put a little bit of money away each month so I do not have to work the rest of my life (even though I love my work so much I do not plan to ever stop).
CONCLUSION
Delta is offering $1,000 to employees in an effort to encourage savings. It will be interesting to see if this program leads to a discernible uptick in savings. If your employer does offer matching, make every effort to take full advantage of it – it’s free money. And while there are some who cannot save, establishing a rainy day fund is the sort of basic financial goal that every person should prioritize in 2025.
(image: Delta // Hat Tip: Paddle Your Own Kanoo)