A Kansas credit union gives staff money for financial emergencies

Given the number of Americans who cannot pay for unexpected expenses, Meritrust Credit Union is encouraging staff to use holiday bonuses for an emergency fund as part of a broader financial health initiative. .

The $1.9 billion-asset Wichita-based company announced this week that it is giving each of its 370 full-time employees a one-time net deposit of $400 along with their regular paycheck on Dec. 22.

The payouts come amid the recently-released 2022 Economic Well-Being of U.S. Households survey by the Federal Reserve, which found 37% of Americans do not have funds to cover a $400 emergency.

The company said in a press release that employees are encouraged to set it aside to start or grow their emergency savings fund.

Meritrust said it believes that financially-healthy employees are critical to helping its members navigate their own financial wellness journey.

"We understand that in order to best serve our members, we have to focus on financial health from within," said President and CEO James Nastars in the release. "Knowing that our employees are equipped to not be part of that 37% is just one step in the process of supporting their financial well-being."

In 2023, Meritrust also launched a financial well-being initiative for both members and employees centered around four financial pillars: save, spend, borrow and plan. 

And the first step – and a key building block for improving financial well-being – is establishing an emergency fund, beginning with the $400. 

"They also know this is sometimes the most difficult step because life happens," said Chris Wolgamott, director of financial well-being at Meritrust. "Saving is vitally important to our overall financial health."  

All Meritrust employees are also eligible to receive confidential, one-on-one financial coaching services from its financial well-being team and participate in annual financial education throughout the year.

And these efforts can also help in attracting and retaining talent, according to B.J. Berrettini, executive director for the search firm AJ Consultants in Kingston, Pennsylvania.

In addition to financial institutions, other companies including UPS, Starbucks and Delta Airlines started to offer an emergency savings fund in response to employee challenges with rising inflation, Berrettini said in an interview. 

This "progressive" benefit was created to reduce financial stress, boost productivity and attract or retain talent, he said. 

"For credit unions, an emergency savings fund hits much closer to home due to their commitment to financial literacy," Berrettini said. "While the creation of an emergency savings fund may not notably improve disposable income, it may have a positive impact on an individual's perception of their credit union employer."

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Such actions are louder than words when it comes to a credit union's commitment to the financial well being of its members. 

Berrettini said that offering this benefit and others like it, may not keep someone from exploring the market to further their career "and it may not be enough to attract your next rock star, but it represents another block in the foundation of a caring culture your members and the surrounding communities will be drawn to," he said. 

Last year, Wright-Patt Credit Union in Beavercreek, Ohio, gave one-time stimulus checks of $500 to each of the 1,200 people on its staff.

The $8.1 billion-asset credit union said the money was to help its employees with rising inflation.

Meritrust Credit Union earned $9.7 million in the first three quarters of 2023, a 32% decrease compared with a year earlier, according to call report data from the National Credit Union Administration.