Tough Economy Leads to Belt Tightening for Many

Some 61 percent of employees said they plan to spend “much less” this holiday season, according to a Tell It Now^SM poll released by ComPsych Corporation. Another 29 percent of employees said they plan to spend “somewhat less” this year.

Employees were asked: Are you changing your holiday spending due to the economic downturn?

• 61 percent said – Yes, I am spending much less than last year
• 29 percent said – Yes, I am spending somewhat less than last year
• 7 percent – No, I am spending the same as last year
• 3 percent – No, I am spending more than last year

Calls to ComPsych’s FinancialConnect service have increased considerably in the current economic climate as employees rethink their budgets. “Are people worried? Absolutely,” said Dr. Richard Chaifetz, chairman and CEO of ComPsych. “We’ve seen a significant increase in calls related to overhauling household budgets and also in hardship cases, where people are seeking outside assistance for paying basic bills. Providing financial information and resources has become more important than ever given the challenges employees are facing.”

The following is a list of the top reasons for calls to ComPsych’s FinancialConnect service:

1. Credit cards/debt management

2. Budgeting questions

3. Mortgage issues

4. Hardship issues

5. Tax questions

ComPsych’s FinancialConnect service is an employer-provided benefit that helps workers navigate financial issues with support, resources and information. The program provides access to certified financial planners, certified public accountants and other financial experts to answer employee questions and help develop solutions.