in Money Management Tools from Even Responsible Finance, IncUnaffiliated
Even is an alternative to payday loans, a saving tool, and a budgeting assistant rolled into one elegantly designed app. Even is a useful app for employees who receive a paycheck on a regular schedule but in irregular amounts and sometimes struggle to save money, keep a budget, or even cover basic bills.
Even was founded in 2015 and is based in Oakland, California. It has an A- rating with the BBB and is backed by the founders of Instagram and Venmo, and top executives at Square, Amazon and Twitter.
How Does Even Work?
Even guarantees workers receive an average-sized paycheck every payday. If you had a bad week and didn't get the hours you hoped for, Even automatically sends the money to make up the difference between you paycheck and your average paycheck. What's exciting about this product is that the loan is interest-free and that Even will automatically pay itself when you have above average paychecks. This can be a lifesaver for people with unreliable paychecks that regularly resort to payday loans.
Even also recommends users the amount of money they should put away for a rainy day. With the user's authorization, Even can withdraw the recommended amount and deposit it as savings in Even. The user can then withdraw it whenever there is an emergency of unexpected expenses.
Even is not available for freelancers or workers who don't receive a paycheck on a regular schedule.
How Much Does Even Cost?
Even has a weekly $3 subscription charge. This charge is Even's only way of making money.
Notice that money deposited with Even does not earn interest for users or Even. This is because of banking rules that don't allow companies like Even to pass on the interest earnings to customers. Because customers aren't allowed to receive interest on their money, Even chooses to not earn interest on users’ savings either.
What Are The Advantages and Disadvantages of Even?
- Even is a new concept in small personal loans that can save a lot of money for people who regularly use payday loans.
- It also makes building an emergency fund, which most people in Even's target audience don't have, easy and less painful.
- Even's budgeting tool helps users plan ahead with the benefit of a predictable income. The loans are interest free and payments are only charged when borrowers can afford it.
On the other hand, Even does charge a $3 weekly fee whether you use their interest-free loans or not. Users don't receive interest on the money they deposit as savings with Even either. You could argue that Even charges for a service users could do on their own. In other words, if you are good at budgeting your money and you already have an emergency fund, you probably don't need to pay Even to do it for you.