Flex Dollars

AAA

DEFINITION of 'Flex Dollars'

1. A local electronic currency used by some universities to facilitate students' purchases of food and snacks under the school's meal plan. Flex dollars are usually intended for in-between-meal food purchases; meal purchases are generally covered by a separate component of the overall meal plan. Flex dollars eliminate the need to carry cash for small purchases, and some schools have dining establishments that offer students a discount for paying with flex dollars. Students can check their balances and add funds to a flex dollar account online.


2. A term used to assign values to an employees benefits by insurance companies. Flex dollars are assigned to employees and give them the flexibility to choose their benefits with their flex dollars until they are used up. The benefit in doing this is it gives the employee the option of assigning a larger amount of coverage such as dental to one area while lessening the coverage in another area.

INVESTOPEDIA EXPLAINS 'Flex Dollars'

1. Flex dollars are stored electronically and the data is encoded on a wallet-sized card, often the student's school ID card. The accounts usually work on a declining balance system (similar to a debit card) whereby a student selects how much money to put in the flex dollar account and amounts are subtracted each time he or she makes a purchase.





2. An example is being assigned $1000 to split between dental, vision and prescription drugs. An employee in this case can split it evenly between all three, or put all in just one if they feel that would be most beneficial to their situation. Some companies provide basic benefits coverage and add flex dollars for better coverage.

RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  2. Digital Money

    Any means of payment that exists purely in electronic form. Digital ...
  3. Functional Currency

    The primary type of money that a company uses in its business ...
  4. Secure Electronic Transaction - ...

    A form of protocol for electronic credit card payments. As the ...
  5. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  6. Currency

    A generally accepted form of money, including coins and paper ...
Related Articles
  1. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  2. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  3. 5 Money-Saving Shopping Tips
    Options & Futures

    5 Money-Saving Shopping Tips

  4. Shopping Online: Convenience, Bargains ...
    Options & Futures

    Shopping Online: Convenience, Bargains ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center