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. Currency

    A generally accepted form of money, including coins and paper ...
  6. Debit Card

    An electronic card issued by a bank which allows bank clients ...
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. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center