re: The system is designed to keep people poor

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Sounds like someone just came up with a good business plan to take advantage of those with poor financial decisions.

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That's called financial predation. It's the same thing as digging a pit in the hopes that another person will fall into it.

Deliberately exploiting another person's poverty, desperation, or ignorance may be legal, but it's certainly scummy. There need to be guardrails in place beyond "well, just don't be dumb enough to fall victim to the professionals who have spent a ton of money and time coming up with ways to take advantage of you."

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My teenage daughter (no pics) got a lifeguard job this summer. She set up all of her employment accounts and to get paid she has to use a service called DailyPay.

She can get her paycheck for hours that she worked the next day, but it charges around 5% to do this. Of course that's dumb so she just waits until traditional direct deposit day, but most everyone she works with is taking daily deposits.

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That's called financial predation. It's the same thing as digging a pit in the hopes that another person will fall into it.

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I walked by a payday loan place just yesterday.

On one hand, I see a place like this satisfying a market need. However, at astronomical financing costs this is where I fall off.

Kicking people down in the name of risk when there are ways to diversify / mitigate the risk seems Greed > Market.

I would love to get in that loan book to see the real risk, how they price that risk, their margins and how they are / not mitigating it. Until, it’s hard to believe it is justified.

Satisfying the need…and price the real risk.

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My kid worked part-time for 2 years in high school and has $13k in a Roth IRA.

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Good job. When I started my first job, I had a family friend explain compound interest via a 401k plan. When that first paycheck arrived, I started putting $10 per paycheck in a retirement account. When the first raise came along, I increased that to $15. I gradually increased it to a steady $50 per week. It's really not that difficult to save for the future.

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to get paid she has to use a service called DailyPay.

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Highly doubtful. They are optional. A company cannot legally require you to use a EWA app as its only method of receiving your wages.

Personal Responsibility. It’s not hard.

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professionals who have spent a ton of money and time coming up with ways to take advantage of you

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This is an issue with a lot of financial stuff like predatory lending (payday loans, cash advances, etc. and even student loans) But I don't think that's the case here with the OP's daughter and her paycheck. There are several similar scenarios like Venmo for example will process a transfer in 2-3 business days normally or you can have it processed immediately for a fee. My bank does the same with mobile deposits. It's a convenience fee and nothing more. It's much less "scummy" than payday loans and other predatory lending in my opinion where they intentionally try to take advantage of people.

it's a zero sum war. can't have winners without loser/rich without poor

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to get paid she has to use a service called DailyPay.

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he just waits until traditional direct deposit day

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So she doesn't in fact have to use dailypay. Theres no fees if you use Dailypays debit card. It's a payroll advance, of course there's going to be some kind of fee associated with it. No one is required to use it, but it does offer some flexibility.

Not sure this has anything to do with the "system" keeping people poor.

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Theres no fees if you use Dailypays debit card.

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As in, taking your pay on a third-party (neither the employee nor the employer) debit card? Why not just hand the employee a check or direct deposit the pay?