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A Behavioral Economics Perspective on Innovations in Savings Programs

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The Assets Perspective

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Abstract

Many programs designed to increase saving behavior among low-income households fail to attract and retain the expected numbers of participants, and thus have only limited large-scale impact. These disappointing results have led to debates about the cost effectiveness and general merit of funding such efforts. At the root of these debates are some more fundamental questions about why people find it so hard to save, and routinely make poor saving decisions. Why, for example, do even those who have the capacity to put some money aside for emergencies routinely fail to do so, resulting in their incurring expensive debt or late fees when an emergency does occur? And why do people underutilize savings programs and products that would help them stabilize their finances and accumulate savings when these are made available to them?

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  1. Piyush Tantia
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  2. Shannon White
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  3. Josh Wright
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Reid Cramer Trina R. Williams Shanks

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© 2014 Reid Cramer and Trina R. Williams Shanks

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Tantia, P., White, S., Wright, J. (2014). A Behavioral Economics Perspective on Innovations in Savings Programs. In: Cramer, R., Shanks, T.R.W. (eds) The Assets Perspective. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137384881_8

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