Nov 15, 2018 by Jaclyn Lefkowitz and Emily Zimmerman
A recent report by the World Economic Forum estimated that by 2050 the retirement savings gap may reach $400 trillion, leaving hundreds of millions of people at risk of poverty in old age. This problem is particularly acute in Mexico and across Latin America. Aging populations, low mandatory contribution rates, and large numbers of informal … Read more.
Aug 23, 2018 by Ariadna Vargas
Saving money, even in small amounts, has countless benefits. It helps low-income households build financial resilience—the ability to manage unforeseen expenses and avoid crises. However, saving is challenging for everyone—even when we intend to save more, human tendencies such as present bias, depletions in self-control, and limited attention tend to get in the way of … Read more.
May 3, 2018 by Dan Poniachik
“It’s very hard for me to save, because I have so many day-to-day expenses for my small kiosk. Still, at the beginning of the month I manually transfer part of my commission to my savings account, that way I don’t use it for other purposes during the month. It would be great if this transfer … Read more.
Mar 29, 2018 by Katy Davis, Maddie Kau, & Abigail Kim
Digital tools such as automated savings and investment, expense tracking, and person-to-person payments save people time and help them manage complex finances. Useful features like these can even support overall financial health, particularly for low- and middle-income consumers, if traditional financial services don’t meet their needs. Widespread adoption of these services also benefits financial providers … Read more.
Feb 28, 2018 by ideas42
Building a savings cushion is easier said than done. Irregular cash flows and unpredictable expenses make it difficult to determine how much to save. After surveying balances across accounts and projecting future bills, you still have to either make a trip to the bank or navigate an online portal to actually move money into a … Read more.
Feb 8, 2018 by Juan David Robalino & Andrew Fertig
Retirement savings are a serious challenge in Mexico. With a low overall participation in the formal pension system and one of the highest rates of elderly poverty in the region, it is essential for workers to make voluntary savings to ensure their financial health during retirement. Unfortunately, less than 1% of account holders actively save … Read more.
Dec 18, 2017 by Maddie Kau & Abigail Kim
Update: the behavioral playbook is now available here. Cashing a check seems like a simple task. But in practice, it involves many small, hassle-ridden steps that take time and energy: planning when to go, finding a nearby ATM or retail location, remembering to bring the check, traveling to the location, and waiting in line. Fortunately, … Read more.
Oct 30, 2017 by Vivien Caetano, Katy Davis, & Erin Sherman
It’s one thing to read about behavioral science or attend a one-time training on how it’s been used to improve programs. It’s another to take those insights and apply them to the real world yourself. That was the driver behind our Behavioral Design Project for Promoting Financial Health, in which 11 organizations actively learned behavioral … Read more.
Jul 25, 2017 by Hyunsoo Chang & Will Tucker-Ray
Millions of Americans struggle to manage their complex finances, even with countless budgeting tools that exist to make the process easier. The myriad of features included in these kinds of tools can even add to the complexity, and they often don’t account for the limited time and attention that people experience in real life. That’s … Read more.
May 8, 2017 by David Munguía Gómez
Saving money is important not only for long-term needs like retirement but also for expenses in the short term. This is because incomes and expenses are not always constant, and people can’t necessarily predict when they will need more cash. A reliable savings cushion is critical when people encounter large, unexpected costs or lose their … Read more.