Melina Palmer Png

Can Behavioral Economics Increase Savings?

Melina Palmer

I’m so excited to finally talk to you about my study on behavioral economics and increasing savings rates. In my master’s program, I was required to do my own study and submit it to at least one location for publication. I already had a relationship with the Filene Research Institute, so I decided to reach out to them before choosing the focus of my project.

Their top choices were helping people save money and increase loyalty. A group of researchers from Duke University did an experiment in Kenya to try and find ways to increase savings. After six months, the surprising results were that a using a gold coin to mark off weeks of savings outranked sentimental reminders and matching funds. I loved these findings and wanted to see if this could be replicated if modified for the US.

My white paper is now published, and I finally get to talk about the study and share it with you. I was privileged to have a conversation with Dan Ariely which helped me narrow down my three main concepts for the study which are time discounting, reciprocity, and a physical manifestation of savings. I hope you enjoy the results.

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