Nudging Youth to Develop Savings Habits: Experimental Evidence Using SMS Messages
Nudging Youth to Develop Savings Habits: Experimental Evidence Using SMS Messages
7 July, 2020 •Similar Articles
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A field experiment articulating financial information via cell phone text messages and financial decisions among low-income youth in Colombia. For twelve months, youth accountholders are randomly assigned to receive either: (a) monthly financial education messages, (b) monthly savings reminders, (c) semi-monthly reminders, or (d) control. After 12 months, account balances in monthly and semi-monthly reminders groups increase by 28% and 43%, respectively, relative to controls. Financial education messages do not increase balances. Over two thirds of balance increases in reminder groups are net savings. Savings effects of reminders last eight months after youth stop receiving messages.