Saving can be hard

Why a timely nudge might help us save money

Anyone struggling to save money might take inspiration from labourers in rural India. These low-paid construction workers took part in an experiment. When they were paid, some of the cash was put into one envelope, or two, and earmarked as savings. The stakes were raised for some when a picture of their children was attached to one of the envelopes. Dipping into those savings for everyday spending – by ripping through the image of their sons and daughters – made them feel guilty. So, as they tried to avoid this guilty feeling, the amount they saved increased. ….[READ]