Savings

How You Say It Really Matters!

Behavioral Economics Framing

At Understood Connections, we are fascinated by language, and that’s a good thing because much of the research around how people analyze choices and make decisions focuses on how simple shifts in language can have a significant impact on the behaviors.  Behavioral Economics (BE) gives us a number of ways to use language to nudge…

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Doing Great Things with Tax Refunds

A member came into our client’s financial center in tears.  Her 15 year-old car, which she used for commuting to her two jobs, had just broken down.  She needed $300 to pay for the repairs and she had a total of $120 in her accounts; payday was 8 days away.  Now what? I’m sure your…

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Paycheck to Paycheck – Use Tax Refunds to Break the Cycle

credit unions tax refunds

Todd’s story is not unique: a weather catastrophe has ruined his car and caused him to lose prized possessions;  the clothes on his back are from strangers, and he hasn’t gotten paid since his employer has been closed for weeks.  Expenses are piling up, the landlord wants the rent, and a savings account doesn’t exist.…

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Growing Deposits with Tax Refunds

Credit Unions Tax Refunds Behavioral Economics

Loan growth is picking up and many credit unions are, for the first time in a number of years, dusting off their deposit growth plans.  Certificate specials, money market marketing campaigns, and even Christmas Club accounts are showing up on the radar.  CFOs and ALM committees are looking at pricing levels to figure out how…

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Rethinking Tax Refunds

member tax refund

Did you know the tax refund check is the largest income “windfall” for many households?  Every spring this money shows up in accounts, some without a plan for its use.   Most likely, many of your members would be better off if they saved a significant portion of their tax refund.  Here’s a fresh idea: roll…

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Behavioral Economics at Work

Behavioral Economics At Work

If you want to encourage smart behaviors, make the smart thing easy to do.  That is one of the messages we share with leaders in our behavioral economic workshop.  At a recent workshop in DC we saw a great example of a credit union who is already executing that strategy. Like many financial institutions, Digital…

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Connected Credit Unions

Credit Unions Behavioral Economics

We just returned impressed from a 1 ½ day behavioral economics workshop co-sponsored by our friends at Callahan & Associates. We pulled together 18 leaders from credit unions large and small from across the United States to discuss effective ways to use the dynamic science of behavioral economics to enhance their connections with members and…

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Want to Change Behavior? Make it Simple.

Credit Union Changes Behavioral Economics

A credit union was frustrated.  A significant number of their members had little to no savings.  To help, the CU provided financial literacy training. The class was well attended, and at the end, participants agreed they needed to save more and most were able to identify at least three things they could do immediately to…

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Top 5 Things We Learned About Behavioral Economics in 2017

2017 Behavioral Economics

2017 was a big year for Understood Connections and Behavioral Economics.  A lot of things happened, but here is our list of the top 5 things we learned.   Behavioral Economics (BE) is Legit! Richard Thaler, one of the fathers of BE, won this year’s Nobel Prize for Economics.  For years, classic economists paid little…

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You’re Using Behavioral Economics – And You Don’t Know It.

Behavioral Economics

Recently we had an interaction with a credit union executive who was bothered by the notion of using behavioral economics to nudge members to save more.  The thought was this technique was big brotherish and manipulative. They wanted members to make their own decisions, free from any influences. What this leader failed to understand is…

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