You have a message…
Modern technology can be used in lots of positive ways – and boosting savings appears to be one of them.
Experiments have found people who get text messages that remind them of their savings goals tended to save more. The studies include How reminders increase saving and Under-savers anonymous.
If messages are specific – perhaps reminding you that of your goal of a special holiday with friends and family – they may be particularly effective.
More persuasive than money?
For Under-savers anonymous, the authors ran two experiments in Chile – one with self-help group meetings and the other using text message reminders. Both saw participants’ savings increase. Referring to the group meeting experiment (in which the number of deposits grew by 3.5 times and the average savings balance almost doubled), they wrote it seemed to be even more effective for those involved than the offer of a higher interest rate.
The text messages also worked well and had the benefit of reaching the participants without them having to turn up to a meeting.
Savers can use the lessons in their own way.
- Set up reminders – if you have a calendar in your email programme or mobile phone, set a weekly reminder about your savings goals
- Make your goals specific – if you're saving for a Rolling Stones concert, calling your account One Night With Mick Jagger could encourage you to not miss a payment
- Go automatic –setting up automatic payments is a simple way to ensure you won't "forget" to save.