Getting children to read is a proven way to educate and encourage critical thinking. This could pay off financially later in life. But turning reading into a habit can be tough. Behavioural nudges such as reminders and clear goals can make it easier to read more regularly.
Making financial decisions is hard. We never have all the information we need and even what we do know isn’t always correct. Remember there is a lot of noise in investment markets. It can pay to avoid reacting to what’s most attention grabbing and considering the bigger picture.
We should be wary of backfiring or negative outcomes of nudging. Sometimes our actions can have unintended consequences. For example, research finds that encouraging charity donations can actually have the opposite effect as people try harder to avoid the guilt of not giving.