Behavior Changes and Prize-Linked Savings: Managing Financial Volatility

Behavior Changes and Prize-Linked Savings: Managing Financial Volatility

Consumers from across the income spectrum are faced with the challenge of uncertain income and expenses, but for low- and moderate-income consumers with limited access to financial products and services these challenges are magnified. Commonwealth undertook a year-long study with eight Greensboro Municipal Credit Union consumers in North Carolina, meeting with these individuals to gain a deeper understanding of their financial lives. Through in-depth interviews and surveys, Commonwealth compiled a rich trove of information and insights related to a number of different aspects of consumer's financial lives that are described in this paper. This report focuses on three of the study's participants and their unique experiences with financial volatility.

Get this Publication
Please help us reduce spam by entering the characters pictured below.

Key Takeaway

Prize-Linked Savings offers a valuable solution for making a savings buffer easier to achieve, which is crucial for households with high financial volatility.

Key Learnings

  • Consumers may have the desire to begin a savings habit, but are held back by a feeling that it is either too difficult or out of reach.

  • Individuals who actively used Save to Win accounts experienced positive changes in their ability to manage financial volatility.

Key Findings

  • Besides being a vehicle for storing money, a savings account should also be fun and engaging to encourage use and bring excitement to an otherwise difficult activity.

  • Products with a low barrier to entry provide a better experience for a wider range of consumers.

Challenges

Related Challenges

Solutions

Related Solutions

Projects

Related Projects