Better strategies for saving more: Evidence from three interventions in Chile

Abhijit Banerjee, Martínez A. Claudia and Esteban Puentes

Journal of Development Economics, 2025, vol. 173, issue C

Abstract: Individual behavioral biases can affect savings behavior. We conduct an experiment to evaluate different strategies to increase savings. We compare an automatic savings plan (or default rule), monthly reminders, and a rule-of-thumb savings package that appeals to careful spending. We find that rule-of-thumb and default rules can increase savings for one year after the intervention. In contrast, reminders can reduce account balances and debt levels. The increase in savings under the default rule is produced by a (mechanical) increase in deposits, but savings is later decreased by an increase in withdrawals.

JEL-codes: D14 O12 (search for similar items in EconPapers)
Date: 2025
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Working Paper: Better Strategies for Saving More Evidence from Three Interventions in Chile (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:173:y:2025:i:c:s0304387824001548

DOI: 10.1016/j.jdeveco.2024.103405

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