Author

Juan Saavedra

Additional Authors

Rodriguez Orgales, Catherine

Publication Date

5-26-2016

Summary

In this working paper, we report on a field experiment articulating financial information via cellphone text messages and financial decisions among low-income youth in Colombia. For twelve months, youth accountholders are randomly assigned to receive either: (a) monthly financial education messages, (b) monthly savings reminders, (c) semimonthly reminders, or (d) control. After 12 months, account balances in monthly and semimonthly reminders groups increase by 28% and 43%, respectively, relative to controls. Financial education messages do not increase balances. Over two thirds of balance increases in reminder groups are net savings. Savings effects of reminders last eight months after youth stop receiving messages.

Document Type

Working Paper

Category

Child and Youth Development

Subarea

Global Asset Building

Original Citation

Rodríguez, C., & Saavedra, J. E. (2016). Nudging youth to develop savings habits: Experimental evidence using SMS messages (CSD Working Paper No. 16-19). St. Louis, MO: Washington University, Center for Social Development.

DOI:

https://doi.org/10.7936/K7QV3M1D

Project

YouthSave

Keywords

financial education, youth, savings

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