Publications

November 2013
Article

Simplification and Saving

By: John Beshears, James J. Choi, David Laibson and Brigitte C. Madrian

The daunting complexity of important financial decisions can lead to procrastination. We evaluate a low-cost intervention that substantially simplifies the retirement savings plan participation decision. Individuals received an opportunity to enroll in a retirement... View Details

Keywords: Retirement Savings; Simplification; Procrastination; Behavioral Economics; Saving; Motivation and Incentives; Retirement

May 2022
Article

Can Gambling Increase Savings? Empirical Evidence on Prize-Linked Savings Accounts

By: Shawn A. Cole, Benjamin Iverson and Peter Tufano

This paper studies the adoption and impact of prize-linked savings (PLS) accounts, which offer lottery-like payouts to individual account holders in lieu of interest. Using microlevel data from a bank in South Africa, we show that PLS is attractive to a broad group of... View Details

Keywords: Household Finance; Banking; Savings; Prize-linked Savings; Lottery; Household; Personal Finance; Saving; Banks and Banking

Purchase

Article

Savings in Transnational Households: A Field Experiment Among Migrants from El Salvador

By: Nava Ashraf, Diego Aycinena, Claudia Martinez A. and Dean Yang

While remittance flows to developing countries are very large, it is unknown whether migrants desire more control over how remittances are used. This research uses a randomized field experiment to investigate the importance of migrant control over the use of... View Details

Keywords: Migration; Remittances; Intrahousehold Allocation; Savings; Saving; Residency; Banks and Banking; Banking Industry; El Salvador; United States

Article

Using Fresh Starts to Nudge Increased Retirement Savings

By: John Beshears, Hengchen Dai, Katherine L. Milkman and Shlomo Benartzi

We conducted a field experiment to study the effect of framing future moments in time as new beginnings (or “fresh starts”). University employees (N=6,082) received mailings with an opportunity to choose between increasing their contributions to a savings plan... View Details

Keywords: Choice Architecture; Randomized Field Experiment; Savings; New Beginning; Fresh Start; Saving; Retirement; Behavior

2014
Working Paper

Savings in Transnational Households: A Field Experiment Among Migrants from El Salvador

By: Nava Ashraf, Diego Aycinena, Claudia Martinez A. and Dean Yang

While remittance flows to developing countries are very large, it is unknown whether migrants desire more control over how remittances are used. This research uses a randomized field experiment to investigate the importance of migrant control over the use of... View Details

Keywords: Migration; Remittances; Intrahousehold Allocation; Savings; Immigration; Diasporas; International Finance; El Salvador

05 Jul 2006
Working Paper Summaries

Reinventing Savings Bonds

Keywords: by Peter Tufano & Daniel Schneider; Financial Services

Research Summary

Savings among microentrepreneurs

Poverty is often characterized not only by low average income, but also by highly variable income and expenditures, and by a lack of access to insurance services that can help smooth consumption. While commitment devices such as defaults and direct deposits from... View Details

2008
Working Paper

Just Keep My Money! Supporting Tax-time Savings with U.S. Savings Bonds

By: Peter Tufano

This paper reports the results of a 2007 experiment testing if specific process simplification can foster increased take-up rates for savings products, particularly by low-to-moderate income (LMI) households. Tax refund recipients at certain H&R Block tax preparation... View Details

Keywords: Household; Income; Bonds; Investment; Personal Finance; Saving; Taxation; United States

2025
Chapter

Employer-Based Short-Term Savings Accounts

By: Sarah Holmes Berk, John Beshears, Jay Garg, James J. Choi and David Laibson

We study the introduction of a choice architecture design intended to increase short-term savings among employees at five U.K. firms. Employees were offered the opportunity to opt into a payroll deduction program that auto-deposits funds from each paycheck into a... View Details

Keywords: Personal Finance; Compensation and Benefits; Well-being; Behavior; Investment Funds; Employees; United Kingdom

2024
Working Paper

Employer-Based Short-Term Savings Accounts

By: Sarah Holmes Berk, John Beshears, Jay Garg, James J. Choi and David Laibson

We study the introduction of a choice architecture design intended to increase short-term savings among employees at five U.K. firms. Employees were offered the opportunity to opt into a payroll deduction program that auto-deposits funds from each paycheck into a... View Details

Keywords: Behavior; Personal Finance; Investment Funds; Employees; Saving; United Kingdom

05 Jul 2006
Research & Ideas

Reinventing the Dowdy Savings Bond

In the family of investment products, a U.S. savings bond might be cast as boring old Uncle Ned, snoozing away in the corner after dinner. There's nothing wrong with that—but HBS professor Peter Tufano envisions a more meaningful role for... View Details

Keywords: by Julia Hanna; Banking; Financial Services

23 Jun 2008
Research & Ideas

Innovative Ways to Encourage Personal Savings

Putting together the money for everything from a short-term emergency to retirement is hard enough, a challenge that low- and moderate-income families endure every day. Yet as HBS professor Peter Tufano describes, new and old products targeted at people who haven't... View Details

Keywords: by Martha Lagace; Financial Services

01 Sep 2020
News

Saving Grace

major pension providers where his savings were stowed. It was hard to pry even basic information from them, he says. Instead they channeled his calls through financial advisors, who pitched costly services. The more he prodded for... View Details

Keywords: Jen McFarland Flint

April 2005
Case

Saving Disney

At a March 2004 annual shareholder meeting, 45% of Walt Disney Co.'s shareholders withheld their support from CEO and Chairman Michael Eisner, producing a large no-confidence vote in the company's leader. The company had struggled financially in recent years and the... View Details

Keywords: Governing and Advisory Boards; Personal Development and Career; Corporate Governance; Entertainment and Recreation Industry

Educators

Purchase

15 Feb 2007
Research & Ideas

Helping Low-Income Families Save More

Podcast with: Peter TufanoInterviewer: James AisnerRunning Time: 18 min., 55 sec. View Details

Keywords: by Jim Aisner; Banking; Financial Services

January 2021
Case

The FIRE Savings Calculator

By: Michael Parzen and Paul Hamilton

This case follows Carol Muñoz, a member of the Financial Independence, Retire Early (FIRE) lifestyle movement. At the age of 45, Carol is considering retiring and living off the $1 million she has accumulated. Using Monte Carlo simulation, Carol forecasts the... View Details

Keywords: Analysis; Forecasting and Prediction; Financial Strategy; Investment Portfolio; Investment Return; Personal Finance; Saving; Risk and Uncertainty; Diversification; Theory; Personal Development and Career; Financial Services Industry