A social norm nudge to save more

A TFI research project by Robert Dur, Dimitry Fleming, Marten van Garderen and Max van Lent
Posted on September 20, 2019

“A social norm nudge to save more: A field experiment at a retail bank” is one of the long-term research projects supported by the Think Forward Initiative.

Having a sufficient savings buffer is crucial in order to cope with unforeseen events and financial shocks. However, too few households save for a rainy day and this poor financial planning is a difficult habit to break. How can institutes and banks help people increase their savings buffer? Robert Dur (Erasmus University Rotterdam), Dimitry Fleming (ING Netherlands), Marten van Garderen (ING Netherlands), and Max van Lent (Leiden University) investigated how a social norm nudge (i.e. informing individuals how their behaviour differs from others’) could motivate people to save more money for a rainy day. In a field experiment the researchers tested the long and short term effects of a social norm nudge. They wanted to find out whether people with a low savings buffer would start saving more if they knew they saved less than others in their neighborhood.

Want to find out the results of this study and learn how the social norm nudge affects our saving behaviour? Download the full report below!

Click here for a summary of the report.