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

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  • Banerjee, Abhijit
  • Claudia, Martínez A.
  • Puentes, Esteban

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.

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  • Banerjee, Abhijit & Claudia, Martínez A. & Puentes, Esteban, 2025. "Better strategies for saving more: Evidence from three interventions in Chile," Journal of Development Economics, Elsevier, vol. 173(C).
    • Handle: RePEc:eee:deveco:v:173:y:2025:i:c:s0304387824001548
    DOI: 10.1016/j.jdeveco.2024.103405
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    Cited by:

    1. Wicker, Till & Dalton, Patricio & van Soest, Daan, 2025. "Mental Accounting and Cash Transfers : Experimental Evidence from a Humanitarian Setting," Discussion Paper 2025-006, Tilburg University, Center for Economic Research.
    2. Wicker, Till & Dalton, Patricio & van Soest, Daan, 2025. "Mental Accounting and Cash Transfers : Experimental Evidence from a Humanitarian Setting," Other publications TiSEM a92dc757-d6b5-4802-8639-c, Tilburg University, School of Economics and Management.

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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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