Effective financial literacy interventions are about changing people’s behaviour, so they get a better outcome. We know that just increasing people’s knowledge (on its own) is rarely enough to change people’s behaviour in the long term.
Here are seven tips for a recent publication by the Center for Financial Inclusion.
Seven Behaviorally-Informed Practices for Effective Financial Capability Interventions
- Teachable Moments. Reach consumers when they are making financial decisions.
- Learning by Doing. Let consumers practice using products.
- Nudges, Reminders, and Default Options. Timely reminders and default options support good habits.
- Rules of Thumb (Heuristics). Mental short cuts help turn learning into habit.
- Make It Fun. Games and humor aid learning and retention.
- Customize It. Tailor advice to an individual’s specific financial situation.
- Make it Social. Leverage the influence of peers and culture.
You can see the full publication here: www.centerforfinancialinclusion.org/publications-a-resources/browse-publications/724