Lesson 1: Nudges are tiny hints or changes, which push you in one direction, but leave all options open.
Lesson 2: A default is a very powerful nudge, as it requires you to actively object it for it not to work.
“At scale, companies can use this by automatically enrolling their employees in their matching-retirement plan programs, unless they explicitly object to participating. This helps a lot of lazy people save for retirement because they would never have enrolled if they’d had to actively do it themselves.”
“Similarly, gyms and magazines abuse this by automatically renewing your subscription, unless you cancel it. Again, nudges can be used both ways.”
Lesson 3: States and other large institutions can use nudges to improve societies and countries as a whole.
“if the majority of its members make good decisions, the welfare of the state grows. “
“the dollar-a-day program, which gives teenage mothers $1 each day they don’t get pregnant again. $365 may sound like a lot but is much cheaper than having to take care of a newborn or trying to relocate it to a good family.”
How can we use the nudge method to make small changes in financial literacy that add up to a more informed whole?
