Improving financial behaviors through nudges

Abstract

Behavioral economics and its concept of nudges are rapidly influencing the design of community-basedfinancial education programs. This article addresses why nudges can be useful tools for effective financialeducation, explains the different types of nudges introduced by behavioral economics research, presentsevidence of their effectiveness from the field, and suggests ways Extension professionals can use theseinsights in their work. A particular focus is on nudges that are effective for personal financial behaviors.