Does making a promise to yourself lead to more savings?

Tax time is a golden opportunity to help low-income families build a much-needed savings cushion since, for millions of families, tax refunds are the largest cash infusion they receive in a given year.

This year, we partnered with Commonwealth, a national expert in tax-time savings research. Together we tested nudges and prizes aimed at getting families to save their refunds. By making a pledge to save, and direct depositing their refund into a bank account linked to SaverLife, 50 Savers would win $10,000 in cash prizes.

Along the way, and Commonwealth conducted interviews and surveys. We also measured changes to savings balances to see what impact the pledge, and the chance to win prizes, had on families’ use of their tax refunds.

To learn more, check out our August Big Data on Small Savings Brief.