EARN.org plans to use behavioral science to motivate millions of Americans to save at tax time. To reach this goal, EARN is bringing together the fintech community to support the SaverLife Tax Pledge, a campaign to inspire Americans to save some of their refund.
EARN chose tax-time to launch this prize-linked savings campaign because tax season is an important savings moment. Nationally, 109 million households receive more than $304 billion in federal refunds. For many families, this is the biggest paycheck they receive all year, and the perfect moment to launch a savings habit and an emergency fund.
The SaverLife Tax Pledge is the most ambitious campaign by a nonprofit to promote saving at tax time. Because of EARN’s unique position as a nonprofit fintech, this movement can bring together the community around savings the way no one else can.
Through the SaverLife Tax Pledge, families will make a commitment to themselves by pledging to save some of their upcoming tax refund. Each week, 100 people instantly win by taking the pledge.
Last year, almost 10,000 people pledged to save $2.4M of their tax refunds with SaverLife. Based on our research, people who pledged to save were more likely to put and keep their refund in a savings account, compared to people who didn’t take the pledge. Recent research into the behavioral economics of savings reminders at tax time has shown that savings “anchors” increase the likelihood that a person will save part of their refund.
This year, EARN is launching the SaverLife Tax Pledge in October to reach families long before tax season begins – before big spending events like Black Friday and the holidays – with reminders about their investment in themselves between now and tax season.