Project dates: 01/02/2020 - Ongoing
This project will use experimental methods and build on expertise and partnerships at BEST to deliver GetReady, a tool for training financial preparedness for future needs. Played to maximize welfare points over forty hypothetical years until retirement, GetReady will elicit repeated savings and insurance decisions in a virtual environment of uncertain market outcomes (returns to investment) and nonmarket events (costly sickness or accident) as well as simulated experiences and personally targeted interventions.
Why is this important?
Financial shock due to illness and accident can destabilize those who are not financially empowered. However, the safety afforded by savings and insurance is constrained not only by financial resource scarcity but also by consequent cognitive resource scarcity (e.g., lack of time, mental energy, knowledge or experience).
What we aim to do
We will develop GetReady in three stages that will produce cutting-edge research output:
- Thought process manipulations (such as time-pressure) will isolate the effects of cognitive resource scarcity on insurance demand and retirement savings.
- Experimental comparison of treatments such as cognitive boosts (simulated experience of compound interest, educational feedback) and expert guidance (personalized peer advice) will identify the most effective interventions against cognitive resource scarcity.
- Interventions, simulations and research findings will be incorporated in GetReady software via industry links. Field experiment on retirement and insurance account holders will validate impact of GetReady on actual financial decisions, allowing its widespread adaption by financial institutions, educational organizations and government bodies.
For more information about this project, please contact: firstname.lastname@example.org
Funding / Grants
- Think Forward Initiative (2020 - 2022)
Other Team Members
- Dr. Onurcan Yilmaz (Kadir Has University’s Moral Intuitions Lab)