Encouraging Savings Among the Very Poor

Analyzing a study in Kibera, Kenya, focused on promoting savings habits among individuals living in poverty to avoid financial crises. The chapter explores various methods tested, including reminders, matching funds, and loss aversion techniques, with surprising results favoring simple strategies like using physical reminders. The conversation expands to discuss cultural differences in spending, the importance of making saving and insurance more visible, and the impact of mental accounting on financial decisions.