State of Telecom Industry in Pakistan

A lot of people tend to forget to take care of important things because of their busy schedules. Simple tools such as text message reminders can help with things like saving money on a regular basis.

A new study by a group of economists looking at why people save money found that simply sending out cellphone reminders increased savings balances by 6%.

The study challenges the idea that people don’t have enough self-control to save. Instead, the problem may be that they just aren’t paying attention, said Dartmouth University economics professor Jonathan Zinman, one of the study’s four authors.

“Savings isn’t at the top of their mind,” said Mr. Zinman. “Basically all we did was remind them.”

While a 6% increase may not send bank-account balances soaring, nudging up the savings rate has been historically difficult—until the latest recession.

Classroom financial education hasn’t proven particularly effective, said Jennifer Tescher, director of the Center for Financial Services Innovation. But online and cellphone platforms could deliver messages with greater impact.

“This is an idea we think has tremendous potential,” she said.

Via WSJ