Roll, S., Ferris, D., Bufe, S., & Kondratjeva, O. (2024). Designing savings accounts to promote asset building for individuals with disabilities: Experimental evidence on ABLE accounts. Journal of Disability Policy Studies. Advance online publication. https://doi.org/10.1177/10442073241304109
Category: Financial Behaviors
Emergency Savings among Persistently Poor Households: Evidence from a Field Experiment
Abstract Low-income households struggle to accumulate emergency savings, which increases economic vulnerability in the face of unexpected events like expensive car repairs. This vulnerability may be even greater among persistently low-income households, which might benefit most from building emergency savings using tax refunds. This study examined the effects of randomly assigned behavioral interventions that incorporated […]
Can behavioral nudges and incentives help lower-income households build emergency savings with tax refunds? Evidence from field and survey experiments
Abstract Tax refunds are an opportunity for lower-income households to accumulate emergency savings so they have cash on hand to cover expenses when income is insufficient. Our field experiments testing different behavioral interventions to encourage refund saving via online tax filing show small effect sizes (0.12–0.14) and a low aggregate savings rate (12%) that might […]
“Take my word for it”: Group Texts and Testimonials Enhance State and Federal Student Aid Applications
Abstract As the cost of college continues to rise, it has become increasingly important for students to apply for financial aid. However, many students are unaware of the benefits of the Free Application for Federal Student Aid (FAFSA). We launched a field experiment with a non-profit organization to explore how both informational- and testimonial-type text […]
Experimental Evidence on Consumption, Saving, and Family Formation Responses to Student Debt Forgiveness
The Earned Income Tax Credit (EITC) provides substantial financial support to low-income Universal basic income has gained renewed interest among policymakers and researchers in the U.S. While research indicates that unconditional cash transfers produce diverse benefits for households, public support lags in part due to the predicted unemployment and frivolous As policy-makers grapple with whether […]
Pinching pennies or money to burn? The role of grit in financial behaviors
We explore whether gritty individuals are better savers by virtue of their wealth or due to diligent choices that benefit their long-term economic health. We test these competing hypotheses by examining the ways in which grit influences how LMI tax filers report spending or saving their tax refund in the months following tax filing. We […]
Assessing the Short-Term Stability of Financial Well-Being in Low- and Moderate-Income Households
Much of the literature on household finance tends to focus on relatively objective measures of financial security (e.g., savings, income, financial knowledge), and there has been less research on measures of subjective financial well-being. This gap is due in part to the absence of a common understanding on defining and measuring subjective financial well-being. The Consumer Financial Protection Bureau […]
Financing Workers’ Health Care Cash Flow Needs: A Pilot Study
MedPut offers a way for employees to pay their out-of-pocket health care expenses through payroll deducted or Health Savings Account (HSA) payments capped at 5% of gross pay. Employees that use MedPut are much more likely to report having problems paying medical bills and to report putting off health care due to cost concerns. Nearly […]
Can pre-commitment increase savings deposits? Evidence from a tax-time field experiment
This experiment tested combinations of behavioral strategies to promote savings including (1) asking filers at the start of tax preparation to pre-commit to saving their refund, and (2) choice architecture manipulations that emphasized directly depositing their refund into savings accounts or savings bond purchases.
Household savings decisions in Israel’s child savings program: The role of demographic, financial, and intrinsic factors
This study examines how demographic, financial, and intrinsic personality characteristics predict household participation in Israel’s Child Development Account (CDA) program, the Savings for Every Child Program (SECP).
Using Financial Tips to Guide Debt Repayment: Experimental Evidence from Low- and Moderate-Income Tax Filers
In this paper, we explore the impact that slack resources and technology can have on individuals’ entrepreneurial aspirations.
Strategies for Debt Reduction: Comparing Financial Tips and Financial Counseling
Interest among employers is growing in Employee financial wellness programs (EFWPs), a new type of benefit to address financial stress among employees. EFWPs benefits include financial counseling, small-dollar loans, and savings programs that address employees’ non-retirement financial needs. Little evidence exists concerning the availability and use of and outcomes associated with EFWPs, especially among low- and moderate-income (LMI) workers who may be in greatest need of these benefits. We present findings concerning awareness and use of EFWPs from a national survey of LMI workers (N=16,650). Availability of different EFWP benefits ranged from 11 to 15% and over a third of workers were unaware of whether their employer offered an EFWP. Experiencing financial difficulties predicted both EFWP awareness and use suggesting that employers take time to assess employees’ specific financial challenges to select benefits. Yet use of EFWPs by LMI workers may suggest the need for better compensation and work conditions.
Tax-time saving and the earned income tax credit: results from online field and survey experiments
Tax refunds are an opportunity for Earned Income Tax Credit (EITC) recipients to build emergency savings. Randomly assigned behavioral interventions in 2015 and 2016 have statistically significant impacts on refund saving take-up and amounts among EITC recipients who filed their taxes online. From a survey experiment, we also find that EITC recipients have a 49 percent and 59 percent increased likelihood of deferring 20 percent of their refunds for six months when hypothetically offered 25 and 50 percent savings matches (p < .001), respectively. These findings can inform policy development related to encouraging emergency saving at tax time.
Promoting public retirement savings accounts during tax filing: Evidence from a field experiment
Many U.S. households—especially those with low- to moderate-incomes (LMI)—struggle to save for retirement. To address this issue, the Department of the Treasury launched myRA, a no-fee retirement account designed primarily to help people who lacked access to employer-sponsored plans build retirement savings. In this paper, we report findings from two myRA-focused field experiments, both of which were administered to well over 100,000 LMI online tax filers before and during the 2016 tax season. The first experiment involved sending one of three different myRA-focused email messages to tax filers immediately prior to tax season, and the second experiment involved incorporating myRA-focused messages and choice architecture directly into an online tax filing platform. Messages were chosen to address different barriers to retirement savings LMI households may face. We find that, though the general level of interest in myRA was very low in this population, interest and enrollment in myRA depends heavily on the way in which the benefits of the accounts are framed. Results from both experiments indicate that messages emphasizing the possibility of receiving a larger refund in the future were the most effective at increasing interest in myRA, while messages focused around the simplicity and ease of use of the accounts were less effective. We also conduct several subsample analyses to investigate the extent to which these effects differed by key household characteristics.
The impact of tax refund delays on the experience of hardship and unsecured debt
The Earned Income Tax Credit (EITC) provides substantial financial support to low-income workers, yet around a quarter of EITC payments are estimated to be erroneous or fraudulent. Beginning in 2017, the Protecting Americans from Tax Hikes Act of 2015 requires the Internal Revenue Service to spend additional time processing early EITC claims, delaying the issuance of tax refunds. Leveraging unique data, we investigate how delayed tax refunds affected the experience of hardship and unsecured debt among EITC recipients. We find that early filers experienced increased food insecurity relative to later filers after the implementation of the refund delay.
Messaging matters when it comes to COVID-19 economic impact payments
The way policymakers and financial capability practitioners communicate about the CARES economic impact payments and other current or future payments may help guide households to use these benefits in the way best suited to their financial situation. This is important because while some households may use the CARES payments to pay down debt and other households may be fortunate enough to be able to save their payments, others will need these payments to simply make ends meet.
What tax refunds tell us about how households might use economic impact payments
While economic impact payments are different than a tax refund, we can be fairly confident, based on this research, that in this moment of emergency, payments from CARES Act will be used on essential purchases. It is also possible households will allocate their economic impact payments to clear debt entirely or to make a minimum payment in order to keep some liquid assets in checking or savings.
The Impact of the Gig-Economy on Financial Hardship among Low-Income Families
New work arrangements coordinated by gig-economy platforms offer workers discretion over their work schedules at the expense of traditional worker protections. We empirically measure the impact of expanding access to gigs on worker welfare, with a focus on low-income families. We are interested in the likelihood that a family experiences hardship, meaning they fail to […]
Does Savings Affect Participation in the Gig Economy? Evidence from a Tax Refund Field Experiment
Bufe, S., Roll, S. P., Kondratjeva, O., Hardy, B., & Grinstein-Weiss, M. (2019). Does Savings Affect Participation in the Gig Economy? Evidence from a Tax Refund Field Experiment (SPI Working Paper 19-1). St. Louis, MO: Washington University, Social Policy Institute.
Assessing the short-term stability of financial well-being in low- and moderate-income households
Sun, S., Roll, S. P., Kondratjeva, O., Bufe, S., & Grinstein-Weiss, M. (2019, March). Assessing the Short-Term Stability of Financial Well-Being in Low- and Moderate-Income Households. (SPI Research Brief No. 19-01). St. Louis, MO: Washington University, Social Policy Institute.
How do changing financial circumstances relate to financial well-being? Evidence from a national survey
Bufe, S., Sun, S., Roll, S. P., Kondratjeva, O., & Grinstein-Weiss, M. (2019, March). How do Changing Financial Circumstances Relate to Financial Well-Being? Evidence from a National Survey. (SPI Research Brief No. 19-02). St. Louis, MO: Washington Univer¬sity, Social Policy Institute.
Financial well-being in low- and moderate-income households: How does it compare to the general population?
Sun, S., Kondratjeva, O., Roll, S. P., Despard, M., & Grinstein-Weiss, M. (2018, December). Financial well-being in low- and moderate-income households: How does it compare to the general population? (SPI Research Brief No. 18-03). St. Louis, MO: Washington Univer¬sity, Social Policy Institute.
Effects of a tax-time savings experiment on material and health care hardship among low-income filers
Material and health care hardship is common among households with low incomes and is associated with a host of adverse outcomes but can be mitigated with having savings. The authors assessed the effects of online tax-time savings interventions informed by behavioral economics on hardship among a sample of low- and moderate-income tax filers (N = 4,738). The […]
Encouraging Tax‐Time Savings With A Low‐Touch, Large‐Scale Intervention: Evidence From The Refund To Savings Experiment
Low‐ and moderate‐income households often struggle to save, but the annual tax refund represents a prime opportunity for these households to save toward their financial goals or build their emergency savings. This paper presents the results of a randomized, controlled experiment embedded in a free tax‐preparation product offered in 2013 to low‐ and moderate‐income households. […]
Effects of a randomized tax-time savings intervention on savings account ownership among low- and moderate-income households
Being unbanked makes it difficult for low and moderate-income (LMI) households to manage finances, save, and access credit. We assessed effects of an online tax-time savings intervention on savings account openings in the 6 months following tax filing among a sample of4,692 LMI tax filers. Treatment group participants had 60% greater odds of opening a […]
Financial shocks, liquid assets, and material hardship in low- and moderate-income households: Differences by race
Low- and moderate-income (LMI) households need financial assets to help cope with income and expenditure shocks. Prior research identifies racial differences in wealth and wealth effects. We examined whether these gaps and effects exist for liquid financial assets. Using group invariance tests in structural equation modeling, we assessed the relationship between financial shocks and material […]
Promoting Savings at Tax Time: Insights from Online and In-Person Tax Preparation Services
Davison, G., Frank-Miller, E., Roll, S. P., & Grinstein-Weiss, M. (2018). Promoting savings at tax time: Insights from online and in-person tax preparation services (CSD Research Report No. 18-33). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/pnr2-vf30
The State of State EITCs: An Overview and Their Implications for Low- and Moderate-Income Households
Davison, G., Roll, S. P., Taylor, S. H., & Grinstein-Weiss, M. (2018, January). The state of state EITCs: An overview and their implications for low- and moderate-income households (CSD Research Brief No. 18-04). St. Louis, MO: Washington University, Center for Social Development.
The Mediating Role of Assets in Explaining Hardship Risk Among Households Experiencing Financial Shocks
Despard, M. R., Guo, S., Grinstein-Weiss, M., Russell, B., Oliphant, J. E., & deRuyter, A. (2018). The mediating role of assets in explaining hardship risk among households experiencing financial shocks. Social Work Research, 42(3), 147–158. doi:10.1093/swr/svy012
Refund to Savings 2015–2016: Field Experiments to Promote Tax-Time Saving in Low- and Moderate-Income Households
Roll, S. P., Davison, G., Grinstein-Weiss, M., Despard, M. R., & Bufe, S. (2018). Refund to Savings 2015–2016: Field experiments to promote tax-time saving in low- and moderate-income households (CSD Research Report No. 18-28). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K72J6BD5
Responses to and Repercussions From Income Volatility in Low- and Moderate-Income Households: Results From a National Survey
Roll, S. P., Mitchell, D. S., Holub, K., Bufe, S., & Grinstein-Weiss, M. (2017, December). Responses to and repercussions from income volatility in low- and moderate-income households: Results from a national survey (Issue Brief). Washington, DC: Aspen Institute and Center for Social Development.
The Experience of Volatility in Low- and Moderate-Income Households: Results From a National Survey
Roll, S. P., Mitchell, D. S., Bufe, S., Lynne, G., & Grinstein-Weiss, M. (2017, October). The experience of volatility in low- and moderate-income households: Results from a national survey (Issue Brief). Washington, DC: Aspen Institute and Center for Social Development.
Effects of a Tax-Time Savings Experiment on Material and Health Care Hardship Among Low-Income Filers
Despard, M. R., Taylor, S. H., Ren, C., Russell, B. D., Grinstein-Weiss, M., & Raghavan, R. (2018). Effects of a tax-time savings experiment on material and health care hardship among low-income filers. Journal of Poverty, 22(1), 156–178. doi:10.1080/10875549.2017.1348431
The role of choice architecture in promoting saving at tax time: Evidence from a large-scale field experiment
Tax refunds give many low-and moderate-income (LMI) households a rare opportunity to save for unexpected expenses. We conducted three experiments aimed at increasing tax-time savings by LMI consumers. In a large field experiment, the most effective intervention increased the average savings deposits by about 50%. Delivered as people filed taxes online, this treatment consisted of […]
Home delinquency rates are lower among ACA Marketplace households: Evidence from a natural experiment
This brief uses administrative income tax data coupled with survey responses from roughly 5,000 households living near the poverty line to estimate how access to the Affordable Care Act’s health insurance Marketplaces have affected households’ experiences of extreme illiquidity, which is measured by delinquencies on home payments. To estimate this relationship, we exploit a natural […]
Workplace Financial Wellness Services: A Primer for Employers
Center for Social Development & Prosperity Now. (2017). Workplace financial wellness services: A primer for employers (CSD Toolkit No. 17-33). St. Louis, MO: Authors. https://doi.org/10.7936/K7G73D6S
Employee Financial Wellness Programs Project: Comprehensive Report of Findings
Frank-Miller, E., Covington, M., Despard, M. R., Hannon, G., & Grinstein-Weiss, M. (2017). Employee Financial Wellness Programs project: Comprehensive report of findings (CSD Research Report No. 17-31). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K7S46RFZ
Effects of a Tax-Time Savings Intervention on Use of Alternative Financial Services Among Lower-Income Households
Despard, M. R., Grinstein-Weiss, M., Ren, C., Guo, S., & Raghavan, R. (2017). Effects of a tax-time savings intervention on use of alternative financial services among lower-income households. Journal of Consumer Affairs, 51(2), 355–379. doi:10.1111/joca.12138
Employee Financial Wellness Programs: A Review of the Literature and Directions for Future Research
Hannon, G., Covington, M., Despard, M. R., Frank-Miller, E., & Grinstein-Weiss, M. (2017). Employee financial wellness programs: A review of the literature and directions for future research (CSD Working Paper No. 17-23). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K7WW7H5C
Behavioral Interventions to Increase Tax-Time Saving: Evidence From a National Randomized Trial
Grinstein-Weiss, M., Russell, B. D., Gale, W. G., Key, C., & Ariely, D. (2017). Behavioral interventions to increase tax-time saving: Evidence from a national randomized trial. Journal of Consumer Affairs, 51(1), 3–26. doi:10.1111/joca.12114
Assessing Retirement Needs and Interest in myRa: Findings From the Refund to Savings Initiative
Roll, S. P., Oliphant, J. E., Perantie, D. C., Grinstein-Weiss, M., & Davison, G. (2017). Assessing retirement needs and interest in myRA: Findings from the Refund to Savings Initiative (CSD Research Report No. 17-16). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K74749DH
Coping With a Crisis: Financial Resources Available to Low- and Moderate-Income Households in Emergencies
Perantie, D. C., Roll, S. P., Oliphant, J. E., Guo, S., & Grinstein-Weiss, M. (2017, February). Coping with a crisis: Financial resources available to low- and moderate-income households in emergencies (CSD Research Brief No. 17-11). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K7M32V90
The Role of Choice Architecture in Promoting Saving at Tax Time: Evidence From a Large-Scale Field Experiment
Grinstein-Weiss, M., Cryder, C., Despard, M. R., Perantie, D. C., Oliphant, J. E., & Ariely, D. (2017). The role of choice architecture in promoting saving at tax time: Evidence from a large-scale field experiment (CSD Working Paper No. 17-29). St. Louis, MO: Washington University, Center for Social Development.
Home Delinquency Rates Are Lower Among ACA Marketplace Households: Evidence From a Natural Experiment
Gallagher, E. A., Gopalan, R., Grinstein-Weiss, M., Roll, S. P., & Davison, G. ( 2017, January). Home delinquency rates are lower among ACA Marketplace households: Evidence from a natural experiment (CSD Research Brief No. 17-01). St. Louis, MO: Washington University, Center for Social Development. https://doi.org/10.7936/K72B8XJP
Do Tax-Time Savings Deposits Reduce Hardship Among Low-Income Filers? A Propensity Score Analysis
Grinstein-Weiss, M., Despard, M. R., Guo, S., Russell, B., Key, C., & Raghavan, R. (2016). Do tax-time savings deposits reduce hardship among low-income filers? A propensity score analysis. Journal of the Society for Social Work and Research, 7(4), 707–728. doi:10.1086/689357
Financial Anxiety in Low- and Moderate-Income Households: Findings From the Household Financial Survey
Roll, S. P., Taylor, S. H., & Grinstein-Weiss, M. (2016, October). Financial anxiety in low- and moderate-income households: Findings from the Household Financial Survey (CSD Research Brief No. 16-42). St. Louis, MO: Washington University, Center for Social Development.
Student Debt and Hardship: Evidence From a Large Sample of Low- and Moderate-Income Households
Despard, M. R., Perantie, D. C., Taylor, S. H., Grinstein-Weiss, M., Friedline, T., & Raghavan, R. (2016). Student debt and hardship: Evidence from a large sample of low- and moderate-income households. Children and Youth Services Review, 70, 8–18. doi:10.1016/j.childyouth.2016.09.001
Leveraging Tax Time to Build Financial Capability: Research Evidence and Policy Directions
Covington, M., Oliphant, J. E., & Grinstein-Weiss, M. (2016). Leveraging tax time to build financial capability: Research evidence and policy directions (CSD Conference Proceeding No. 16-27). St. Louis, MO: Washington University, Center for Social Development.
The Role of Health Insurance in the Financial Lives of Low- and Moderate-Income Households
Despard, M. R., Roll, S. P., Perantie, D. C., Oliphant, J. E., & Grinstein-Weiss, M. (2016, July). The role of health insurance in the financial lives of low- and moderate-income households (CSD Research Brief No. 16-26). St. Louis, MO: Washington University, Center for Social Development.
Racial Disparities in Student Debt: Evidence From the Refund to Savings Initiative
Taylor, S. H., Perantie, D. C., Kantor, N., Grinstein-Weiss, M., Guo, S., & Raghavan, R. (2016, May). Racial disparities in student debt: Evidence from the Refund to Savings Initiative (CSD Research Brief No. 16-14). St. Louis, MO: Washington University, Center for Social Development.