I'm all for empowerment and education, but the empirical evidence is that it doesn't work. That's why I say make it easy.
Richard ThalerIf rather than setting the minimum balance as the lowest possible amount, so we keep people in debt for as long as possible, we raise the minimum payment and encourage people to pay off their credit cards, we're going to make less money, but we're going to have costumers that are more solvent.
Richard ThalerThe reason is they failed to learned the primary lesson we should have learned from when Long Term Capital Management went belly up ten years ago. That is, investments that seem uncorrelated can be correlated simply because we're interested in it.
Richard ThalerIf people just put away what's left at the end of the month, that's a recipe for failure.
Richard Thaler