Paper
Money Resolutions, a Sketchbook
Exploring the underlying logic for how money resolutions are made
34 pages
By understanding how and why the poor manage their money, financial service providers can in turn create more meaningful, useful solutions that will be taken up more broadly. Building on these six ways poor customers manage their money is a starting point. (See Money Resolutions, Digital Simulations, to learn how financial decision-making practices commonly employed by poor people could be supported through a digital financial service platform.)
This paper identifies and explores the following six behaviors that commonly underpin people’s money management practices:
1. Income Shaping - How the poor gain financial predictability through income regularity
2. Liquidity Farming - How the poor gain financial predictability through insurance for surprise and unplanned expenses
3. Spending Routines - How the poor gain financial predictability through predictable expenses
4. Spending Triage - How the poor gain financial predictability through investment
5. Animating Money - How the poor gain financial predictability through designated money
6. Concentrating Goals - How the poor gain financial predictability through goal-setting
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