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 […]
Tag: Russell
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. […]
The mediating role of assets in explaining hardship risk among households experiencing financial shocks
Material hardship is common among low- and moderate-income (LMI) households. Without liquid financial assets, these households are more likely to experience hardship in the face of financial shocks—large and unexpected expenses or dips in income. Authors hypothesized that shocks have a direct effect on hardship, and that liquid financial assets partially mediate the relationship between […]
Behavioral interventions to increase tax-time saving: Evidence from a national randomized trial
Too many households have too little set aside for emergencies, long-term goals, or retirement. This study presents evidence from the Refund to Savings Initiative, a large-scale randomized experiment testing interventions to increase household savings by encouraging filers to set aside a portion of their tax returns. Grounded in techniques of behavioral economics, these interventions are […]
Do tax-time savings deposits reduce hardship among low-income filers? A propensity score analysis
A lack of emergency savings renders low-income households vulnerable to material hardships resulting from unexpected expenses or loss of income. Having emergency savings helps these households respond to unexpected events, maintain consumption, and avoid high-cost credit products. Because many low-income households receive sizable federal tax refunds, tax time is an opportunity for these households to […]
Refund to Savings 2013: Comprehensive report on a large-scale tax-time saving program
Improving the financial security of low- and middle-income households through the savings of federal tax refunds is the central mission for the Refund to Savings (R2S) initiative. It is important to understand the context in which those households are trying to save and the methods of coping with contingencies when savings are not available. Such […]