{"id":12202,"date":"2020-11-24T09:00:00","date_gmt":"2020-11-24T09:00:00","guid":{"rendered":"https:\/\/www.dailypay.com\/?p=12202"},"modified":"2023-11-02T11:15:49","modified_gmt":"2023-11-02T15:15:49","slug":"dailypay-supports-positive-financial-behavior","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/dailypay-supports-positive-financial-behavior\/","title":{"rendered":"How DailyPay Applications Support Positive Financial Behavior"},"content":{"rendered":"\n

Decisions, decisions. How people decide on what they do with their pay and other earnings when they receive the money can foretell how secure financially they will be in the future. The options that are available, even to those living paycheck-to-paycheck, and how we select from them, were the subject of a recent Source by DailyPay podcast<\/a>. <\/p>\n\n\n\n

To help us make these key financial decisions, we need to leverage our ability to mentally account for where money is to be spent and determine the category it should be put in, according to Jason Fichtner, a fellow at the Bipartisan Policy Center and associate director of the Master of International Economics and Finance Program at the Johns Hopkins School of Advanced International Studies. <\/p>\n\n\n\n

Fichtner said that our capacity to do this is now enhanced with technology that provides \u201ca picture that\u2019s shown on the internet or through an app and DailyPay\u201d that says \u201chere\u2019s how much you\u2019ve allocated or budgeted in each category.\u201d <\/p>\n\n\n\n

Then there are tools that can be applied to help people save, according to Fichtner. Most people say they want to save, he said. \u201cBut they might find it difficult. And so we try to help them by nudging.\u201d <\/p>\n\n\n\n

What\u2019s nudging?<\/p>\n\n\n\n

A \u201cnudge\u201d could be as simple as an automatic enrollment in a retirement savings plan, Fichtner said. A nudge is not a mandate. \u201cA nudge defaults you in but gives you the option of saying no.\u201d<\/p>\n\n\n\n

It\u2019s \u201chow something like DailyPay can work very well too if you\u2019re going to show somebody, \u2018how about taking a dollar of your earnings today and putting it into a rainy day fund, a savings account.\u2019\u201d<\/p>\n\n\n\n

Fichtner provided an example of how people can mentally frame this decision-making process:<\/p>\n\n\n\n

If you tell somebody, \u201cYou need to save $350 a year,\u201d a lot of people right now might say, \u201c$350, I can\u2019t do that. There\u2019s no way. That\u2019s just too much of a burden. That\u2019s too much of a barrier. I can\u2019t save $350 a year.\u201d And framing it that way makes it sound very difficult. <\/p>\n\n\n\n

But if instead you frame it this way, \u201cCould you save one dollar a day?\u201d Your goal is not now $350 a year, your goal is now one dollar a day. Most people say, \u201cA dollar a day, sure, I can do that.\u201d Well, if you do a dollar a day, then all of a sudden, after one year, you\u2019ve got your $350.<\/p>\n\n\n\n

\u201cI think that framing can be very helpful and that\u2019s where something like DailyPay can really help people make a difference in their financial lives and security,\u201d Fichtner said.<\/p>\n\n\n\n

Further, regarding tools to use to help build savings, Fichtner said, \u201cif you\u2019re doing something on top that rounds up, over time, that really, really adds up. And it\u2019s these little things that can make a difference. And again, DailyPay has three options to save as well. There\u2019s the auto save, the direct save and the roundup save.\u201d <\/p>\n\n\n\n

\u201cWhat\u2019s important to realize is that financial information, the ability to see it clearly in a cognizant simple way, can help you make better informed decisions,\u201d he said. <\/p>\n\n\n\n

When questioned about the use of payday lenders despite their predatory nature, Fichtner said that \u201cinstead of trying to outlaw, I just think we should have better market competition and create better products. And that\u2019s where something like DailyPay comes in.\u201d <\/p>\n\n\n\n

\u201cIt\u2019s just getting the word out that there are better products available for people and showing them that there is a better option than a payday lender,\u201d Fichtner said.<\/p>\n\n\n\n

You can access the full podcast and subscribe to other Source by DailyPay episodes here<\/a>. <\/p>\n\n\n\n

DailyPay is the recognized gold standard for on-demand pay delivery, sometimes called earned-wage access, and also partners with the Bipartisan Policy Center <\/a>to help bring more awareness of policies that can assist Americans in building financial security.<\/p>\n\n\n\n

For additional resources on this topic, see:<\/p>\n\n\n\n