Page 36 - A Guide To Financial Health v2
P. 36
Chapter 05: Secret to success
Nonessential → Immediate
When people are in crisis, a plan that helps their future self—instead of
their current in-crisis self—is nonessential. An person can’t think about
increasing their 401(k) contribution when their immediate concern is
whether there's enough gas in the car to get to work and keep their job.
NONESSENTIAL EXAMPLES: 401(k) programs with auto enrollment, HSA/
FSA, financial literacy programs
Complex → Simple
Financially stressed people are already dealing with high cognitive load and
depleted resources; in this state, an overly complex solution is not useful.
Most of the tools available take precious time and energy to learn, which
reduces not only effectiveness but adoption in the first place. If a solution
breaks down the complexities of personal finances and presents them in a
simple, easy-to-understand way, people can make more progress.
COMPLEX EXAMPLES: savings programs, financial planning assistance
programs
