Automatic paycheck diversion into a separate savings account serves as a commitment device that motivates individuals to stick to savings goals by creating friction against reversing the setup.

Authors

• Person: Not available Organization: Verified Investing
  Behavioral Economics: Everyday Biases That Shape Money Choices

Sources

• Behavioral Economics: Everyday Biases That Shape Money Choices verifiedinvesting.com Verified Investing via serper

Referenced by nodes (1)

• savings account concept