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There is clearly potential for behavioural approaches to be an effective complement to MyBnk’s existing set of tools and programmes. However, you should be aware that there are potential methodological and ethical issues with their use. MyBnk has undertaken a review of these, which can be read below but this will not be an assessed part of the module.There is clearly potential for behavioural approaches to be an effective complement to MyBnk’s existing set of tools and programmes. However, you should be aware that there are potential methodological and ethical issues with their use. MyBnk has undertaken a review of these, which can be read below but this will not be an assessed part of the module.
While the insights from behavioural approaches are both clear and exciting, there are some serious limitations on their use.
This is due in part to the relatively new nature of the field. As yet there has been no consensus over how to model these behavioural insights or under what conditions they can be guaranteed to work, especially compared to other subject areas such as traditional economics.
To summarise, the above issues means that in general behavioural research is often difficult to apply, and as field has some way to go before it can reliably be consulted in policy making. As such, for now organisations such as MyBnk would almost always have to research their own behavioural approaches within their own area.
Ethical issues. – It also worth noting in the broader sense that behavioural change is controversial for a variety of political and ethical reasons.
Responses
· The clearest response to these concerns is simply that there is no choice but to think about behavioural aspects of programs, as they will have some behavioural effects regardless. Except in some limited circumstance there is no such thing as a behaviourally neutral policy.
· There are real benefits to be gained sometimes for relatively little cost. Making organ donor lists opt out for example would likely save many lives, and could easily be changed.
· These issues are not unique to behavioural approaches, it is just the recent development of the field that can make them seem more pressing.
Ethics and MyBnk
It is not impossible that MyBnk will find itself challenged on these issues. There could be challenges on with regards to who MyBnk targets with its programs, how it does so, and the importance of the end goals.
Who?
- MyBnk’s target audience spans two distinct groupings which generally have very different statuses with regards to outside intervention, Children and Young adults. In the first case the principle of intervention is already accepted, as it is inherent in the notion of a schooling system. MyBnk may still face questions here though, such as why should programme take up schools time? Or, shouldn’t financial education be left to parents? The case of young adults is perhaps more difficult however, as we tend to take leaving school as the point at which individuals become fully responsible both for their decisions but also their understanding. It could be challenged that individuals need to make mistakes and make their own decisions at this age? In Particular, why should they be influenced by a charity that receives much of its funding from large financial institutions?
- One way of responding is too look for similar situations where such intervention is considered acceptable. For example, no one doubts that charities which seek to prevent heart disease such as the British heart foundation can do so by educating young people, why would financial health be a different issue? (This can be pressed further if the link between financial health and mental health, and even physical health, is made explicit).
- Alternatively the current failures of the education system can be pointed at, as it currently does not have such education on the curriculum. In a context where young people often do struggle to find jobs and have high levels of personal debt such ‘real world skills’ appear to be lacking.
- It seems unfair to argue young people in this context ought to learn from their parents and their own mistakes. Part of the issue is parents often have poor financial knowledge themselves, and not acting can result in a dangerous spiral. In addition, given the rapidity of changes that a young person goes through in the years 18-24, and the lack of control they often have over this process notions of responsibility seem remote. There is a sense in which you have to reach a stable potion capable of your own autonomy before you can said to be ‘responsible’, and young people can often be very far from this ideal.
- In addition, the disadvantages arising from certain backgrounds in this area can lead to large inequalities over time.
How?
- As mentioned earlier, behavioural techniques can be controversial and it is worth considering how they can be spun uncharitably. Who would want to donate to a charity that ‘uses psychological techniques to influence children’s behaviour?’
- Again a companion in guilt approach may be an effective response. The advertising industry for example appears to have no qualms with using behavioural messaging to target children and young adults. Can MyBnk not be a beneficial counter to this excessive attempt to make individuals spend? (Politicians also do this kind of thing all the time.)
- To some extent the idea that an education program could not be behavioural is a misconception, as there is not actually neutral way of presenting information in most cases.
- With regards to MyBnk, it would simply be a potentially more efficient method of enabling children to learn.
- Actual potential examples are pretty innocuous and in reality are borderline common practise anyway. Buddy systems and tailoring messages to particular areas are already widespread practises. Would dressing up in a suit to impress at work really be considered a technique to influence behaviour?
- Realistically the risk of children being influenced in a malign fashion by accident, which underpins some of the uncertainty, is very low.
- MAS report 2016 – one of the key finds of the report was that children do have a fairly good understanding of the importance of money and the need for savings. The issue is they do not act in a way consistent with this behaviour. Therefore this there is a need to look at schemes that do not focus solely on knowledge but attempt to change behaviour too.
Why? (Goal)
Key messages that MyBnk trainers should be embedding into their language are:
- The choices available to you
- The significance of the small decisions that we make every day
- The awareness of your behaviours
- You have the power to create your own destiny
- Taking active control of your money is a good thing
- Developing entrepreneurial skills can benefit yourself, your future career prospects and your community
- It’s not about how much money you have, it’s what you do with it that counts
MyBnk does not tell people how to spend their money and what it is a good idea to spend money on. Rather, it enables individuals to make better informed decisions and help them spend money on what they wish. Therefore MyBnk’s programs cannot be dismissed as, telling young adults what to do.
The Money Advice Service also has some detail of the extent to which young people find themselves in difficulties with regards to savings, and the extent that they have their lives hindered by lack of financial knowledge.
Significance of debt on mental health and long term prospects with regards to mortgages and future job opportunities, and as such the applicability of plan that helps individuals manage their situation.
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