Shlomo Benartzi: Saving for tomorrow, tomorrow

The video discusses the Save More Tomorrow program, designed by Richard Thaler and the speaker, to address common behavioral finance challenges in saving. It highlights issues like present bias, inertia, and loss aversion, and how these affect financial decisions. The program encourages employees to commit to saving more in the future, particularly when they receive pay raises, thus overcoming immediate gratification and effort-related obstacles. The success of the program is demonstrated through increased savings rates among participants.

What new insight or understanding did you gain from this video?