Eating that extra slice of pizza, an online shopping spree, or ignoring the “check engine” light on our dashboard: human beings do not always make decisions in our own best interest. We often focus on immediate emotions (deprivation, desire for new stuff, fear of car repair bill) and fail to consider long-term consequences (weight gain, credit card debt, lack of transportation).
The study of why we make these irrational decisions is called behavioral economics. It is especially instructive when figuring out ways to engage employees in their health savings accounts (HSAs). After all, 4 in 10 of those with access to an HSA aren’t taking advantage of them, while only 25 percent of employees consider medical costs and saving in a HSA as a top financial priority.
Behavioral economics looks at the social, emotional and cultural factors that influence our decisions—which, it turns out, are often impulsive and subjective. When it comes to a complex topic such as out-of-pocket spending for health care, we are even less likely to make a rational decision, such as fully funding an HSA, because we:
The Bend HSA learns from the employees’ behaviors and patterns and, through the Bend Advisor, offers actionable suggestions to help overcome savings obstacles and nudge employees toward more rational, healthier decisions.
The Bend Advisor drives this stronger HSA engagement in the following ways:
When saving for health care, it’s often too little, too late. However, by creating simple and intuitive choices, nudge messaging, and a path of least resistance, The Bend Advisor can influence positive decisions and greater employee HSA engagement. As engagement builds, so will employees’ financial literacy, account balances and confidence in the HSA.