Austria and Germany are very similar countries. However, in Germany less than 12% of people are registered organ donors and in Austria over 99% of people are registered. So what accounts for the difference? It turns out that in Germany, when you get your driver's license, there is a box you have to check if you want to be an organ donor. In Austria there is a box you have to check in if you do NOT want to be an organ donor. In both situations you’re faced with the same two options, but what happens by default when you don’t check the box makes all the difference. When faced with a decision we’re a little unsure of, most humans have a tendency to just go with the flow, or in other words, the default option. Remarkably, this means the way the organ donation question is framed on the DMV form, single handedly, has the biggest influence on how many peoples lives will be saved through organ donations.
When it comes to managing your money, what would happen by default if you stopped paying attention to your finances? If you’re like most people, things would fall apart. To take advantage of default bias, you’d want to set things up so that wherever possible the thing that automatically happens when you do nothing, is the option that is most likely to be the biggest benefit to you. For example, if you put your bills on autopay and then do nothing, by default your bills would get paid instead of being missed. The less action steps you have to take to arrive at a successful outcome the better.
One unique way SpendPal is designed to leverage Default Bias is by having users put their Spending Categories in a priority order, most important Categories on top and lower priorities on the bottom. Once your Categories are prioritized, SpendPal can automatically distribute your money into your Categories for you whenever a paycheck comes in. By eliminating the need for you to manually allocate your money into Categories, we take away a potential failure point. Even if your paycheck is a little short, or you get an extra bonus, the funding rules will make sure your money is automatically allocated first to the things most important to you. That’s one less thing you have to worry about so you can spend more time enjoying life.