Challenge 3: cashed

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Cashed is the educational savings app of the future. It is aimed toward college and recent grad young adults, a population struggling to save. The main purpose of the app is to educate the user, and then help them implement the strategies they have learned in their own daily life. The goal is to never use the word “retirement” because that will scare off the millennial audience; we want to focus on more immediate savings goals to develop the skills needed to subsequently save for that scary idea of retiring in the future. Users link their bank accounts so that the system is able to watch over all of their spending, pushing new savings techniques when necessary.

The advertisement shown leans toward those nudges that Fogg references. Users are working toward a larger goal, which they identify upon sign up. Whether that be a big vacation, a new car, moving out of their parents house, or simply to learn how saving can fit into their life, the app will take the goal into account for the advice it gives. A lot of this idea comes about because college students seem to have very little idea of what it means to save, spending frivolously on new books, daily coffee(s), eating out, and more. The app not only helps the user understand their habits and educates on which can help save the most, but also sets goals for curbing them by incentivizing with rewards.

The rewards system comes into play via companies who would like to advertise within the app. If a user is successful in their goal to eat out only twice a week, the app will provide a reward from a linked company, such as a discounted coffee at Starbucks or lower rate on your next Amazon book purchase. These rewards will help nudge the user to want to save, waving a carrot in their face when they set their goal for the week. 

As the user begins to use the app more, the system will take into account the companies each user is trying to gain rewards from, and an algorithm will tailor to setting goals for more rewards with related sponsors. This will further nudge the user to work towards their small weekly goals and overall big goal. If a user spends more on a particular week, it will set them back a little but not completely; earning the weekly reward will just be a little more difficult, but not impossible. 

The final idea of the app is to help millennials identify with the fact that it is easy to save as long as they be one more aware of their habits and aware of the tools out there to help them save. The initial savings recommendation will be tailored for each user based on their goals and income, but will overall begin with aiming toward saving 7% of income in the first year, raising this rate in the following years. This follows Wells Fargo’s study that everyone can save $1 million if they address the amount they are saving and are more considerate about their spending. This app will help educate about the adult world, and will help the user become a part of it by aiding them in reaching their adult goals.

Sources:

http://www.fastweb.com/financial-aid/articles/money-saving-advice-for-college-students

http://www.chicagotribune.com/business/columnists/ct-marksjarvis-millennials-retirement-millionaires-0807-biz-20160805-column.html

https://www.forbes.com/pictures/eedg45fjem/expensive-text-books/#18c9d91a6b99

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