Question

We can blame lack of self-control for a number of detrimental health and financial behaviors. Behavioral economists do quite a bit of research around this topic and noticed that some people are aware of their self-control problem while others are not. Jack and Jill are both overspending when using their credit card and will soon be burdened with too much debt. Jack is not aware of the issue while Jill knows that she spends too much every month but can't control herself. How would you help Jack and Jill using different approaches based on their level of awareness?

Answer 1

Jack has to be made aware of the expenses made for, as she is not aware of it.Always check and be aware of why the credit card is used for.Help Jill in controlling her expenditure.If bils are not cleared on due date extra service charges will be levied.

Jill has to be approached in the following way

• Monitor the reason for expenditure
• Analyse before buying anything
• See if it is really necessary for you
• If purchased something always plan in ahead to pay the bills
• Avoid getting influenced by others
• Try not to see any advertisement unnecessarily
• You may take Jill with you when go for shopping or when using credit card
• Always try to carry the cash in hand rather using credit card