Most people wouldn't describe themselves as savvy moneymanagers. Yet we all face the challenge of stretching our paychecksto cover seemingly unpredictable expenses, sometimes with littleroom for error. For years, the standard way of tackling thisproblem has been with financial education programs. The thinkingwas that the main problem was an information gap, and arming peoplewith the knowledge to navigate money matters would close the gap.But while these well-intentioned programs do appear to increaseknowledge, they haven't been shown to change behavior – orimprove financial outcomes.

The financial health space, made up of people and organizationspromoting financial inclusion, has stepped up to this challenge,incorporating a new focus on action into educational programs andprompting people to set goals for the future during their sessions.This is a major step in the right direction. However, setting agoal is not the same thing as achieving it. Many people don't knowwhere to begin, or they drop off somewhere along the way.Behavioral science – the study of how we as humans make decisionsand take action in the real world – accounts for this. Using suchinsights from our predictable human tendencies can inform financialmanagement programs to help members create concretegoals and follow through on them, improving financialhealth.

We recently put this to the test in the Financial Health Check,a light-touch, behavioral alternative to financial coaching.Supported by the MetLife Foundation and designed by nonprofitbehavioral design lab ideas42, the Financial Health Check wasoffered to credit union members at BECU, the nation's fourthlargest credit union, which is based in Washington State. During aone-time, 30 to 60 minute phone-based session, specially trainedconsultants from BECU helped participants make concrete decisionsrelated to increasing savings and reducing debt. This brief butspecialized session helped credit union members save 34% more inthe next 12 months than peers who didn't participate. How?