Carnegie Mellon University

Planning for Your Future Should Not Be Left to Chance

We are faced with countless financial decisions every day that can impact our future. Should we spend or save our money—and how much? Is paying with cash or credit better? How and when should we invest? Is renting or buying a home the best option? Which retirement plan makes the most sense? Which health insurance plan is right for us? Should we take a loan out to pay for college? Are we making what we are worth at work?

And the list goes on.

Behavioral insights can be applied to help people navigate these complicated, and often confusing, decisions. Governments can use them to create policies that will have better financial outcomes in areas like retirement, taxes, health care and benefit participation.

Carnegie Mellon University behavioral economists are designing and testing multifaceted interventions that will help. From how women can level the paying field to how companies should offer retirement plans, they are doing the work that matters.

In the News

Market WatchSpending Too Much Money (Or Too Little) Can Cause Different Kinds of Emotional Pain.
Saving money is often necessary to balance financial obligations and goals, but obsessing over saving could become dangerous and detrimental to a person’s health and well-being.

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Wall Street JournalFinally, More Women Are Asking for Raises. But There’s a Catch.
Though women are advocating for themselves much more, asking carries risks. In 2003, Linda Babcock co-wrote the book “Women Don’t Ask,” exploring the gender divide in workplace negotiations. More than a decade later, she says she has observed awareness around the issue shift dramatically.

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American Economic Association logoWomen's work?
Women are not only more likely than men to volunteer for thankless tasks in the workplace, but they also are more likely to be asked by employers to do them.

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Forbes logoThe ‘I Just Can’t Say No’ Club Women Need To Advance In Their Careers
Six years ago, Carnegie Mellon Economics Professor Linda Babcock was feeling overwhelmed at work. She realized that she spent "tremendous amounts" of her day doing non-promotable tasks, or "favors," which took away from work that would help her career advance.

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WESA Pittsburgh's NPR Station logoWhy Don’t Americans Claim Their Earned Income Tax Credit?
CMU partnered with the Internal Revenue Service to study the psychology and economics behind non-claimants.

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