Labeling and spending
Intervention · Financial Products
Can labels lead to efficient spending?
Intervention Description
Labeling money transfers for a specific purpose can influence how the recipient uses the money- a prime example being the "winter fuel payment" to seniors in the UK. Survey data on household fuel consumption has shown that individuals who received the payment spent between 10% and 57% more on fuel than those just below the age threshold. By labeling the payment as fuel money, spending is more likely to be directed towards the labeled purpose.
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