Nudging towards better Money Management

August 14, 2008

One of the areas that is critical in Money Management for consumers is for them to have knowledge on what kind of fees and other charges, that the banks are passing on to them.

A op-ed in the WSJ by the authors of Nudge is quite interesting

Once a year, credit card issuers would be required to make available to users two secure electronic files. The first would be essentially a spreadsheet that listed all the ways in which a customer can be charged. For example, the spreadsheet might reveal that if a payment is received late, the customer is charged a fee and the interest rate is raised by 200 basis points. The disclosure would also reveal how much customers are charged for transactions in foreign currencies. The second file would be a list of all the actions the customer made in the past year that incurred a charge.

This is one of the areas that MoneyManage would leverage on to create value for it’s subscribers.