The Asset Building Program released a paper today titled “The Financial Health Check: A Behavioral Approach to Financial Coaching
.” The paper, coauthored by Antoinette Schoar, a professor at MIT, and Piyush Tantia, executive director at ideas42
, presents the findings of a pilot organized by ideas42 to test the effectiveness of a new way of offering financial coaching called a “Financial Health Check,” or FHC. The new type of financial coaching differs from the traditional form of financial coaching in a number of ways. Perhaps most importantly, FHC attempts to adopt behaviorally informed strategies of simplicity and automation to maximize the utility of coaching time and eliminate key obstacles to successful interventions and increased saving.