101. My name is Michael Roush, and I'm the manager of financial empowerment and innovation

at the National Disability Institute. Today, I am joined by Wynne Lum, philanthropy manager

at Bank of America; Nicole Truog, associate director, the Center for Financial Security

at the University of Wisconsin Madison; and Anya Samak, who is the assistant professor

at the University of Wisconsin Madison. Before we get started with today's webinar, we do

have some housekeeping tips that we need to go over. My colleague, Nakia Matthews is going

to cover that information. >> Good afternoon, everybody. The audio for

today's webinar is being broadcast through your computer. Please make sure that your

speakers are turned up or your headphones are plugged in. You can control the audio

broadcast via the audio broadcast panel, which you see here below. If you accidentally close

the panel you can reopen it from the top menu item by going to communicate, join audio broadcast.

You can also use this to control the sound if the sound becomes distorted. If you do

not have sound capabilities on your computer or you prefer to listen by phone, you can

dial the number you see here. I will also put the information into the chat box. You

do not need to enter an attendee ID. Real-time captioning is provided during this webinar.

The captions can be found in the media viewer panel which appears in the lower right-hand

corner of the webinar platform. If you want to make the media viewer panel larger, you

can minimize some of the other panels like chat, Q&A or participant and conversely if

you do not want to see the media viewer panel, you can minimize it. There will be a question

and answer session at the end of the webinar. Please use the chat box or the Q&A box to

send any questions you may have to us during the course of the webinar. We will directly

-- direct these questions accordingly. If you are listening by phone and not logged

into the webinar platform, you may also submit questions by e-mailing them directly to me,

Nakia Matthews at nmatthews@ndi-inc.org. Please note that this webinar is being recorded and

that the materials will be put on the NDI website. If you experience any technical difficulties

during the webinar, please use the chat box to send me a message, Nakia Matthews. Or you

may e-mail me at nmatthews@ndi-inc.org. >> Great. Thank you, Nakia. Today's webinar

is our second in a three-part series that we are doing with support from Bank of America.

Our first webinar was introducing us to financial capabilities and key concepts and strategies

surrounding financial capability. Today's webinar is to introduce us to Behavior Economics.

What is it? What is the impact of Behavior Economics? Our guests today will help us understand

this topic. We are thankful for our friends from the University of Wisconsin, the Center

for Financial Security, for partnering with us today on this webinar. Please note that

today's webinar is not disability specific as we are exploring this topic together. And

then together we will ponder how Behavior Economics applies to the work that we are

doing together to advance the economic self-sufficiency for persons with disabilities. Our objective

for today's webinar are to define Behavior Economics, understand key components and look

at strategies to use as we work to create positive financial habits for clients we serve.

I would like to thank our sponsor of today's webinar, Bank of A merica, for their support

of expanding the financial capability of persons with disabilities. I would also like to thank

Bank of America for choosing the National Disability Institute to be one of the nonprofit

organizations highlighted on Bank of America's Times Square billboard this weekend and the

weekend of June 1st. If you are in the New York City area and can make it down to times

square, please do and take a picture in front of the billboard. When our logo comes up.

And send it to us. We'd love to highlight our partners with the Bank of America billboard

and NDI logo displayed and we're very honored for this opportunity and we thank Bank of

America for highlighting the National Disability Institute. For those of you that are new to

the National Disability Institute, before we turn it over to our presenters, I would

like to share with you a little bit of information. The National Disability Institute is a national

nonprofit organization dedicated to building a better economic future for Americans with

disabilities. We are the first national organization committed exclusively to championing economic

empowering -- empowerment, and financial stability for all persons across the full spectrum of

disabilities. National Disability Institute affect change through public education, training,

technical assistance, and policy development to help the one in three Americans with disabilities

living in poverty take steps towards brighter financial futures. To learn more about the

National Disability Institute, go to RealEconomicImpact.org. At this time, I would like to turn it over

to our friends at Bank of America. And we have Wynne Lum, who is the fanatical the -- the

philanthropy manager. Wynne, have you've been able to join us? -- have you've been able

to join u s? -- have you been able? Wynne will be joining us in just a minute. Until

he does join us, Nicole, can I turn it over to you?

>> Yes. Can you hear me okay? >> Perfect. Thanks, Nicole.

>> No problem. I'm delighted to participate today. I wanted to take a moment to say a

few words about the Center for Financial Security -- financial security. We are and applied

research Center and our research really focuses on working to build financial capabilities

for families and individuals over the life course. We do this through research that looks

at the measurement of financial capabilities, targeting interventions to populations at

risk, and also testing strategies and products and services. And so I couldn't leave you

today without a little plug for the center and have provided some resources here. I hope

you'll take a look at our website where we have a lot of our research published and also

policy briefs that are two to three page snapshots of our research. And all of our research,

we couldn't do it without our affiliates. And Anya is one of 50 plus affiliates who

are researchers across the country and across the campus working to look at financial capabilities.

If you're interested in learning more about financial security over the life course, we

do have an online conference coming up that's the pathways 2013 link. So thank you to Michael

and his team. I look forward to hearing more from Anya.

>> Great. Thank you, Nicole. And thank you for joining us today and for connecting us

with Anya. I think we might have Wynne back on the line, before we turn it over to our

main presenter, Wynne will be joining us momentarily. Nakia, I sent you the number. One piece I'd

like to share with you before Wynne joins us is that we have a partnership with Bank

of America's disability -- Disability Advocacy Network. And we are partnering with members

of the Bank of America team to increase awareness on financial wellness for persons with disabilities

through two opportunities. We have the financial education training as well as disability awareness

training for VITA volunteers, tax and asset building coalitions, debt management partners,

IDA and financial education providers. If you are interested in being connected with

a representative from Bank of America through the Disability Advocacy Network, please send

me an e-mail, Michael Roush, at mroush@ndi-inc.org. And we will be able to connect you to these

volunteer opportunities within your area. And so now what I'd like to do is I think

we have Wynne Lum on the l ine. So, Wynne, I'll turn it over to y ou.

>> Michael, thank you very much. Thank you for talking about the Disability Advocacy

Network at Bank of America. You mentioned earlier the admission -- the mission for the

National Disability Institute. Your mission is the reason why we are pleased to partner

with you and your organization, to help consumers be better able managing their finances. And

you had mentioned the times square recognition -- we were recognizing a handful of our have

-- partners and the wonderful work they do. Thank you for doing the work that you are

doing. This is a great time to be part of this conversation and this learning session

we're having. I'm in between frazzled -- so this is a great day you picked for this conversation.

When I mean I'm in between, we just finished with Mother's Day. And I was just stressed

out on what to get and the gifts I had to buy. And now were going from Mother's Day

to Father's Day to graduation, prom and everything else we have to do, not to mention necessities

that we all have. So how do you pay for all that? What used decide to get? What's going

to make mom and dad happy? What's going to make the graduate happy? And then do -- cannot

even afford to do it? I don't have to worry about affordability, do I? The marketers are

telling me that I can pay with easy pay, I can delay away, installment, I can pay with

other people's money. And so all of this is stressing me out because we all know that

impulsive buying can lead to some bad habits. And we need to be more thoughtful, we need

to be more deliberate, we need to be able to help ourselves manage our finances. That's

one of the reasons I'm interested in the work that the National Disability Institute is

doing but also the work that's being done by the University of Wisconsin Center for

financial security. They are some of the leading pioneers and experts and smart people doing

this work under the leadership of Dr. Michael Collins and Nicole Truog, who we're going

to hear from today, and Anya Samak in all the work they're doing to help us achieve

financial security. So we at Bank of America believe that consumers should be more thoughtful

and should be able to help themselves, because better consumers make better customers for

us but they also help relieve the stress so that we're not all frazzled with understanding

how to manage our finances. Michael, I'm interested in learning from the panelists today and what

they're doing. Thank you for letting us be a part of this.

>> Great. Thank you, Wynne. We appreciate you being on the call today. So now is the

main part of our webinar presentation today. And we're really excited to bring this topic

to you all. It's a topic that we've been exploring and looking at as we've traveled across the

country. Partners from both the asset building community, financial services as well as the

disability community have said to our team, what is Behavior Economics? What does it include?

Please bring us some information on it. And so when we reached out to the University of

Wisconsin, they connected us with Anya Samak, who is going to share some great information

with us today. She's been studying Behavior Economics. And we're delighted to have Dr.

Samak join us today. So with that, Anya, I'm going to turn it over to you.

>> Great. Hopefully everyone can hear me. >> Sounds great.

>> Yes? Good. My name is Anya Samak. I've been a professor at the University of Wisconsin

Madison and Center for Financial Security the past year. Before that, I was doing behavioral

economics research at the University of Chicago. And I received my PhD in experimental behavioral

economics from Purdue University. So I've been working on behavioral Econ for quite

a while and also mostly working on general behavioral principles that can be shared across

many domains. Not just thinking about why people choose to save versus spend or how

people to -- choose to allocate their money and what behavioral biases exist in that decision

but also very related topics such as, why do people choose to exercise or not? Why do

they choose to eat healthy or not? How do people decide about philanthropic giving and

so on? Today I'm going to be more general and you'll learn a little bit about the different

main principles in behavioral economics and how they can be applied to contact. So when

I talk today, I'm going to break the presentation up into three components. First, I'm going

to tell you what but it -- Haverhill economics is. As Michael said, behavioral Econ 101.

Then I'm going to tell you a little bit about how economists use experiments to study behavior.

Finally I'll give you some lessons on how insights from behavioral economics can be

applied in real settings and give you some examples of studies that have done this. So

before we get started I'm going to tell you about economics. When a lot of people think

about economics or if I meet someone at a party and tell them that I'm an economist,

people usually assume that when I'm interested in is studying money. How do people decide

to spend their money? What does the GDP look like? And that is macroeconomic q uestions.

Really, as economists, we think about any decision being an economic one, because microeconomics

is really the study of how individuals or firms make decisions to allocate limited resources.

Limited resources could be money but it also could be time. You could think about choosing

whether to buy a TV or invest that money in a retirement account as an economic decision.

You could also think about choosing whether to spend time watching TV or choosing to spend