A budget setting design intervention for reducing personal expenses for Chinese young generation

Abstract

In China, the young generation faces the problem of low savings, partially due to their lack of self-control in monetary spending. This paper would like to provide a design solution to reduce this demographic’s spending based on a literature review covering such behavioral economics theories as mental accounting and prospect theory. A quantitative research method consisting of surveys and experiments were conducted to collect design insights from users. Our proposed design is a budget setting and spending tracking system in the form of a mobile application and a smartphone case. This system uses a relational display of value and cost to primarily help users reduce spending by setting up a limited budget and facilitate the recording of transactions. Based on user evaluation of the initial prototype, we reflect and summarize a set of strategies for future design for personal finance.