Memorandum

TO:

FROM:

DATE: April 28, 2021

SUBJECT: Overcoming Financial Management Self Control Problem

Recent economic times have shown that decisions related to personal finances are of significant importance in ensuring better living. The financial decision making process is largely influenced by differences in the spending self-control of consumers. One of the most effective ways to ensure that one has achieved some level of spending discipline in terms of their finances is through more budgeting and planning for finances. However, that is not always sufficient to instill the levels of discipline that one desires and to also ensure that one is in total control of the financial spending. In that regard, a new spending tracker is suggested for individuals, complete with a preloading of certain levels of money that one wishes to spend in a given period. The service features a prepayment plan that is renewable every month, giving users of the application the ability to monitor and control their spending for the said duration. The application provides several benefits to users including allowing one to make a single financial decision at a given time, ability to monitor and control spending, an automatic ay to save, reducing the temptations to buy impulsively, and a wide pool of financial advisors who provide support on matters relating to gaining full spending self-control. The overall aim is to increase the spending awareness of a user in order to create a culture and discipline in making financial decisions, be able to create and adhere to a budgeting plan, and prevent personal financial problems.

The intertemporal choice to spend is a decision that everyone has to make. The consequences are felt both in the near and long term in terms of financial positions and opportunities. The discounted utility model applies to such decisions as those regarding financial self-control, where one weighs the costs and benefits of a decision based on delayed pleasures or pains. Because of the implications of financial decision making, the new self-control application will target fresh-out-of-college first time employees and young families made up of young people aged between 26-32 years. This target market is chosen as a way of creating a lasting culture, both in the use of the application and as a way to attain self-control results. The product would be targeted to young adults using relationship building through advertisements that attempt to relate with the consumer by establishing personal connections between the habit (poor spending self-control), the product (spending tracker), and the individual. These aspects will all be interconnected in the marketing effort through a theme of financial freedom and discipline. The product will use viral ads that can be shared online with friends showing how intertemporal decisions regarding financial management are important for young people. The main idea in the marketing campaign is to show how intertemporal choices made today can impact the trajectory of an individual’s life. Therefore, self-control in financial management will be linked to the new product (application) and marketed to young people as a must-have tool for better financial management outcomes.