The Metro: ‘Default Day’ could save you money in the new year
Michael Luca is a professor of economics at Johns Hopkins University. He suggests we take time in January to double-check all the accounts that automatically withdraw our money and get rid of the service we no longer use.
In January, it’s customary to establish resolutions or set goals for the year. But behavioral economists believe we could do more to change our spending habits.
So many services nowadays—from streaming to software downloads to gym memberships—use a subscription model, which forces us to constantly pay monthly or annually for the things we want.
Michael Luca is a professor of economics at Johns Hopkins University. He has studied these behaviors and has a proposal to adopt a new trend at the top of the year.
He suggests we take time in January to double-check all the accounts that automatically withdraw our money and get rid of the service we no longer use.
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