Master thesis
Master thesis
In digital design and interactive technologies at the IT-University of Copenhagen, Denmark.
In digital design and interactive technologies at the IT-University of Copenhagen, Denmark.
An exploration into how digital design can empower young adults to improve their financial literacy, using a research-through-design approach. This involved creating and testing 10 unique prototypes with users to uncover effective motivational strategies.
An exploration into how digital design can empower young adults to improve their financial literacy, using a research-through-design approach. This involved creating and testing 10 unique prototypes with users to uncover effective motivational strategies.
Approach
Approach
UX/UI Design, UX Research, Research Through Design
UX/UI Design, UX Research, Research Through Design
Duration
Duration
6 months
6 months
Grade: 12 (A+)
Grade: 12 (A+)
The problem
In Scandinavia, young adults are grappling with a mounting financial challenge. One in five young Danes finds themselves under financial distress, a predicament that not only diminishes their life satisfaction but also hampers their ability to thrive. Furthermore, organizations including the OECD and the EU have highlighted an urgent need to boost both financial literacy and digital financial literacy among citizens to better equip them for the complexities of modern financial life.
In Scandinavia, young adults are grappling with a mounting financial challenge. One in five young Danes finds themselves under financial distress, a predicament that not only diminishes their life satisfaction but also hampers their ability to thrive. Furthermore, organizations including the OECD and the EU have highlighted an urgent need to boost both financial literacy and digital financial literacy among citizens to better equip them for the complexities of modern financial life.
"How can a Research through design approach be applied to understand young adults' motivations for achieving financial literacy?"
Research design
To help answer our research question, we drew inspiration from Zimmermann et al’s (2016) research design, by adopting a research through design approach. To keep a long story short(er), similar to Zimmermann et al. (2016) we conducted initial interviews with young adults. From these insights we created design provocations (lo/mid-fi design concepts in Figma). We explored the design provocations with young adults in order to gain insights into what might motivate them to become financially literate. From these rich insights we created three in-depth digital concepts that we tested with young adults. Following these iterations we produced design guidelines that might help inform future designers on how to facilitate meaningful relations between technology and young adults in their journey towards financial literacy.
To help answer our research question, we drew inspiration from Zimmermann et al’s (2016) research design, by adopting a research through design approach. To keep a long story short(er), similar to Zimmermann et al. (2016) we conducted initial interviews with young adults. From these insights we created design provocations (lo/mid-fi design concepts in Figma). We explored the design provocations with young adults in order to gain insights into what might motivate them to become financially literate. From these rich insights we created three in-depth digital concepts that we tested with young adults. Following these iterations we produced design guidelines that might help inform future designers on how to facilitate meaningful relations between technology and young adults in their journey towards financial literacy.
Design process
Design process
Initial interviews
In order to learn more about how young think about adult personal finances, we conducted two semi-structured interviews. They each lasted 35-45 minutes and our goal was to unfold topics such as: Their spending habits, how they communicated with their friends and acquaintances about personal finances, to what degree the topic is surrounded by taboo and how a digital tool might look that could help motivate them with their personal finances.
Magnus, 20: The economic enthusiast
Magnus has an interest in personal finance reflected in his hobbies.
He is passionate about investments.
He writes articles for a Danish investment publication
He helps other young people on online forums
He has a detailed overview over his personal finances
He plans ahead and saves for his retirement
He does not want any financial tool to be entertaining. He prioritizes utility.
Lasse, 25: The free-spirited young adult
Lasse prioritizes living in the moment and often spends money on nights out with friends.
He often regrets his spending the next morning
Lasse is extremely short-term focused, primarily aiming to make his salary last the month and pay rent.
He has knowledge of budgeting and financial sense from home but lacks the self-discipline to follow it.
Lasse connects poor mental well-being with a bad financial situation
Expert interviews
We interviewed two educators that teach young adults in personal finances. One was employed by a well-known Danish bank. The other was from a non-profit organization. The most prominent finding that related to our project was that learning materials should be relevant to students. If the content relates to the students' current life situations it results in better engagement and more learnings.
Design provocations
Design provocations
Sketching digital concepts (design provocations)
Sketching the design provocations
We employed the 6-3-5 method for brainstorming, generating 18 different ideas to inspire ways our informants could become motivated in gaining financial literacy. To ensure our test sessions remain within a reasonable time frame, we established design criteria to help us narrow down which ideas were the strongest:
We employed the 6-3-5 method for brainstorming, generating 18 different ideas to inspire ways our informants could become motivated in gaining financial literacy. To ensure our test sessions remain within a reasonable time frame, we established design criteria to help us narrow down which ideas were the strongest:
The idea must have a distinct function or concept – the provocation should be easily understood by the viewer.
The idea must have a distinct function or concept – the provocation should be easily understood by the viewer.
The idea must be evocative – the provocation should prompt reflection on a future with the use of the digital concept.
The idea must be evocative – the provocation should prompt reflection on a future with the use of the digital concept.
The idea must address one or more aspects of Self-Determination Theory (SDT): autonomy, competence, relatedness, or extrinsic motivation.
The idea must address one or more aspects of Self-Determination Theory (SDT): autonomy, competence, relatedness, or extrinsic motivation.
In the end we ended up with 7 design provocations that we decided to test with high-schoolers and university students
In the end we ended up with 7 design provocations that we decided to test with high-schoolers and university students
Testing the design provocations
Methodologies:
Semi-structured interviews
Think-aloud test
Methodologies:
Semi-structured interviews
Think-aloud test
We tested the design provocations with 5 high schoolers and 4 university students in the age of 19-26. In total this resulted in three different test sessions. We used think-aloud testing as we showed them the designs, asking them to voice their thoughts as they experienced the design. We then followed up with semi-structured interviews, asking questions such as: "What do you like about the design, "what do you not like about the design" and "is there anything you would like to change?". As our interview sessions progressed, we noticed how natural it was for our informants to think outside the box as they themselves were quick to build upon our ideas, thus indirectly informing us how digital design could help motivate them in becoming financially literate.
We then analysed our findings by finding themes that ran across all of our test sessions, which can be seen below:
We tested the design provocations with 5 high schoolers and 4 university students in the age of 19-26. In total this resulted in three different test sessions. We used think-aloud testing as we showed them the designs, asking them to voice their thoughts as they experienced the design. We then followed up with semi-structured interviews, asking questions such as: "What do you like about the design, "what do you not like about the design" and "is there anything you would like to change?". As our interview sessions progressed, we noticed how natural it was for our informants to think outside the box as they themselves were quick to build upon our ideas, thus indirectly informing us how digital design could help motivate them in becoming financially literate.
We then analysed our findings by finding themes that ran across all of our test sessions, which can be seen below:
Rewards can motivate
Rewards can motivate
In both studies, we found similarities in that our informants expressed that they would be motivated by receiving monetary rewards for their financial performance
"Even if it's only 2.31, you're like: 'oh well, I've won something anyway. Okay 2 DKK, but it's still the feeling of free money'"
In both studies, we found similarities in that our informants expressed that they would be motivated by receiving monetary rewards for their financial performance
"Even if it's only 2.31, you're like: 'oh well, I've won something anyway. Okay 2 DKK, but it's still the feeling of free money'"
Relatedness with peers
Relatedness with peers
Our tests showed that young adults are motivated by digital design tools that foster connections. They were inspired by others to manage their finances and found that sharing experiences helped break the taboo around personal finance.
"It's very cool, it reminds me a bit of Reddit where you can see other people's budgets, and you can see how much other people get paid [...] Sometimes it helps to read or see what others have done, anonymously."
Our tests showed that young adults are motivated by digital design tools that foster connections. They were inspired by others to manage their finances and found that sharing experiences helped break the taboo around personal finance.
"It's very cool, it reminds me a bit of Reddit where you can see other people's budgets, and you can see how much other people get paid [...] Sometimes it helps to read or see what others have done, anonymously."
Social responsibility and relatedness with digital avatars
Social responsibility and relatedness with digital avatars
The girls atttending high school reacted positively to the idea of engaging with a digital avatar and that the sense of connection that could be created between user and avatar would be enhanced if the avatar had its own personality.
"Well, I was about to say that it [digital avatar] is really cute!"
The girls atttending high school reacted positively to the idea of engaging with a digital avatar and that the sense of connection that could be created between user and avatar would be enhanced if the avatar had its own personality.
"Well, I was about to say that it [digital avatar] is really cute!"
A raised hand versus a digital iron grip
A raised hand versus a digital iron grip
This theme relates to one of our design provocations, that explored how the young adults would feel about losing complete autonomy over their personal finances to an AI, that decides what they can or cannot buy. We found that a complete loss of autonomy was not ideal, but a digital tool that guideded them could be valuable.
"What if instead of blocking the purchase completely, you get a notification on your phone that says: 'Hey, we can see that you're buying this. You're already 200 DKK over budget'. That's nudging instead".
This theme relates to one of our design provocations, that explored how the young adults would feel about losing complete autonomy over their personal finances to an AI, that decides what they can or cannot buy. We found that a complete loss of autonomy was not ideal, but a digital tool that guideded them could be valuable.
"What if instead of blocking the purchase completely, you get a notification on your phone that says: 'Hey, we can see that you're buying this. You're already 200 DKK over budget'. That's nudging instead".
Competition can motivate intrinsically and extrinsically
Competition can motivate intrinsically and extrinsically
For some participants, the thought of competing with their friends in becoming financially literate seemed to motivate them, as they would form closer friendships. For others it could lead to feelings of guilt or shame, if they did not perform equally as well as their friends.
"Challenges can be specific to your friend group […]. Then I also think the challenge thing could be good. I think that would really help".
For some participants, the thought of competing with their friends in becoming financially literate seemed to motivate them, as they would form closer friendships. For others it could lead to feelings of guilt or shame, if they did not perform equally as well as their friends.
"Challenges can be specific to your friend group […]. Then I also think the challenge thing could be good. I think that would really help".
Relatability to life situations can motivate
Relatability to life situations can motivate
The participants expressed greater motivation to use a digital tool that reflected their own life situations.
"I think using this app would be kind of difficult because it might be very general and not so much personal".
The participants expressed greater motivation to use a digital tool that reflected their own life situations.
"I think using this app would be kind of difficult because it might be very general and not so much personal".
Opportunity solution tree
We arranged the themes from our research with the seven design provocations in an Opportunity Solution Tree to organize how our findings related to the different psychological needs from SDT: Autonomy, competence and relatedness. In this way, we considered these three psychological needs as opportunities to contribute to our desired outcome - to create motivation for financial literacy.
We arranged the themes from our research with the seven design provocations in an Opportunity Solution Tree to organize how our findings related to the different psychological needs from SDT: Autonomy, competence and relatedness. In this way, we considered these three psychological needs as opportunities to contribute to our desired outcome - to create motivation for financial literacy.
After arranging the different themes, we brainstormed how they could be conceptualized into specific concepts and to what extent the concepts would support specific financial literacy topics, for example budgeting or learning about financial concepts and activities through scenarios. This resulted in three different high-fidelity concepts that we tested with our informants.
After arranging the different themes, we brainstormed how they could be conceptualized into specific concepts and to what extent the concepts would support specific financial literacy topics, for example budgeting or learning about financial concepts and activities through scenarios. This resulted in three different high-fidelity concepts that we tested with our informants.
The three new concepts
The three new concepts
Oinkonomy
Oinkonomy
Oinkonomy is a digital concept where you take care of a virtual pig by managing your finances. The mood and home of your piggy bank reflect how well you're sticking to your budget. You keep its spirits high by spending less in real life. If the mood is high, you gain more coins that you can use to assist your friends if they are having trouble maintaining their budget, or to buy new accesories and furniture for your pig's home.
Oinkonomy is a digital concept where you take care of a virtual pig by managing your finances. The mood and home of your piggy bank reflect how well you're sticking to your budget. You keep its spirits high by spending less in real life. If the mood is high, you gain more coins that you can use to assist your friends if they are having trouble maintaining their budget, or to buy new accesories and furniture for your pig's home.
Quotes from informants:
Dennis, 25
Dennis, 25
University student
University student
"I'm immediately a huge fan. I think it's pretty cute, and I like that savings are gamified in that way".
"I'm immediately a huge fan. I think it's pretty cute, and I like that savings are gamified in that way".
"I'm immediately a huge fan. I think it's pretty cute, and I like that savings are gamified in that way".
Alma, 25
Alma, 25
University student
University student
"It would make me think more about my spendings. I like the idea of nurturing or maintaining a pet and keeping it healthy and alive".
"It would make me think more about my spendings. I like the idea of nurturing or maintaining a pet and keeping it healthy and alive".
"It would make me think more about my spendings. I like the idea of nurturing or maintaining a pet and keeping it healthy and alive".
Carla, 26
Carla, 26
University student
University student
"You can start talking about these things, so I think it's a good conversation starter. It could make it less shameful.
"You can start talking about these things, so I think it's a good conversation starter. It could make it less shameful.
"You can start talking about these things, so I think it's a good conversation starter. It could make it less shameful.
Peerconomics
Quotes from informants:
With Peerconomics, the user can easily view and copy budgets from people with similar finances and life situations. Initially, users must answer questions about income, spending and financial goals. Users are suggested budgets and learning material based on the knowledge gathered about them. Users can then easily get an overview and insight into the finances of similar users and can copy other people's budgets.
With Peerconomics, the user can easily view and copy budgets from people with similar finances and life situations. Initially, users must answer questions about income, spending and financial goals. Users are suggested budgets and learning material based on the knowledge gathered about them. Users can then easily get an overview and insight into the finances of similar users and can copy other people's budgets.
Benedicte, 27
Benedicte, 27
University student
University student
"I like that you can look at others who have a similar profile and see what their budget is".
"I like that you can look at others who have a similar profile and see what their budget is".
Carla, 26
Carla, 26
University student
University student
"You can read up on what they actually do and what they actually spend their money on. So you can compare yourself more 1 to 1".
"You can read up on what they actually do and what they actually spend their money on. So you can compare yourself more 1 to 1".
Dennis, 25
Dennis, 25
University student
University student
"Now that it's an inspiration profile, you have to be inspired by others.
"Now that it's an inspiration profile, you have to be inspired by others.
Budget Buddy
With Budget Buddy the user can set up individual budgets for different categories such as food, clothing and miscellaneous. Once this is done, the user can keep a continuous overview of their budgets in the form of Budget Buddy appearing as a widget on the user's home screen. When the user makes a purchase that falls under a budget that has already been exceeded, the user receives a notification that the budget has been exceeded. The user can now choose to confirm the purchase to complete it, or to decline the purchase and stay within their budget.
With Budget Buddy the user can set up individual budgets for different categories such as food, clothing and miscellaneous. Once this is done, the user can keep a continuous overview of their budgets in the form of Budget Buddy appearing as a widget on the user's home screen. When the user makes a purchase that falls under a budget that has already been exceeded, the user receives a notification that the budget has been exceeded. The user can now choose to confirm the purchase to complete it, or to decline the purchase and stay within their budget.
Quotes from informants:
Carla, 26
Carla, 26
University student
University student
"I like that you can get an overview of your usage and see how things are going without having to open an app. And it gives you a daily reminder".
"I like that you can get an overview of your usage and see how things are going without having to open an app. And it gives you a daily reminder".
Alma, 27
Alma, 27
University student
University student
"Huge fan. I would love to have that widget (...) It could motivate, or I would just as much get satisfaction from being able to see that things are going as they should"
"Huge fan. I would love to have that widget (...) It could motivate, or I would just as much get satisfaction from being able to see that things are going as they should"
Dennis, 25
Dennis, 25
University student
University student
"Really big fan of the fact that it's a widget - it kind of avoids it being just another app. So the biggest selling point is almost that it's a widget. It's really cool".
"Really big fan of the fact that it's a widget - it kind of avoids it being just another app. So the biggest selling point is almost that it's a widget. It's really cool".
Some notes on the test set-up and analysis
The three new concepts has been tested with a similar approach to the first seven: Think-aloud testings and semi-structured interviews. However, for Budget Buddy we decided to test in-situ, meaning we took our informants with us to a local grocery store. Here, we gave them the task of putting certain groceries in their physical basket and scan them at the check-out. Afterwards, we gave them a phone showing the notification from Budget Buddy, which stated that this buy would exceed their budget. This offered richer nuances to our empirical data, as we aimed to test as close to reality as possible. After our tests, we synthesized patterns in the data into themes. I have decided not to include the themes in this case study. Instead, the final synthesis; the design guidelines that we created from our insights will be presented in the next section.
The three new concepts has been tested with a similar approach to the first seven: Think-aloud testings and semi-structured interviews. However, for Budget Buddy we decided to test in-situ, meaning we took our informants with us to a local grocery store. Here, we gave them the task of putting certain groceries in their physical basket and scan them at the check-out. Afterwards, we gave them a phone showing the notification from Budget Buddy, which stated that this buy would exceed their budget. This offered richer nuances to our empirical data, as we aimed to test as close to reality as possible. After our tests, we synthesized patterns in the data into themes. I have decided not to include the themes in this case study. Instead, the final synthesis; the design guidelines that we created from our insights will be presented in the next section.
Design guidelines
As the final deliverable of this research project, we have developed design guidelines based on self-determination theory. These guidelines are intended to serve as a starting point for future designers aiming to create digital tools that motivate young adults to become more financially literate. However, it is essential for future designers to conduct context-specific research to tailor these guidelines effectively.
Relatability:
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Relatability
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Competition
Design guideline: Gamification should only be used as a design tool to increase young people's intrinsic motivation by creating a sense of belonging among friends in social contexts.
Potential risks: This design tool can result in extrinsic motivation, as feelings such as vanity, shame, and loss of autonomy may arise.
Rewards
Design guideline: Symbolic rewards that communicate to the young adult that they have done well should result in an increased perception of competence.
Potential risks: Monetary rewards can result in extrinsic motivation.
Exposure of personal finance
Design guideline: Accessing other people's budgets should satisfy the individual's need for autonomy and competence
Potential risks: In this context, users should be anonymized as providing details about one’s personal finances can be sensitive information.
Guidance
Design guideline: When technology provides guidance in financial management, it should challenge young adults' skills appropriately.
Potential risks: If technology takes too much control over the young adult's financial decision-making, this can result in a sense of loss of control and lead to amotivation
Guidance
Design guideline: Financial management guidance must take into account the physical and temporal context of the young adult
Potential risks: If guidance is given at an inappropriate time while the young person is in a specific physical context, there is a risk that the young adult will prioritize other motivational factors over financial literacy
Relatedness with digital avatars
Design guideline: When the young adult's finances are represented by a digital personality, it should increase the sense of belonging and motivation to manage their finances
Potential risks: The representation can exploit the user's compassion and empathy, creating a guilty conscience or resulting in amotivation.
As the final deliverable of this research project, we have developed design guidelines based on self-determination theory. These guidelines are intended to serve as a starting point for future designers aiming to create digital tools that motivate young adults to become more financially literate. However, it is essential for future designers to conduct context-specific research to tailor these guidelines effectively.
Relatability:
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Relatability
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Competition
Design guideline: Gamification should only be used as a design tool to increase young people's intrinsic motivation by creating a sense of belonging among friends in social contexts.
Potential risks: This design tool can result in extrinsic motivation, as feelings such as vanity, shame, and loss of autonomy may arise.
Rewards
Design guideline: Symbolic rewards that communicate to the young adult that they have done well should result in an increased perception of competence.
Potential risks: Monetary rewards can result in extrinsic motivation.
Exposure of personal finance
Design guideline: Accessing other people's budgets should satisfy the individual's need for autonomy and competence
Potential risks: In this context, users should be anonymized as providing details about one’s personal finances can be sensitive information.
Guidance
Design guideline: When technology provides guidance in financial management, it should challenge young adults' skills appropriately.
Potential risks: If technology takes too much control over the young adult's financial decision-making, this can result in a sense of loss of control and lead to amotivation
Guidance
Design guideline: Financial management guidance must take into account the physical and temporal context of the young adult
Potential risks: If guidance is given at an inappropriate time while the young person is in a specific physical context, there is a risk that the young adult will prioritize other motivational factors over financial literacy
Relatedness with digital avatars
Design guideline: When the young adult's finances are represented by a digital personality, it should increase the sense of belonging and motivation to manage their finances
Potential risks: The representation can exploit the user's compassion and empathy, creating a guilty conscience or resulting in amotivation.
As the final deliverable of this research project, we have developed design guidelines based on self-determination theory. These guidelines are intended to serve as a starting point for future designers aiming to create digital tools that motivate young adults to become more financially literate. However, it is essential for future designers to conduct context-specific research to tailor these guidelines effectively.
Relatability:
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Relatability
Design guideline: The communication style of the design should neither talk down to nor go over the heads of young adults, but should meet them at eye level.
Potential risks: If the young adult is talked down to, this can minimize feelings of autonomy and competence
Competition
Design guideline: Gamification should only be used as a design tool to increase young people's intrinsic motivation by creating a sense of belonging among friends in social contexts.
Potential risks: This design tool can result in extrinsic motivation, as feelings such as vanity, shame, and loss of autonomy may arise.
Rewards
Design guideline: Symbolic rewards that communicate to the young adult that they have done well should result in an increased perception of competence.
Potential risks: Monetary rewards can result in extrinsic motivation.
Exposure of personal finance
Design guideline: Accessing other people's budgets should satisfy the individual's need for autonomy and competence
Potential risks: In this context, users should be anonymized as providing details about one’s personal finances can be sensitive information.
Guidance
Design guideline: When technology provides guidance in financial management, it should challenge young adults' skills appropriately.
Potential risks: If technology takes too much control over the young adult's financial decision-making, this can result in a sense of loss of control and lead to amotivation
Guidance
Design guideline: Financial management guidance must take into account the physical and temporal context of the young adult
Potential risks: If guidance is given at an inappropriate time while the young person is in a specific physical context, there is a risk that the young adult will prioritize other motivational factors over financial literacy
Relatedness with digital avatars
Design guideline: When the young adult's finances are represented by a digital personality, it should increase the sense of belonging and motivation to manage their finances
Potential risks: The representation can exploit the user's compassion and empathy, creating a guilty conscience or resulting in amotivation.
Lets work together
Say hi
perkristianlinnemann@outlook.com
Lets work together
Say hi
perkristianlinnemann@outlook.com
Lets work together
Say hi