He checks his account for the 4th time today, but his spendings are still in the red.
"Screw it."
So he deletes the app.
Budgeting apps haven't really caught on because they make you feel bad for using them, even when you've put in the work. So it's easier to quit than to stay on budget.
These apps don't know how to make people feel better after people mess up. I believe that the missing ingredient is forgiveness.
But why might forgiveness work? Because it's been used for thousands of years by the most successful startups in the world:
Religions.
Forgiveness in religions invites personal growth. Without forgiveness, you'll push people away with blame and guilt. That's why priests offer confessions. The church understands the power of forgiveness in a way that modern organizations haven't.
Would people be less defensive of their biases if we spoke with more forgiveness? How might an act of forgiveness help someone lose weight, recover from relapse, or spread forgiveness of their own?
Forgiveness research is an emerging field, and I think it's critical for solving problems like retention in budgeting apps and even cooperation against climate change.
I believe that in the future, tech companies will need to incorporate findings from forgiveness and psychological research into their products to cater to one's emotional needs.
Budgeting apps should ask: Why do they want to save money? Did they have a bad week?
After learning more, they might respond with: "Yeah, don't worry about last week. It's totally fine that x happened. We'll hide your stats so we can keep moving forward."
I hope you enjoy the weather this week!
- Curtis
P.S. This newsletter was inspired by the conversation about budgeting apps at around 20:38 of this a16z podcast: https://a16z.com/2020/12/07/social-strikes-back-social-meets-fintech/
#49: Whoa, Slow Down. That Car's Having a Bad Day | #51: When I Fell in Love