Every day, we make financial decisions. From what to buy for lunch, to how we organise our pay - money is a central force in our lives. But have you ever considered how you make those choices? This episode explores the behavioural science behind how we make financial decisions, how we are influenced, and whether those choices are rational. 

This episode is about the Poverty Premium. The Poverty Premium designates the extra tax that low-income earners pay for essential goods and services; everything from utilities to credit to insurance, purely down to the money in their bank account.

When you think of an illegal money lender, perhaps you think of a shady figure in a dark alley, or a faceless contact on a phone screen. You may not picture your next door neighbour, your work colleague, or even your friend. More than one million people in England are currently in debt to an illegal money lender, and two thirds of this group thought they were borrowing from a friend. Loan sharks prey on the financially vulnerable, those with unavoidable expenses, and no other financial choices - in this episode, we learn who they are, and how they’re being stopped. 

This episode is around savings, and how saving into a pension was made easier through one small, but significant change in process. Less than 50% of UK workers were saving in a pension prior to 2012, and more than 80% now do - and our guest today played a role in helping this change become the default across the UK. What’s the next innovation that will change millions of lives?