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The Clarity Effect

Does money clarity free up headspace?

Klarna, in partnership with Headspace teamed up with behavioral scientist Paul Dolan to find out. Here's what 5 studies involving 1,500+ people across the UK uncovered.

Read the report

Shower Thoughts campaign

Shower Thoughts is Klarna’s campaign about what’s on your mind when money isn’t. That led to the Clarity Effect, a study exploring whether financial tools can free up mind space, so the rest of life can come first.

"Money should work like a good referee: keep the game flowing and only demand our attention when needed"

-Paul Dolan, Professor of Behavioral Science, London School of Economics

Our findings

Budgeting is freeing, not limiting

In a study where participants booked a £700 trip to Lisbon, one group’s spending was tracked for them and the other’s wasn’t. Everyone was then asked about the trip. Those whose spending was tracked pictured their holiday more vividly.

Concrete numbers improve your sense of control

In a study where participants were told to expect a car repair bill, one group was quoted £200. The other was quoted £100 to £300. The expected cost was the same, yet those given an exact figure felt 15% more in control.

Seeing your money in one place makes it easier to understand

In a timed task, participants were asked to work out a sum from the same set of financial details. One group got all the details in a single list. The other saw them scattered across messages and notes. With the list, 58% got the right answer in about 53 seconds. Without it, only 9% did, taking about 122 seconds.

A settled payment creates a settled mind

In a study where participants made an imaginary card payment, one group was told it went through. The other was told it was declined. The declined group reported more negative feelings.

Interview with Professor Paul Dolan

Watch the conversation.

Klarna app displayed on a phone next to purple cauliflower and grocery bags.

What does clarity actually change?

Klarna comes from the Swedish klar, meaning “clear”. We commissioned these studies to see how financial clarity changes people’s everyday experiences with money. We found three principles that are shaping our design approach:

Show totals in one place
Be specific about transactions
Make upcoming costs easier to predict

See it in action

Klarna in partnership with Headspace

When money isn’t taking up all your attention, something else can. Headspace is included with Klarna Premium and Max. To get a taste of what Headspace has to offer, you can try Headspace for 30-days for free:

1.
Redeem the code KLARNACLARITY30D at www.headspace.com/code and set up your Headspace account
2.
Download the Headspace app
3.
Log in and start your free 30-day Headspace trial

Start your trial

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