Over two-thirds of Americans have less than $1,000 in their savings accounts, while 34% have nothing at all. And as Gen Yers progress through adulthood, they’re struggling to put money aside for savings or retirement. Tanda is an app from Yahoo Finance that allows people to save money in ‘social circles’ – with friends, family and even strangers – to reach short-term financial goals. Based on the ‘rotating savings and credit associations’ (ROSCA) concept, it works similarly to a credit card – people can pay a fee to withdraw money from the pot whenever they need to, but those who are willing to wait longer can earn a 2% cash reward.

Tanda uses social pressure to change people’s saving behaviourAlexis Brown (2016)

With research showing that 46% of Americans wouldn’t be able to cover a $400 emergency expense, and 56% of them having a ‘longevity disconnect bias’ – which makes saving for the future feel like saving for a stranger – there’s room for brands to get people thinking more positively about saving. Tanda is part of a wave of apps that help people improve their financial habits. Acorns allows people to invest using their ‘small change’, Bond lets users track personal finances via SMS and set financial goals, and Long Game gamifies money management.

Tanda is unusual in that it focuses on changing people’s behaviours. It harnesses public commitment and collective pressure to nudge people into healthier money habits. And with research suggesting that committing to goals publicly can make people more likely to turn over a new leaf, Tanda could provide the motivation that Gen Y Americans need. After all, 91% of renters aged 25-34 want to eventually buy a home.

Mica Anthony is an editorial assistant at Canvas8’, which specialises in behavioural insights and consumer research. She’s passionate about uncovering the newest electronic music producers, re-living ‘90s fashion and championing the voices often left out of mainstream media.