I came across this article in the Financial Post yesterday- and thought it interesting. In pre-approved withdrawals, people begin to forget about that money and adjust their budgeting to accommodate the $25 less (or whatever the amount is). For people living on a tighter budget, setting up an automatic withdrawal with your bank account would quickly become invisible and perhaps less painful than annually trying to come up with a lump sum of money. Read the article here.
April 15, 2011