In Behavioural Science, the Fresh Start Effect represents temporal landmarks that act as powerful psychological cues to motivate us in pursuing change. These “temporal landmarks” help us mentally separate our past selves from our future potential, making it easier to commit to new goals.
Financial new year is a powerful example of the Fresh Start Effect representing a a natural time to hit the refresh button on one’s financial habits. It offers a natural reset point for reviewing budgets, setting financial goals, and making long-term decisions.
Why Fresh Start works and how to make the most of it
The Fresh Start Effect isn’t just about surface level motivation—it taps into deeper psychological shifts that make change easier:
- The new financial year feels like closing one chapter and starting another, making it easier to reassess finances with a fresh perspective- thus being an ideal time to review insurance cover, superannuation balances and investment strategies and goals
- It helps people zoom out from everyday money choices to focus on bigger picture of their long-term goals, like retirement planning or family protection.
- Financial decisions can feel complicated or overwhelming, but the new financial year acts as a natural deadline that encourages people to take that next step—whether it’s setting up a savings plan, boosting super contributions, or reviewing insurance.
AIA’s Behavioural Science team applies an interdisciplinary approach to understand how people process information, make decisions, and behave across different environments and contexts.
We apply these insights to design behaviourally informed communications, experiences, and solutions that help people take meaningful steps towards better health and financial outcomes.
If you’d like to explore how Behavioural Science can support your organisation, please get in touch with your Client Development Manager.