Behavioral Economics Theory and Savings Consciousness

An Islamic Introduction to the Jordanian Economy

Abstract

The research aimed to identify the most basic concepts in the theory of behavioral economics, with a focus on awareness of savings and its proposed applications in the sectors of the Jordanian economy. The research followed the descriptive approach in reading and analysis. It also deals with the concepts of savings awareness, behavioral economics, and mental biases in the field of behavioral savings awareness and its possible practical applications in the Jordanian economy, within the framework of public policy, the Jordanian Islamic finance sector, and other sectors. The research concluded that behavioral economics is based on intervention in evaluating the behavior of individuals through the policy of nudges to the lowest possible extent, and this policy affects the freedom to choose between alternatives, and it can be applied in various programs such as savings behavior programs that stimulate a culture of saving, and push individuals towards saving. In line with their income, with reference to the importance of preserving Sharia privacy in the Islamic finance sector.