Communicating amounts in terms of commonly used budgeting periods increases intentions to claim government benefits

In response to rising child poverty, in 2021, the Biden administration sent direct cash transfers to families through the expanded child tax credit (CTC). However, millions of low-income families did not automatically receive their CTC and needed to actively claim it. Policymakers have tried to reach out to this low-income population, highlighting that they could receive up to $3,600 per year for each child. The current work demonstrates that this messaging strategy may be suboptimal. Using common budgeting periods (e.g., $300 a month) to describe the CTC benefit amounts increased CTC claiming intentions relative to the status quo.