Prize-Linked Savings

Many families are faced with critical choices when it comes to managing household income. General expenses and entertaining or ‘fun’ purchases often overshadow important financial priorities. Thus, the long-term benefits of saving are cast aside in favor of immediate rewards. Preliminary data indicates that incentives are powerful and can encourage everyday consumers to develop good saving habits for the future. In an effort to make saving fun, organizations have started to look at prize-linked savings (PLS) game structures that can generate excitement about an otherwise mundane activity and create win-win situations where consumers save, have chances to win prizes, and earn interest on deposits.

Prize Linked Savings (PLS)