Prizes can promote positive financial decisions.
For centuries, prizes have motivated people to act. Americans spend $70 billion on lottery tickets each year in the hopes of winning a prize. The possibility of winning creates excitement, anticipation, and engagement. At Commonwealth, we apply this insight to motivate positive financial behaviors that lead to financial security and opportunity.
Commonwealth’s first application of this insight was to promote savings behaviors at credit unions. We have since experimented with prizes to promote tax time saving and saving on prepaid cards. Our research results have repeatedly found that prizes provide the motivation needed to get people to start saving and build a savings habit. We believe that the power of prizes can be applied to solve other financial challenges.