The Penny to Penny project motivated low-income people to save through financial and non-financial incentives
The project tested the ability and willingness of people to regularly save over a 6-month period. By reaching out to low income people, social welfare recipients, the disabled, pensioners and people in rural areas, we tried to find out:
- What is the most effective savings incentive?
- Who is most likely to participate in savings promotion schemes?
- How can we teach low-income people why and how to save?
What incentives did we offer?
We tested two strategies:
- Savings rewards: We offered one group the opportunity to win money in the “Penny to Penny” competition — either matched savings (up to $70) or a lottery prize (up to $430). To qualify, they needed to save regularly in their bank accounts.
- Savings reminders: We sent the second group regular savings reminders, either through monthly postcards or weekly text messages.
Learn more
- Download the MFC Policy Brief (English, Polish)
- Download the report on savings reminders program (English)
- Download the report on savings rewards program (English)
- Contact the MFC financial education team
This project (July 2010-December 2011) was financed by the Levi Strauss Foundation.
