Using Incentives to Encourage Youth to Invest in Financial Literacy
Syon Bhanot, Michael King, Paolina Medina, Reed Orchinik
The City of Philadelphia
Philadelphia, PA USA
6,859 youth in Philadelphia
In this project, we explore the impact of various financial incentive schemes on the likelihood that young people (high school aged) complete a financial literacy training course online. The population in this study are high schoolers (~16-18 years old) living in Philadelphia, many of whom are from low-income backgrounds and all of whom are part of the Philadelphia Youth Network's WorkReady program (which provides summer jobs for youth in the city). In our study, we randomly assigned the sample to receive one of three email messages advertising a voluntary financial literacy training course online. One group did not receive a financial incentive to complete the course, one group received a fixed financial incentive to complete the course ($40), and one group received a lottery incentive to complete the course (a chance to win one of four $1,000 prizes).