This paper discusses the opportunity for a state government backed savings product offered through the lottery channel, making the case for the role of government in savings, the potential of the lottery channel for offering such a product, the impact of a lottery-based savings ticket on consumers, and how such a product could be offered to consumers through the lottery channel.
Prize-linked savings (PLS) models are structured to motivate individuals to save by making the act of saving fun and rewarding. In 2009, D2D helped launch Save to Win, an innovative PLS model, at eight credit unions in Michigan with impressive results.
On November 18, 2011, over 80 individuals from an array of sectors – including financial services, public policy, government, academia, nonprofits, and start-ups – gathered in Boston, MA for the first-ever prize-linked savings (PLS) conference.
At a time when savings are important, how do we engage consumers in the act of saving and reinstitute a culture of thrift in America? One promising way is to ensure that the act of saving is fun. Prize-linked savings (PLS) models are structured to do exactly that - reward savings behavior to help motivate individuals to save by making it fun.
Prize-linked savings (PLS) products hold great promise as a tool for improving savings outcomes for financially vulnerable Americans. In early 2011, Doorways to Dreams (D2D) Fund commissioned a panel survey of low-to-moderate income (“LMI”) households in five states.