The economy might not be in its best shape yet, but a recent study has found that people prefer to save money when there's a prize involved.
According to CCN Money, the National Bureau of Economic Research (NBER) released a study this week that suggests that people save better when "treated like children."
None of this involves a piggy bank.
The study, titled "Do Lottery Payments Induce Savings Behavior?" asked 100 students to choose from different savings accounts. Some students chose traditional savings accounts while others chose "prize-linked accounts."
What did they find?
"Introduce a prize, and people are much more interested in saving and willing to save for longer. Overwhelmingly the students chose the accounts with the potential for big payouts, even though in most instances the guaranteed accounts ended paying more in the same time. The bigger the potential prize, even if the chances of winning shrunk, the more likely people would be to save."
Do you think this is a good idea, and could that potentially make us better savers?