This study contributes to the literature by examining associations between incentives and savings
outcomes in a CDA initiative using data collected from 10 community programs with distinct
incentive structures. In this way, findings from this study can inform future CDA policy design. At
the same time, this study expands understanding of incentives in public policy in general and savings
policy in particular. Incentives, as well as penalties, are one of the most commonly used policy tools.
Policymakers often adopt incentives to induce or encourage certain behaviors among the target
population. Policy incentives, however, do not always produce the expected outcomes because the
target population may perceive or respond to these incentives differently than how policymakers
anticipated (Stone, 2002). It is, therefore, an empirical question as to whether or not incentives in a
CDA initiative achieve the expected outcome of facilitating savings for children’s future.