financial incentive

Profit-driven encouragement offered

A financial incentive is a monetary reward designed to motivate specific behavior—bonuses for meeting sales targets, tax breaks for installing solar panels, rebates for trading in old appliances.

The term appears frequently in policy discussions: The bill includes financial incentives for companies that hire veterans.

Unlike penalties, financial incentives work by making desired actions more attractive rather than punishing unwanted ones.

Related

matching funds · government grant · commission · subsidy · performance bonus · tax deduction · stock options · profit-sharing · signing bonus · sign-on bonus · kickback · merit pay · pay raise · retention bonus · referral bonus · finder's fee · tax credit · golden parachute

Opposites
type of motivation

financial incentivemoral persuasion

Influence through ethics

intrinsic motivation · sense of duty · social pressure · emotional appeal · civic duty

reward vs. punishment

financial incentivefinancial penalty

Monetary punishment for violations

fine · economic sanction · tax · surcharge · fee

encouragement vs. barrier

financial incentivepaywall

Fee-based content restriction

Family

financial, financially, finance, finances, financed, financing, financier, financiers, incentive

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Top 100,000
Profile
Used worldwide · Timeless · Abstract · Everyday, not technical · Rated G