ELI5: Explain Like I'm 5

Incentive

Hey kiddo! Do you like getting rewards for doing something good? Well, that's what an incentive is. It's something that encourages you to do something by offering you a reward or a benefit.

Let me give you an example - Remember how your parents told you that if you did your homework every day, you would get a sticker on your chart, and if you got a certain number of stickers, you would get a surprise reward? That was an incentive!

Incentives can be different depending on the situation. Sometimes it could be a prize, like a toy or a treat for doing well in school or behaving nicely. Other times it could be extra money for working extra hard at your job when you grow up.

The point is that incentives motivate us to work harder and do better in our lives. When we know that there is a reward waiting for us, it makes us more likely to put in the effort and try our best.

So, next time someone offers you an incentive, remember that it's something special that you'll get if you do well, and it's always a good thing!