ELI5: Explain Like I'm 5

Incentives

Incentives are like rewards for doing something good. Remember how sometimes mommy and daddy give you a sticker or a treat when you clean your room or do your homework? That's an incentive! It's something that encourages you to do something good because you get something you like in return.

In the same way, incentives can be given to grown-ups too. For example, when mommy and daddy go to work, they get paid money. This is an incentive for them to work hard and do a good job. When they do a good job, their boss is happy and maybe they get a bonus or a promotion. These are all incentives to encourage grown-ups to work hard and do their best.

Now, incentives can also be used to encourage people to do things that maybe they don't like so much, but that are important or necessary. For example, visiting the doctor or dentist can be scary or not fun, but if mommy promises you a treat after it's over, then that's an incentive for you to go and do something that is good for you.

Incentives can come in different forms, like money, gifts, recognition, or just a pat on the back. But the idea is to give people something they value in return for doing something good or important. And that's what incentives are all about - encouraging people to do the things they need to do, and rewarding them for doing it well.