by Nahlah Abdur-Rahman
August 13, 2024
The “$50 Study” will now expand to 1,600 high school seniors in New Orleans.
A New Orleans program is expanding as results show that giving teens $50 a week has positive benefits.
The program grants young people a Universal Basic Income (UBI). Teenagers in the area receive the $50 stipends weekly, with no specific spending requirements. While starting with 20 students at The Rooted School in 2020, the “$50 Study” will host 1,600 high school seniors.
According to Nola.com, the study’s expansion stems from positive results from its original rollout. Moreover, it has received a $1 million investment from New Orleans to continue its distribution to more teenagers. Researchers found that the recurring payments led to fewer school absences, literacy growth, and financial stability for its recipients.
Students in the program, which held trials of 386 participants across two cohorts, also showcased “financial capability.” Results found that they demonstrated financial literacy when given real-life situations. Students from the first cohort spent only half of the weekly allotments, with about 47% still unused.
Of the money spent, approximately 50% went to food, with 30% designated for goods and services. The finding suggested that students often made wise financial decisions when given access and opportunity.
“The fact that these kids can interact with these financial markets so early,” explained Stacia West, one of the study’s lead researchers. “(It) means they’re going to be better equipped in their 20s to make better financial decisions.”
For some students, the money alleviated the stress of caring for themselves when their family’s finances could not.
“When I was stressed, I was like, ‘I don’t really have to stress now,’” explained recipient Dejah Grimes. “I can really do my best in school and get my good grades like I always do.’”
While the program is not the only UBI study to exist, its unique focus encourages UBIs across more age groups.
“This unique guaranteed income study enrolling public high school students will produce results that will inform policy and programming as we all work toward a more equitable and inclusive city,” explained Jeff Schwartz, Director of Economic Development at the City of New Orleans. “This study meets students where they are and provides opportunities for economic mobility that will surely create lasting impacts for individuals and in the larger community.”
With a larger class size, the study can collect more data to prove that implementing UBIs on a grander scale can uplift communities nationwide, starting with New Orleans.
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