$50 a week for 40 weeks: How no-strings cash changed the lives of teens

A cash transfer program for high schoolers resulted in better attendance and more financial literacy, but no improvement in grades

by Neal Morton

July 22, 2025

The Hechinger Report

Summary for Educators: What the $50-a-Week Teen Cash Study Reveals About Trust, Poverty, and Learning

A groundbreaking study from New Orleans, known as “The $50 Study,” offers valuable insights into how unconditional cash transfers can impact high school students. Launched at Rooted School, a charter school network, the study gave $50 per week for 40 weeks—totaling $2,000 per year—to students, aiming to explore whether small, consistent cash payments could improve attendance, academic performance, financial literacy, and student well-being. The final results, recently released, have significant implications for educators, policymakers, and advocates of youth economic mobility.

Study Design and Goals

The initiative was designed to test whether providing no-strings-attached financial support could positively influence student behavior and mindset. Researchers followed 170 students in the treatment group and compared them to 210 peers in the control group who received no money. The schools involved served mostly economically disadvantaged populations, where students often struggled to stay engaged due to family financial responsibilities, especially during the pandemic.

The primary goal was to boost attendance and school engagement. Secondary objectives included improving students’ understanding of financial products, long-term planning, and academic outcomes like GPA and reading proficiency.

Key Findings

1. Attendance Improved Slightly: Students receiving the $50 attended 1.23 more days of school over the year than their peers—a modest but meaningful gain, especially for students at risk of chronic absenteeism.

2. Academic Scores Remained Static: The additional income did not result in significant changes in grades or reading scores, which the researchers attribute to a range of complex academic and social factors beyond financial constraints.

3. Financial Literacy and Agency Increased: Perhaps the most compelling finding was the development of financial skills. Students learned to save, budget, and spend with intention. On average, they saved $300—a 15% savings rate, compared to the national adult average of just 5%. Many used the funds for essentials like food, braces, college prep, or dance classes. Some used it for discretionary spending, but even this helped students learn the value of money.

4. Social-Emotional Impact: Students reported a greater sense of independence and control over their lives. For many, the weekly deposit symbolized trust, motivating them to attend school and manage responsibilities. Several students commented that it helped them feel seen and supported by the system.

Broader Context and Expansion

The $50 Study aligns with a growing global interest in universal basic income (UBI) and cash transfer programs. While most UBI programs target families or unemployed adults, this initiative uniquely centers teenagers. The findings challenge long-held assumptions that teens will misuse money and instead highlight how trust can be a lever for growth.

The program has already expanded to nine schools in New Orleans and Indianapolis, with plans to launch in Washington, D.C., and potentially Texas. Backed by federal COVID relief funds and local government support, the study is part of a larger movement toward economic mobility and crime prevention through financial stability.

Educator Takeaways

• Unconditional support builds capacity: Students who feel trusted and resourced are more likely to build responsible habits and engage in school.

• Financial education works best with real money: Simulated lessons have limited impact. Direct financial experience offers lasting understanding.

• Behavior change precedes academic growth: Attendance gains may set the stage for future academic improvement, but structural issues must also be addressed.

• Students need flexibility and trust: Providing financial autonomy, even in modest amounts, fosters maturity and future-readiness.

Talia Livneh of the Rooted School Foundation put it plainly: “Kids don’t lack character. They lack cash.” The success of the $50 Study suggests a new educational paradigm—one where trust, support, and cash are tools to help students not only survive but thrive.

Source: Morton, N. (2025, July 22). $50 a week for 40 weeks: How no-strings cash changed the lives of teens. The Hechinger Report. https://hechingerreport.org/50-a-week-for-40-weeks-how-no-strings-c...

Original Article

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Prepared with the assistance of AI software

OpenAI. (2025). ChatGPT (4) [Large language model]. https://chat.openai.com