August 13th 2024.
A groundbreaking program in New Orleans has been making waves with its innovative approach to supporting teenagers. The program, known as the "50 Dollar Study," provides a Universal Basic Income of $50 per week to high school students without any specific spending requirements. And as the results have shown, this small but consistent stipend has had a positive impact on the lives of these young individuals.
Initially launched in 2020 with just 20 students at The Rooted School, the program has now expanded to include a whopping 1,600 high school seniors. According to an article on Nola.com, this expansion is a direct result of the program's success in its first phase. In fact, the city of New Orleans has invested $1 million to continue providing this much-needed support to more teenagers in the area.
The program has been a game-changer for its participants, who have seen a significant decrease in school absences, an improvement in literacy skills, and an overall sense of financial stability. This has been especially evident in the students' financial decision-making, as the program has given them real-life opportunities to practice and improve their financial literacy.
In the two cohorts that have been a part of the program's trials, the students have proven to be responsible and wise with their money. On average, they have only spent half of their weekly stipends, with almost half of the money remaining unused. And of the money spent, a majority has gone towards essential needs such as food and other goods and services. This has been a clear indication that when given access and opportunity, these teenagers are capable of making sound financial decisions.
Stacia West, one of the study's lead researchers, believes that this early exposure to financial markets will benefit the students in the long run. "The fact that these kids can interact with these financial markets so early means they will be better equipped in their 20s to make better financial decisions," she explained.
For some students, the $50 per week has been a lifeline, especially when their families are struggling financially. Recipient Dejah Grimes shared, "When I was stressed, I was like, 'I don't really have to stress now.' I can really do my best in school and get my good grades like I always do." The program has not only alleviated financial stress for these students but also allowed them to focus on their education and future goals.
While there are other UBI studies in existence, this program's unique focus on teenagers sets it apart. Its success has inspired the city of New Orleans to consider implementing UBIs for more age groups, with the hope of creating a more equitable and inclusive community. Jeff Schwartz, Director of Economic Development at the City of New Orleans, believes that the results of this study will inform policies and programs that can benefit individuals and the community as a whole.
With a larger class size now involved in the program, more data can be collected to support the implementation of UBIs on a larger scale. And with New Orleans leading the way, it's possible that this program could have a ripple effect and uplift communities nationwide. The "50 Dollar Study" is not just providing financial support to teenagers; it's paving the way for a brighter and more prosperous future for all.
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