Results from The $50 Study dual-year Randomized Controlled Trial Show Students Used Unrestricted Cash to Meet Basic Needs, Build Financial Skills, and Increase Self-Efficacy

NEW ORLEANS, July 22, 2025 /PRNewswire/ -- New gold-standard research on Rooted School Foundation's groundbreaking $50 Study finds that direct cash transfers to high school students boost attendance, build financial skills, and strengthen self-efficacy.

The dual-year randomized controlled trial (RCT) evaluation, led by researchers from the Center for Guaranteed Income Research (CGIR), a collaboration between the University of Tennessee, Knoxville, and the University of Pennsylvania, tracked over 380 students across three high schools (Rooted School New Orleans, Rooted School Indianapolis, and George Washington Carver High School in New Orleans). Students in the treatment group received $50 per week for 40 weeks via a reloadable debit card, while students in the control group received a $10 monthly Amazon gift card. Data was collected through academic records, transaction data from banks, in-depth interviews, and online qualitative surveys. The $50 Study is the largest randomized controlled trial of unconditional cash transfers to high school students ever conducted in the U.S.

Key findings from Phase I (2022-2023) & Phase II (2023 - 2024) include:

• Improved Attendance: Students who received the cash transfers attended 1.23 more days of school in the semester following the intervention compared to students in the control group.
  
  
• Stronger Financial Capability: Treatment group students showed greater understanding of financial products and long-term planning compared to their peers in the control group.
  
  
• Financial Discipline: Students demonstrated notable self-control and planning, ending the study period with an average of $300 remaining in their accounts.
  
  
• Meeting Basic Needs: About half of the funds students received (45.8%) were spent on essentials like food, with additional funds going toward educational expenses and savings.
  
  
• Greater Agency: Students reported increased feelings of control over their finances and confidence in making long-term decisions. Students reported spending their cash transfers on activities that were aligned to their future goals, such as dual enrollment coursework, ACT preparation classes, and getting a driver's license.

"The results show that when you give young people cash, they use it to meet their needs and invest in their futures," said Jonathan Johnson, Founder & CEO of Rooted School Foundation and architect of The $50 Study. "This is about economic trust and financial education. The young people in the program are showing that this form of hands-on learning helps them build real financial responsibility."

While the study did not aim to improve academic outcomes directly, it offers new insights into how cash transfers can build a foundation for long-term well-being and economic mobility, especially for youth at a critical juncture in their lives.

"The findings from The $50 Study align with what research suggests: when young people are given the opportunity to manage money in low-stakes environments, they build the habits that shape long-term financial health. Increases in saving and intentional use of funds today can translate to better financial management and lower susceptibility to risky financial products tomorrow. The short-term habits we're seeing are laying the foundation for lifelong financial capability." - Dr. Stacia West, University of Tennessee, Knoxville & Co-founder of the Center for Guaranteed Income Research

With school systems and policy leaders exploring how best to support youth and their futures, The $50 Study offers a clear takeaway: increased access to cash makes a difference. Rooted School Foundation is currently facilitating The $50 Study in partnership with the City of New Orleans' Mayors' Office; this study will include a longitudinal expansion to better understand the long-term impact of direct cash assistance.

"At George Washington Carver High School, we've seen firsthand how The $50 Study helps our students show up—not just physically, but with a renewed sense of purpose and possibility. When students have the resources to meet their basic needs or pay for things like food, transportation, and school supplies, they're better equipped to engage in their education. As schools consider how to best support students, this study is a powerful reminder that putting money directly into the hands of young people makes a real and lasting difference. This is why we've continued to participate in The $50 Study and hope to see it grow." - Read Irvin, Chief of Staff, Collegiate Academies

"The $50 Study offers an exciting and evidence-based approach to youth economic development. By giving young people access to unrestricted cash, we're not just meeting immediate needs—we're creating the conditions for long-term economic mobility. Programs like The $50 Study have the potential to reduce inequality, strengthen workforce readiness, and ultimately fuel economic growth across New Orleans. We're proud to partner on this work that's investing in our city's future, one student at a time." - Jeffrey Schwartz, Director of Economic Development

About Rooted School Foundation

Rooted School Foundation is the nonprofit engine behind the Rooted School network, which includes 4 public charter schools in the United States. Rooted School Foundation leads innovative programs like The $50 Study to close wealth and opportunity gaps for high school students across the country.

Support for The $50 Study

Individuals and organizations interested in investment or involvement in The $50 Study can connect with the team by emailing [email protected], listening to participant stories on The Rooted Cash Podcast, or donating to the program here.

CONTACT: [email protected]

SOURCE Rooted School Foundation