Could $50 a Week Empower High School Students to Set and Meet Education Goals? This New Orleans School Aims to Find Out
In the midst of the sharpest economic decline in US history, there has been a renewed interest in the idea of universal basic income, which involves providing cash payments to low-income families. In light of the ongoing pandemic, a high school in New Orleans is preparing to conduct a unique small-scale pilot program to determine whether modest grants given to seniors can improve their future prospects.
Rooted School, which was launched three years ago with the aim of reducing the wealth gap between black and white students within their lifetimes, plans to provide 10 members of the Class of 2021 with $50 weekly transfers through a cash app starting in September. This initiative is made possible through a partnership with 4.0 Schools, an education innovation incubator in New Orleans, which is providing funding for the grants and studying their effectiveness. Rooted School’s leaders also intend to hire two university researchers to analyze the results of the pilot program.
The main objective of this micro-pilot is to ensure that high school graduates possess the necessary job skills to achieve economic stability and enable them to attend college. The question Rooted School aims to answer is whether cash transfers in a high school setting can ultimately improve the lives of their students. Hassan Hassan, the CEO of 4.0 Schools, highlights the potential impact of guaranteed weekly transfers for a year on stress levels and academic achievement.
Cash transfers can be implemented in various ways, but the core concept is to establish a minimum financial safety net. By providing individuals with a predictable and stable source of income, they can invest in activities that enhance their quality of life and help them escape poverty. Examples of existing initiatives include Santa Clara County’s provision of $1,000 per month to young adults transitioning out of foster care and Stockton’s mayoral initiative, which gives $500 per month to 125 residents for 18 months to study the impact of the funds.
Hassan and Jonathan Johnson, the founder of Rooted School, aim to enlist the researchers currently monitoring the Stockton experiment to oversee the high school’s micro-pilot. Both researchers, Stacia Martin-West from the University of Tennessee College of Social Work and Amy Castro Baker from the University of Pennsylvania’s School of Social Policy and Practice, possess expertise in cash transfers.
The decision to begin with a small number of students and a modest amount of cash was based on previous research that revealed even small grants of $500 per month may have unintended consequences. For instance, an increase in a family’s income due to such grants may render them ineligible for healthcare or housing subsidies without sufficiently replacing those benefits.
While some critics of universal basic income express concerns about recipients using the money frivolously or in harmful ways, researchers generally find that the funds are primarily used for basic necessities. Hassan asserts that investing directly in people living in poverty has been proven to yield positive outcomes, as they are best equipped to make decisions that improve their circumstances.
Hassan acknowledges that the idea of providing cash to teenagers might raise concerns and make many adults uncomfortable. However, for young individuals growing up in New Orleans, the reality remains that they do not have access to cash. A weekly $50 transfer can help cover expenses like gas for commuting to work, contribute an extra $200 per month to a family’s income, or make college preparation more feasible. Additionally, if the Rooted-4.0 micro-pilot follows the pattern of larger-scale programs, the psychological security provided by a guaranteed source of income will reduce participants’ anxiety and enable them to plan for the future.
Hassan concedes that some students may not use their cash transfers wisely. However, he argues that it is better for them to learn money management skills in high school rather than during college. Past experiences have shown that small missteps often hinder students’ progression and attainment of a degree.
Both Hassan and Johnson have personal experiences that demonstrate how poverty creates instability for economically disadvantaged students. Hassan, who was born in Sudan, faced limited educational opportunities until his mother won the US diversity immigrant visa lottery, allowing him to accompany her to America. He recognizes the odds against his success and feels a strong sense of responsibility as a result.
RelatedNOLA’s Rooted School Aims to ‘Beat the Streets’ by Graduating Students Ready for High-Tech Jobs
Johnson’s experience has led him to believe that it is crucial for students to graduate with the skills to secure a stable income. Recognizing the rapid growth of New Orleans’s high-tech industry, Rooted is equipping its students with industry certifications, ensuring that they not only receive a diploma but also have access to promising job opportunities upon graduation.
The inaugural class of Rooted is scheduled to graduate in the spring of 2021, with some students already receiving job offers through a collaboration between the school and local companies.
Despite having devised the cash transfer program prior to the pandemic, which further impacted New Orleans’s already fragile economy, Hassan and Johnson remain hopeful that the consistent financial support will help students navigate through this period of instability.
"The pandemic has accentuated the economic and educational disparities faced by our most vulnerable young people and families," says Hassan. "In these uncertain times, it is crucial that we implement swift and adaptable solutions that empower individuals to take control of their own circumstances. We firmly believe that now is the time to directly invest in our economically insecure youth and trust them to fulfill their own needs."
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