Many opponents of cash transfers and welfare programs worry that giving money to people with low incomes will result in them working less, engaging in riskier behaviors, and buying illegal substances or “temptation goods” such as drugs and alcohol. Underlying this belief is the idea that people who need financial assistance are untrustworthy and that their financial position reflects a lack of motivation or a moral failing rather than a societal one.

Yet our recent research shows the exact opposite. In our study, young men in Wilmington, Delaware, who were given cash with no strings attached were actually less likely to undertake risky behaviors such as drinking alcohol, using marijuana, taking prescription medication without a prescription, getting into physical fights, carrying a weapon, or using a vapor product. By talking to participants after the intervention, we learned valuable lessons about what young people need in addition to cash to live long, safe, healthy lives.

Well, people have to do certain things to get money, so it could help them stop from doing other things that they would normally do. 

—Program participant

What did participants spend money on and what effects did it have?

The young men in our study were between the ages of 14 and 17 from families with low incomes and lived in high-crime neighborhoods. They were split into three groups. The first group received money on reloadable gift cards every week. The second group was offered an after-school program and received money on a gift card as long as they attended the first few sessions. The third group served as a comparison or “control,” and participants were able to take advantage of the programming after the completion of the study.

When asked about how they spent the money they had received, participants reported a variety of expenses. Some spent it on personal items and entertainment like clothes, video games, and activities such as amusement parks. Others reported using the money for necessities, such as helping out a parent with groceries or fixing a car. Some participants reported that they saved the money to reach goals such as purchasing a car or helping their family move out of their neighborhood and purchase a house.

Receiving the cash transfer alone led to an increase in healthy behaviors. Participants who received the cash transfer were less likely than the control group to do things like drink alcohol, use marijuana, take prescription medication without a prescription, be in a physical fight, carry a weapon, or use a vapor product. Some participants said they felt the extra money helped them to perform better in school by allowing them to buy supplies, and others felt that the cash alone helped reduce crime. We also found that the cash transfer plus programming improved the financial health of participants, which may be because the after-school programming included financial education.

Was the programming effective?

Beyond the benefits of the cash, the young men who were offered and attended the after-school program noted that having a safe, neutral space to go after school helped them stay away from the violence in their neighborhoods.

I don’t even go outside…literally I get in the car, go, come back…like a girl just got shot on the corner of my block...[my mom] was in the car when the shooting happened. 

—Program participant

In our survey, 39 percent of participants said there was at least some chance they would be killed by the time they turned 21, and 10 percent said the likelihood was about 50/50 or “pretty likely.” Programming, however, gave them a safe place to go to avoid getting into fights, seeing violence, or being harmed secondhand by the violence around them. The neighborhood in which programming was offered was far from the neighborhoods in which the young men lived and was considered a much safer part of town.

[In my neighborhood] it’s really a high chance that you’ll get in a fight. [Programming is different because] it’s in a more neutral area…What [kids] grew up around, they will become. 

—Program participant

Participants also highlighted parts of the curriculum they found valuable, including the math sessions, financial planning lessons, and Black history. Participants also felt that having after-school providers who had lived in high-crime areas and experienced what it was like themselves were the ones who could better relate to young people and effectively serve as mentors.

[The program provider] was really the one that can really help them ‘cause he was actually like that. He got experience. He was actually in the streets and he changed.

—Program participant

Supporting direct cash transfers and programming can help young men flourish

Young men from families with low incomes are not in their situations through any moral failing on their part. Rather, their environment and lack of opportunities often leads them to be exposed to and become victims of crime and violence. People who grow up in poverty also tend to attain less education and are less likely to hold a steady job as an adult than peers from families with higher incomes.

Our research is not alone in finding positive effects from cash transfers. Cash transfer programs have been shown to increase school enrollment, reduce poverty and crime, improve psychological well-being, and have lasting impacts on children. Ours is the first to show the positive benefits of direct cash transfers to young men in the US. To support these young people, policymakers and community practitioners can invest in similar initiatives, including direct cash transfers and safe programming options to help them flourish and live healthy, happy lives.