Basic income helps parents afford toys, improves quality of life

Gonzalez could afford this purchase because she was participating in San Antonio’s Guaranteed Basic Income program. The pilot provided 1,000 low-income participants with an initial payment of $1,908 in December 2020, followed by eight quarterly payments of $400 between April 2021 and January 2023. Gonzalez was one of 25 participants chosen to receive an additional amount of $500 per month for 18 months until December 2024. .

For Gonzalez’s family, pilot income meant being able to move from a motel to a rental house and more comfortably put food on the table. And once her needs were covered, she had a little money left over to buy the kids something special: pencils and markers, Christmas presents and new shoes. She said it made her feel “worth something.”

“It makes you feel 100 percent better about yourself — seeing that you can meet the needs of your kids,” Gonzalez previously told Business Insider. “But when you can get a wish once in a while, it just puts it over the top.”

Like the San Antonio program, the general GBI model provides participants with recurring cash payments over a set period of time as an approach to poverty reduction. Participants typically receive between $50 and $2,000 per month, with no strings attached, for one to five years. More than 100 pilot projects have been launched in cities across America, many of them specifically focused on families.

Gonzalez’s experience echoes that of many other basic income participants: Cash payments not only provide a monthly financial boost, but allow some parents to afford toys and activities for their children — small purchases, they say, that have a big impact on them. the quality of family life.

Parents say buying their kids non-essentials improves quality of life

Unlike traditional U.S. safety nets like SNAP, housing vouchers, and Medicaid, Guaranteed Basic Income programs place no requirements on how participants spend their money.

“You decide what’s best for your family, you’re the expert on your family,” Gonzalez said. “Being able to use those funds in a way that puts you back in control: it builds your confidence.”

Participants BI spoke to mainly use their payments for essentials. A analysis of the 30 pilot programs involving nearly 8,300 participants, found that more than half of their payments went to food, transportation, housing, utilities, health care and education. The analysis reflects participants’ transactions made with a bank account or debit card, which accounted for approximately 60% of their total spending. The analysis did not track how participants spent cash.

While some GBI pilots study changes in participants’ happiness and mental health, those findings don’t specifically include how the extra things people bought for themselves or loved ones made them feel. To analyze the impact on quality of life, experts often look at individual anecdotes and qualitative findings, rather than just quantitative data on bill spending.

For some of the parents BI spoke to, the guaranteed basic income meant providing stable day care and a stroller to take walks around the neighborhood. Others told BI they used the money to buy a new cot and overalls for their newborn.

Melvin Cartermember of the advocacy network Mayors for a Guaranteed Income, said it can be difficult to fully capture quality-of-life improvements in one data set because benefits differ widely among participants. Still, he said it’s clear the cash aid has advantages.

“When parents have money to work with, kids are better off,” said Carter, who is also the mayor of St. Paul, Minnesota, formerly for BI.

Basic income afforded some families treats like dining out

Jeanette Fisher received $500 per month between summer 2022 and summer 2023 through the GBI program in Chicago. She mainly she used the money to pay bills and sign a lease for a new apartment for herself and her daughter.

But the 46-year-old single mom said she used part of her first paycheck to take her daughter, Sophia, to dinner and entertainment at Chuck E. Cheese. They hadn’t been to one of Sophia’s childhood birthday parties—it meant a lot to Fisher that they could celebrate together. It’s a memory they both cherish.

“He’s been through a lot,” Fisher previously told BI. “And she’s an amazing kid.”

Single mothers in the Birmingham, Alabama, Embrace Mothers basic income pilot had a similar experience. In addition to using their $375 a month to pay bills and afford childcare, many of the 110 mothers spent some of their their money on toys, dance lessons or holiday gifts for their children.

Monica, a Birmingham participant who used only her first name for privacy, spoke to researchers for the program’s final report, which was published on August 12. She said it was “amazing” to see her two-year-old daughter happy.

“As soon as I started getting the money, I started doing the surprise thing,” Monica told researchers. “So on the 15th I would take her to the Dollar Tree. And I’m teaching her the numbers, so I’d say, “Okay, Mom’s going to let you have five items today. Let’s see if you can count five. .”‘

To be sure, the guaranteed basic income may not be a foolproof approach to poverty reduction. GBI programs are temporary, and it is not yet clear how cash payments affect participants in the months and years after the programs end. Some economists and politicians have said the GBI is too expensive for cities and philanthropists to finance over time.

Not every family will spend the guaranteed basic income in the same way, Carter said. But — whether parents are spending money on meals, new shoes or something else — he trusts that they’re making the best decision for their family’s happiness.

“What we do is bet on families, bet on families that are used to being bet,” Carter previously told BI. “We are betting on the ability of families to know how to manage their money.”

Have you benefited from a guaranteed basic income program? Are you open to sharing your story? If so, contact this reporter at [email protected].