OpenResearch Study Finds Unconditional Cash Transfers Lead to Clear Improvements in Parenting Quality

New research shows direct cash payments reshaped caregiving among low-income families, enabling more attuned, consistent, and emotionally present parenting

SAN FRANCISCO--(BUSINESS WIRE)--A $1,000 monthly unconditional cash transfer over three years led to clear improvements in parenting quality, according to new research published today by OpenResearch, a nonprofit research lab. Researchers found that parents in low-income families spent more on their children each month and reported better parenting behaviors, such as supervising their children more closely.

The findings stem from the most comprehensive unconditional cash transfer study in the US – a randomized controlled trial (RCT) in which 1,000 participants received $1,000 per month for three years, and 2,000 received $50 per month over the same time period. Direct cash payments’ impacts on parenting and children are explored in the latest analyses from OpenResearch, which has previously published reports exploring the effect of cash on agency, employment, politics and more.

The new research found that parents who received the transfer spent more on their children and reported improvements in caregiving—especially among the lowest-income and single-parent households. Survey data showed increased supervision and more consistent discipline, while interviews revealed that greater financial stability helped parents become more emotionally present and responsive. These shifts suggest that unconditional cash can influence not just spending, but how families experience and navigate parenting.

"Our research reveals that unconditional cash affects parenting in ways that are both significant and subtle. We documented clear behavioral changes, but also areas where impacts were limited or required deeper interpretation,” said Elizabeth Rhodes, research director at OpenResearch. “This complexity is precisely why we need large-scale, methodologically rigorous studies – to move beyond assumptions and generate the nuanced evidence that effective policy requires."

Student academic outcomes showed little measurable change during the study period, but parents who received the transfer were more likely to notice behavioral and emotional challenges in their children—a pattern that may reflect greater parental presence and attentiveness rather than a deterioration in behavior.

"Cash transfers function as more than income supplements – they create the psychological and economic safety net that allows many parents to optimize for family well-being rather than just survival," said Rhodes.

To read more on OpenResearch’s latest findings, visit www.openresearchlab.org/findings.

About OpenResearch

OpenResearch is a nonprofit research organization with a startup mentality. The research lab exists to support the development of scientific research and innovation. Drawing on the strengths of traditional academic research and the creativity and problem-solving characteristics of startups, OpenResearch asks big, open-ended questions and gathers comprehensive data to fill pivotal knowledge gaps. To learn more, visit openresearchlab.org.