Give cash or prepaid cards for youth stipends

About this recommendation

Older youth often rely on their stipends to cover food and basic necessities. Giving cash or prepaid cards, instead of store-specific gift cards, is more useful and will go farther for youth purchasing groceries and other necessities.

In a multi-state learning sprint with older foster youth, Think of Us found that when youth received Target gift cards, they often engaged in a complicated workaround: they purchased miscellaneous Target items, then returned them in batches to receive cash refunds in increments of $10. They then used that cash to buy food at other stores.

How to do this

  • Give youth cash.
  • Use direct deposit to distribute youth stipends.
  • Send payment with a cash app like Venmo or Cashapp. Allow youth to choose the app they’d prefer to receive funds in.
  • Give youth a prepaid cash card such as a Visa gift card, that can be used anywhere. Ensure that it has no transaction fees.
  • Provide youth with a gift card of their choosing.

Anticipated costs and benefits

Costs

Benefits


  • Free
  • Youth will be able to afford more food and necessities with the same stipend amount.