Guaranteed Income As a Tool to Strengthen Financial Capability and Decision-Making Among Single Mothers with Low Incomes

Background and Purpose

Guaranteed income (GI) has gained traction in the United States as a way to increase economic security by providing income to supplement earned income and public benefits. GI is often targeted toward specific groups based on need and consists of direct cash payments that are consistent, unconditional, and unrestricted. Because of the flexibility, GI is thought to meet the unique and evolving needs of individual households. In November 2024, a grassroots collective launched the Ohio Mothers Trust, which provided 32 single moms in Columbus, Ohio, with a one-year GI of $500 a month. This paper describes the participants’ perspectives on how the guaranteed income was related to their financial capability and financial decision-making.

Methods

All participants were invited to complete an interview six months after their initial payment. Aligning with the unconditionality of GI, participation in interviews was voluntary and did not impact their involvement in the Ohio Mothers Trust. Ultimately, 17 participants completed a semi-structured interview. The interviews included questions about basic and material needs, economic stability, and navigating financial emergencies. Interviews were conducted by phone and lasted between 30 minutes and an hour. Participants received $75 after completing the interview.

All interviews were recorded and transcribed. We used a team-based, structured approach to thematic analysis. Two coders independently completed a summary table for each transcript and identified illustrative quotes for each summary. We synthesized these summaries by looking for patterns to build themes.

Results

All participants were single mothers with children between the ages of one and 26. Eleven of the 17 participants were employed, and those who were unemployed shared that they were unable to work due to a disability or were caretakers either to younger children or children with disabilities.

We identified three themes related to financial capability and decision-making. First, participants described becoming budget-conscious and mindful about spending. Participants shared that the additional income allowed them to put budget knowledge into practice. Second, participants described focusing more on saving when possible. While saving money was not always possible for participants, nearly all described it as a goal, and many had explicit steps to make saving possible. Lastly, participants shared that they were moving beyond relying on credit cards and, instead, were paying down credit card debt. Many participants shared that they previously relied on credit cards both for emergencies and to meet day-to-day needs. However, since receiving the GI, they no longer used credit cards to meet basic needs and were paying down their credit card debt.

Conclusion and Implications

These findings demonstrate that guaranteed income strengthened financial capability by enabling participants to enact budgeting skills, prioritize saving, and reduce reliance on credit. Rather than prompting irresponsible spending, additional income increased intentionality in everyday financial decisions. Participants moved from survival-based credit use toward greater stability, including paying down debt when possible. These results suggest that limited income, not financial knowledge, restrict financial capability, and that cash support like GI can play a meaningful role in promoting financial decision-making and household economic security.