Financial Incentives for Teen Parents to Stay in School

Financial incentives for teen parents are components of state welfare programs intended to encourage enrollment, attendance, and completion of high school as a means of increasing employment and earnings and reducing welfare dependence. The incentives take the form of bonuses and sanctions to the welfare grant related to school enrollment, performance, and completion. The programs typically provide case management and social services to supplement financial incentives. Two programs meeting WWC evidence standards were evaluated: Ohio's LEAP program provides $62 bonuses for monthly attendance and school year completion, $62 monthly sanctions for inadequate attendance, and a $200 bonus for high school completion or GED receipt. California's Cal-Learn program increases or decreases family support ($50 or $100) based on course grades and provides a $500 award for high school completion or GED receipt. Both programs target pregnant or parenting teens under age 19 or 20 who are receiving welfare and do not have a high school diploma or GED.