Data that makes you think twice: The $12 experiment that upended decades of refugee aid philosophy
"Don't give money directly to youth – they'll waste it."
This outdated belief has dominated humanitarian aid for decades. Cash has typically gone to adult heads of households, under the assumption that youth lack the maturity to handle cash wisely.
But what if this "conventional wisdom" is actually just conventional bias? What happens when we flip the script and trust refugee youth with their own financial decisions?
The Taageero Cash program, a collaboration between the International Rescue Committee (IRC) and YLabs, reimagined cash assistance by giving funds directly to vulnerable youth aged 15 and older, including unaccompanied and separated children (UASC) living in Ethiopia's Sheder Refugee Camp.
Spoiler: Young people invested in their futures.
When youth have financial agency
The data from our pilot was striking: Youth who received modest cash transfers (500 Ethiopian birr, approximately $12 USD) consistently made thoughtful, responsible choices that prioritized both their immediate needs and long-term goals.
Their top spending priorities?
Education: School supplies, fees for tutoring classes, and school tuition
Clothing: Uniforms required for school attendance and basic clothing needs
Food: Nutritional support for themselves and their families
Hygiene: Essential personal care items, particularly important for girls
What stood out wasn’t only what they bought, but why they bought it. Their decisions reflected deep awareness of their aspirations, far from the stereotype of impulsive teenage spending.
Challenging the myths about youth and money
The Taageero Cash pilot surfaced a powerful truth: many assumptions about youth and financial responsibility simply don’t hold up.
Myth 1: Youth can't be trusted with money.
Reality: Youth as young as 15 demonstrated clear financial priorities and responsible spending patterns.
Myth 2: Youth will prioritize non-essential items or luxury items.
Reality: Education emerged as the top spending category across the board, with youth prioritizing investing in their futures.
Myth 3: Giving youth cash causes household tensions.
Reality: With intentional program design that included a separate cash stipend for the head of household, the cash actually contributed to stronger home environments.
Designing for youth autonomy
What made Taageero Cash effective? Creating with young people in Sheder, some key program design principles emerged:
Direct cash is best, within reason: Both caregivers and young people affirmed that the amount was sufficient. We identified the sweet spot—enough money to enable meaningful investments in education and wellbeing, while not making youth targets for theft or exploitation.
Financial literacy support: Even limited financial training boosted youth confidence and alleviated caregiver concerns about money management.
Local mentorship matters: While financial literacy programs are common in refugee settings, young people specifically requested guidance from trusted adults who understand their local context and challenges.
Implications for youth programming
The implications go far beyond Sheder Camp. If we want to build effective, future-focused programming, we must move from designing for youth to designing with them.
This means:
Trusting youth with real resources
Building programs that support autonomy
Creating feedback loops that elevate youth insights
For organizations designing youth-focused interventions, this implies a shift from programming for youth to programming with youth as full participants in their own development. The data shows that when given appropriate support, young people make choices that align with both immediate needs and long-term aspirations.
What's next?
At YLabs, we're committed to evidence-based, youth-driven design that challenges existing paradigms. The Taageero Cash pilot is just one example of how centering youth voices and choices can lead to more effective development outcomes.
As we continue designing for health, economic opportunity, and climate resilience, we’re holding this truth close: youth aren't a checkbox to include. They're the partners, and protagonists, with unique insights into their own needs, and hold remarkable capacity to shape their futures.
Ready to partner with us to help youth lead the way? Reach out to our team today!
