The Nauru government, worried at truancy in schools, says a new incentive of paying children to stay in class is working.
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The government is paying all children, from pre-schoolers through to grade 12, US$3.80 each day they attend school.
The education minister, Charmaine Scotty, said the Nauru Education Assistance Trust Scheme has already led to a sizeable reduction in truancy since the initiative began earlier this month.
She said responsible spending will be monitored with the saved money being used for beneficial purposes, such as starting a business or buying a home, once they finish school.