The conventional meaning of the SHELL environment variable is the user's favorite interactive shell. There is no obligation that it has any particular syntax (it doesn't have to be Bourne-like), that it supports any particular command line syntax (such as -c), or that it has anything to do with the login shell (applications that use SHELL typically default to the login shell if SHELL is unsed). It's mostly used by terminal emulators as the program to run by default.
If you log in in text mode (on a text console or over SSH), what you get is the login shell listed in the user database (e.g. /etc/passwd). When you open a terminal in a GUI environment, you get the shell specified by the SHELL environment variable if the variable is set. If you want the same shell for text mode logins, either change your login shell with chsh, or make your login shell switch to your favorite shell with exec.
Occasionally you might encounter a program that uses $SHELL -c instead of sh -c to execute code in sh syntax. But that's pretty rare. It's technically allowed by POSIX, but it would violate historical usage. In practice, setting SHELL is safe. I've had my login shell set to /bin/sh and SHELL set to /path/to/zsh on most machines for about two decades.
/usr/local/bin/bashin/etc/passwd? – John1024 Aug 10 '17 at 22:25/usr/local/bin/bashin your/etc/shells? If not run this:sudo bash -c 'echo /usr/local/bin/bash >> /etc/shells'. Also just for solidarity make sure you have followed the steps in this guide for your upgrade: http://clubmate.fi/upgrade-to-bash-4-in-mac-os-x/ – jesse_b Aug 10 '17 at 22:26/etc/shells? That file is only used bychsh, unless macOS does something unusual. – Gilles 'SO- stop being evil' Aug 10 '17 at 23:11/usr/local/bincompared to/usr/binin yourPATH? – thrig Aug 10 '17 at 23:27chshand a few other system services that are relatively uncommon these days. The point is, it's only used to check the user's current login shell. It has nothing to do with theSHELLenvironment variable. – Gilles 'SO- stop being evil' Aug 10 '17 at 23:45SHELLvariable is set by the/etc/passwdfile, however in mac it is not. So in mac the correct way to set your default shell is with thechshcommand we can't stop talking about anyway. – jesse_b Aug 10 '17 at 23:52SHELL=/usr/local/bin/bashYou are setting a shell variable. In order to make it an environmental variable you would need to do:export SHELL=/usr/local/bin/bash– jesse_b Aug 11 '17 at 00:44/etc/shellswhen I did the upgrade. I think I referenced that same page you linked ;) – ivan Aug 11 '17 at 16:53/etc/passwdcorresponding to my user, I'm guessing because I'm on macOS. From the other comments it sounds like that also relates to the use of/etc/shellswhen doing this on mac – ivan Aug 11 '17 at 16:57exportin my original post. I'll update... – ivan Aug 11 '17 at 16:59