Building financial capability in youth transitioning from foster care to adulthood

Abstract

Financial capability is crucial for youth in foster care to develop prior to transitioning to independence. However, little is known about how these youth fare regarding financial capability. This study assesses whether youth in foster care in the United States who are over age 18 have better financial capability and related supports compared with younger youth and whether there are associations between supports and financial capability. Survey data from 97 youth aged 14 to 20 in foster care were analysed. Participants aged 18 and older had more advanced financial capability than younger youth on several indicators. Older youth were more likely to check in with caring adults about financial‐related issues and to have been enrolled in an independent living programme, both of which were associated with better financial capability. However, many youth over 18 were found to not have achieved financial capability in many areas. Older youth in care do appear to be making meaningful gains towards financial capability; however, more policy and practice enhancements are needed to fully prepare youth for independence.

Predictors of Identity Crime Victimization of Adolescent Youth in Foster Care

“…Despite the lack of available evidence, it is a common assumption that young people in foster care are disproportionately vulnerable to identity crime, as compared to their peers in the general population (e.g., California Office of Privacy Protection, 2011;Covington, 2019;ITRC, 2018a;Krebs & Harfield, 2011;Miller & Robuck, 2013;Social Security Administration, 2013;Wessler, 2014). Placement instability (i.e., frequent movement between different foster care placement settings) and lengthier spells in out-of-home care are commonly cited by child welfare advocates, scholars, government authorities, and journalists as risk factors for foster youth identity crime victimization (e.g., Aura, 2022;Clemente, 2010;Delgado et al, 2011;ITRC, 2018a;Miller & Robuck, 2013;Salazar et al, 2021;Social Security Administration, 2013;Wessler, 2014). As young people move through different foster care placement settings, their sensitive personal data typically passes through many hands and may become increasingly difficult to secure.…”

Pushed, Dropped, or Fleeing from Care: The Narratives and Adultification of Black Youth Who Have Aged out of Ontario’s Child Welfare System

“…For youth transitioning from care, financial literacy is imperative given the limited support and discussions surrounding finances (Salazar et al, 2021). Financial literacy is typically understood as the use of knowledge and skills to manage one's finances (Hastings et al, 2013; OACAS, n.d.).…”