Making the transition: How asset building services can promote positive adult outcomes for foster youth

Abstract

Foster youth in the U.S. often face a multitude of adverse outcomes, including low educational attainment, elevated rates of adult poverty, and disproportionately high levels of adult homelessness. One newer area of social policy research and advocacy, asset building, may help explain some of these disparities. Foster youth face several barriers to asset building. For example, many youth have several placements during their stay in care, resulting in youth receiving inconsistent schooling, mentoring, and support, and facing limited opportunities to work, save money, or build academic and professional networks. This paper examines the frequency with which transition-age foster youth receive asset building services and whether the youth who receive services experience improved outcomes compared to those who do not. Analyzing data from the National Youth in Transition Database and using a Propensity Score Matching methodology, this study finds that youth receiving Budgeting and Financial Education Services and Post-Secondary Education Services experience significantly improved outcomes, including reduced likelihood of homelessness and increased likelihood of employment and educational enrollment. However, only 29% of youth receive Budgeting and Financial Education Services, and only 19% of youth receive Post-Secondary Education Services. Service receipt also covaries with demographics, including race/ethnicity and education level. These findings have noteworthy implications for both policy and practice as asset building for foster youth is a potentially promising realm for public service expansion.