Examining Prevalence and Predictors of Economic Hardships for Transition-Age Foster Youth

Background and Purpose: Older youth exiting foster care experience high rates of poverty, homelessness, and food insecurity (Dworsky, 2005; Berzin et al. 2011; Goldrick-Rab et al. 2017). Despite these heightened risks, there is little evidence documenting experiences of economic hardships (e.g., being unable to afford utilities) that may be precursors to or symptoms of these poor outcomes. Moreover, few studies have examined risk and protective factors associated with foster youth’s economic hardship experiences. This study investigates the prevalence of foster youths’ economic hardship in early adulthood and the factors that predict these hardships.

Methods: We analyze data from the four waves of CalYOUTH interviews linked to child welfare administrative data. The outcome variable is binary measure (1=yes, 0=no) of whether the youth experienced at least one of six hardships (e.g., not enough money for clothes/shoes, enough money for rent/mortgage) in the year prior to interview. The outcome measure was created for participants at three ages: age 19 (n=611), age 21 (n=616), and age 23 (n=622). We ran three separate logistic regression models to examine predictors of hardship at each of the three ages. The predictors in each model were measured at the previous interview wave (e.g., age-19 predictors were used in the model for age-21 hardships). Predictors included youth characteristics (e.g., demographics, foster care history, behavioral health problems), as well as characteristics of the youth’s supervising foster care county (e.g., availability of independent living services). Missing data was addressed by multiple imputation.

Results: About a half of youth experienced at least one economic hardship at 19 (52%), 21 (49%), and 23 (48%). Not enough money for clothes/shoes was the most frequently reported hardship (35% at 19, 35% at 21, 31% at 23). Fewer, though substantial, numbers experienced eviction (4% at 19, 9% at 21, 9% at 23) or gas or electricity shut off (7% at 19, 8% at 21, 8% at 23). Regression results show that youth with mental health or substance use disorders had higher odds of experiencing economic hardship at 21 (OR=2.24; p=.001) and 23 (OR=1.72; p=.011). Youths with minority sexual identities were significantly more likely to experience hardship at age 19 (OR=1.94; p=.012) and marginally significantly more likely at age 21 (OR=1.75; p=.054). Youth ever placed in group care before age 18 were more likely than their peers to experience hardship at age 21 (OR=1.81, p=.017). at least 6 months in extended foster care decreased the odds experiencing economic hardship at age 19 (OR=0.84; p<.001).

Conclusions and Implications: These findings identified sexual minority youth and youth with behavioral health needs as being at increased risk for economic hardship, and these young people may require additional support to reduce hardships. Extended foster care was found to play a protective role in reducing the odds of hardships at age 19, but not at ages 21 or 23. EFC may be most protective while youth are still in care. Our study calls for future mixed-method and longitudinal studies to increase our understanding of the mechanisms linking predictors to hardship.