Exploring Financial Anxiety Among Aging Foster Care Alumni: Factors and Implications

Background and Purpose: Financial insecurity is a common issue that disproportionately affects individuals who have experienced poverty. Those with child welfare placements, in particular, are more exposed to poverty. However, despite significant investment in financial literacy initiatives for this population, financial anxiety has not been thoroughly examined or addressed. Understanding financial anxiety is crucial as it impacts various aspects of our lives, including where we live, what we eat, and how we socialize. This exploratory mixed-method study aims to investigate factors associated with financial anxiety among aging North American group care leavers.

Methods A correlational mixed-method study design was employed, involving a convenience sample of 41 group care leavers aged 30-85 a subset of 16 were selected for a narrative interview focused on documenting their life stories. Data were collected through a self-report Qualtrics survey, including typical demographic questions and inquiries about financial anxiety. The abbreviated Lubben Social Support Network Scale was also utilized. Participants were recruited via Facebook groups, with 88% being Canadian and 12% American. 30 identified as Caucasian, and 10 identified as racialized or Indigenous. There were 16 who identified as male, 23 as female, and 2 as non-binary Statistical analyses included Pearson’s R to explore associations between variables, while narrative interviews were analyzed using content analysis for financial-related topics.

Results Significant correlations were found between financial anxiety and several key factors. Notably, care leavers who experienced more frequent changes in child welfare placements reported higher levels of financial anxiety (r = .421, p = .007), as did those who spent more time in group care settings (r = .342, p = .039). Additionally, individuals from families with multiple generations involved in the youth protection system showed a correlation (r = .324, p = .044). However, those with larger social support networks reported lower levels of financial anxiety (r = -.447, p = .004). Surprisingly, higher levels of education were associated with greater financial anxiety (r = -.448, p = .003), while current income were not significantly correlated. Qualitative interviews further highlighted the complex nature of financial anxiety, with some individuals overspending and others hoarding financial resources, even with improved income.

Conclusions and Implications: These findings underscore the multifaceted nature of financial anxiety among child welfare-experienced adults. Measuring financial anxiety is crucial for understanding its holistic impact on individuals' lives and decisions. Surprisingly, income levels were not significantly associated with feelings of financial security, indicating ongoing struggles with feelings of financial insecurity even among alumni with above-average incomes. Researchers need to create financial anxiety measures focused on understanding this phenomenon in people with histories of poverty for clinical purposes. Foster care researchers and clinicians should account for financial anxiety in future financial literacy training initiatives. Furthermore, the clinical needs of aging foster care alumni need to be better mapped in the future.