Financial Capability and Mental Health Rating Among Youth Aging out of Foster Care

Background and Purpose: Youth in out-of-home care due to child maltreatment are at increased risk for mental health concerns yet experience service gaps when seeking mental health care that persist when youth age out of care. Transition-aged youth (TAY) are also faced with a lack of access to financial knowledge, resources, and opportunities compared to their peers which can exacerbate mental health concerns and service access. The current study aimed to increase our understanding of how financial capability relates to mental health among TAY to support the development of interventions to improve mental health.

Methods: This secondary analysis utilized data from the Opportunity Passport Survey collected by the Jim Casey Youth Initiative, a longitudinal study that involves 16 sites in the United States developed to assess the needs of youth aged 14-25 with foster care experience. The current study utilized data from 2020 and included 2,635 youth. Key independent variables included financial capability and financial hardship. The dependent variables for this study were unmet mental health needs and youth’s current mental health. Covariates included current placement in out-of-home care, age, gender, race, ethnicity, and LGBTQ identity. The study utilized bivariate tests and two multivariate models. Model 1 tested the association between financial capability and hardship with mental health rating. Model 2 tested the association between financial capability and hardship with unmet mental health service needs.

Results: At the bivariate level, youth who indicated financial hardship had lower self-ratings of mental health and higher rates of unmet service needs. Health insurance coverage for mental health services was associated with lower rates of unmet service needs. Youth who reported holding two or more jobs had higher self-ratings of mental health, however reported higher rates of unmet service needs.

At the multivariate level, financial hardship had a significant negative association with self-ratings of mental health, while financial capability had a significant positive association with self-ratings of mental health. Model 2 found that financial hardship was a significant predictor of higher odds of having unmet mental health service needs. Financial capability was significant predictors of lower odds of having unmet mental health service needs, with the exception of employment. Youth who reported having two or more jobs had significantly higher odds of reporting unmet mental health service needs.

Conclusions and Implications: Results highlight the critical link between financial stability and mental health for TAY. Further, the association between insurance coverage for mental health services and service access underlines the critical role of health insurance in reducing service gaps for TAY. The finding that holding multiple jobs decreased service access may suggest an increase in demands on youths’ time and increased stressors that reduce the likelihood that youth can access the mental health care they need.