New study: Young parents with foster experience benefit greatly from cash assistance

Report, authored by The Reproductive Health Equity Project, a collaborative of public and private agencies led by the National Center for Youth Law, is the first to examine impacts of economic assistance on this particular population of California youth

A first-of-its kind report that examines the impacts of cash assistance programs on young parents with experience in the California foster system highlights several critical ways that youth benefited from this economic boost. It also reveals systemic problems that continue to hamper the physical and financial health and well-being of these parents and their children — offering a roadmap for building better supports.

"Cash Assistance and Other Benefits: The Experiences of Expectant and Parenting Youth (EPY) in California Foster Care," published today by the Reproductive Health Equity Project (RHEP), is the latest in a growing body of research that examines how expectant and parenting youth leverage benefits to navigate financial needs. This is the first study, however, to train its focus squarely on youth with current or prior involvement in foster care, a group particularly at risk of transitioning into parenting and adulthood without family support.

The report identifies several ways that youth benefited from cash assistance. Not only were the study's 14 participants better equipped to meet vital needs like housing and healthcare, but they were also able to improve their relationships and mental well-being while learning to manage finances and build savings. Importantly, the study also calls attention to the fact that many of the problems faced by these youth are systemic, offering insight into reforms that could improve the lives of youth, their children and their communities.

"A little support can go a long way," said Cindy Cruz, Director of the National Center for Youth Law's Reproductive Health Equity Project for Foster Youth (RHEP). "These young people were not only able to take care of pressing day-to-day needs for themselves and their families, but they were also able to mitigate harms created by financial insecurity and break cycles of poverty, which, for many of them, is the source of their system-involvement."

The study included youth ages 16 to 27 who were pregnant and/or parenting and had experience in the California foster system. The participants, many of whom are quoted within the brief, offered valuable reflections and insights into how cash benefits helped them both in the present and in preparing for their and their children's futures.

Among the key takeaways:

• The cash benefits allowed youth to meet their critical needs, such as housing, transportation and child care, as well as smaller basic needs like food, diapers, and hygiene products. Youth also reported that benefits helped them counteract unexpected financial shocks, such as unexpected housing challenges or changes in employment.
• Cash assistance helped young parents navigate and overcome inadequate health systems. Several youth lamented how their health insurance coverage would often change or fail to cover some visits, often resulting in them simply missing out on care. Extra cash allowed them to pay for better care and/or to dedicate more time to better understand and improve their healthcare options.
• The economic stability afforded by the cash programs improved participants' relationships and overall well-being. Not only did the additional funds lead to lower stress levels for participants, but they also afforded them greater autonomy and made them less reliant on others to meet their and their children's needs.
• The study highlighted how complex administrative processes often prevent youth from accessing needed benefits in other programs. More youth could be connected to potentially life-saving services with small reforms like simplifying eligibility criteria and offering clearer application and payment processes.

Each of these takeaways suggest that cash transfer programs not only help alleviate burdens associated with poverty, but enable recipients to invest, and participate, in opportunities that have lasting positive impacts for them and their families. 

"Despite the promising evidence of studies on cash assistance, there has been little exploration of the benefits of these programs on young parents, specifically among young parents with prior foster system experience," Cruz added. "Hopefully this study will lead to further research to expand our understanding of how cash transfer programs can support young parents and that this will lead to new and improved approaches that benefit youth and meet their needs."