Financial literacy is the ability to understand and apply financial skills, including finance management, budgeting, and investing. It provides the foundation that youth need to become self-sufficient adults. Youth who have been in foster care often lack exposure to financial experiences, such as banking and budgeting, and may have less support from adults in learning money management skills. The following resources can be used by service providers and youth to prepare youth to navigate the financial marketplace and to set and reach financial goals.
AFI Toolkits: Training Video Series for Building Financial Capability: A Planning Guide for Integrated Services
U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services (2019)
Guides community-based organizations, including those serving youth, on how to provide financial capability services and how to integrate them into existing services relating to housing, job training, or Head Start. The guide presents a step-by-step process for developing an integration plan.
Building Blocks to Help Youth Achieve Financial Capability: A New Model and Recommendations (PDF - 1,612 KB)
Consumer Financial Protection Bureau (2016)
Examines how youth typically obtain critical attributes, abilities, and opportunities to support the development of financial capability and well-being.
Credit Building for Youth Aging Out of Foster Care [Webinar]
Prosperity Now (2019)
Presents the recording and slides from a webinar on credit-building services for youth transitioning out of foster care. The webinar covers lessons learned from the implementation of credit-building services and touches on resources organizations can use to build credit-building supports.
The Credit Check Requirement for Youth in Foster Care (PDF - 530 KB)
Child Focus and Credit Builders Alliance (2015)
Describes the Federal credit check requirement for youth in foster care, which requires child welfare agencies to provide credit reports to youth in foster care at age 16 and older to address any inaccuracies in their reports before they transition out of care.
Financial Capability & Literacy
youth.gov
Informs youth about the knowledge and skills needed to achieve and meet financial obligations and make wise financial decisions.
Financial Empowerment Toolkit
Youth.gov
Presents a financial toolkit caseworkers, foster parents, and other adults can use when working with youth in foster care as they prepare for financial self-sufficiency. Links to the toolkit and related tip sheets for youth in foster care are provided.
Good-Better-Best: A Youth Welfare Approach to Financial Literacy (PDF - 230 KB)
Capacity Building Center for States (2018)
Offers suggestions that caseworkers and others working with youth in foster care can use to assist them in applying for and receiving a credit card. Suggestions are provided on a continuum from good to better to best solutions.
Helping Youth Achieve Financial Literacy
ACT for Youth Center for Community Action (2020)
Provides resources, activities, and curricula to help teens ensure they have the skills and knowledge to manage their finances and achieve financial literacy.
Helping Youth in Foster Care Start and Maintain Good Credit (PDF - 146 KB)
Consumer Financial Protection Bureau (2019)
Provides information for organizations working with youth in foster care on how to check to see if youth have a credit report, what to do if there is an error on a credit report or evidence of identity theft, and more information related to maintaining good credit.
I'm a Caseworker for Youth in Foster Care. What Should I Do if There is an Error on a Credit Report or Evidence of Identity Theft for a Youth in Foster Care?
Consumer Financial Protection Bureau (2018)
Reviews steps child welfare professionals can take to correct errors on credit reports for youth in foster care and what to do in situations of identity theft.
The Keys to Your Financial Future Curriculum
The Annie E. Casey Foundation (2019)
Builds the financial knowledge and skills of youth to enable them to take on more financial responsibilities. The resource includes participant guides and facilitator guides.
Money as You Grow: Teenagers and Young Adults
Consumer Financial Protection Bureau
Presents a financial curriculum for young people, including those transitioning out of the foster care system, to learn financial literacy. The curriculum aims to empower youth to be able to make smart financial decisions as they enter adulthood. This resource includes a participant guide and facilitator guide.
Older Youth Housing, Financial Literacy and Other Supports
National Conference of State Legislatures (2020)
Outlines State laws and policies relating to providing support for youth transitioning out of the foster care system. The resources can be sorted by topic areas, which include a section on financial literacy.
The Opportunity Passport: Building Assets for Youth Aging Out of Foster Care
Annie E. Casey Foundation (2009)
Explains the Opportunity Passport program, which helps youth learn financial literacy when transitioning out of foster care and into adulthood. The program allows youth to practice the financial skills they need to function as successful adults. The webpage also links to resources on building financial capability and credit checks.
Starting Strong: Credit Building for Youth Transitioning From Foster Care (PDF - 2,652 KB)
Wadibia, Sankar-Bergmann, & Medina (2018)
Prosperity Now
Presents an overview of lessons learned about credit building for youth in foster care or youth transitioning out of care. The guide is meant for caseworkers and youth-serving organizations to use when planning new programs and services for this population.
Supporting Youth Transitioning Out of Foster Care: Issue Brief 2: Financial Literacy and Asset Building Programs
Edelstein & Lowenstein (2014)
Urban Institute
Provides an overview of financial stability for youth in foster care. This brief describes existing financial literacy and asset-building programs as well as considerations for the field when supporting youth.
Supporting Youth Transitioning Out of Foster Care: Issue Brief 2: Financial Literacy and Asset Building Programs
U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research and Evaluation (2019)
Provides an overview of financial stability for youth in foster care. This brief describes existing financial literacy and asset-building programs as well as considerations for the field when supporting youth.
Teaching Your Foster Teen Financial Responsibility
Mabrey (2016)
Embrella
Offers tips for foster parents on teaching financial literacy to teens in their care. The article reviews the importance of teaching budgeting and saving, describes how to teach teens to make wise financial decisions, and discusses credit cards and identity theft.
Your Money, Your Goals Toolkit
Consumer Financial Protection Bureau
Equips case managers and other frontline staff to help their clients set goals, choose financial products, and build skills in managing money, credit, and debt.
Youth Financial Education
Consumer Financial Protection Bureau
Includes close to 200 online financial activities for middle school- and high school-aged youth. The free activities explain the basics of financial literacy, such as budgeting and building healthy financial habits.