Financial Capability and Mental Health Among Youth Aging Out of Foster Care

ABSTRACT Using secondary data from the Annie E. Casey Foundation's OPPS JCYOI, we examined the relationship between financial capability and mental health outcomes among 2635 young people aged 14–26 with current or prior out‐of‐home care experience. Key findings indicated that financial capability was a protective factor for mental health, whereas owing money and holding multiple jobs were linked to worse mental health and higher unmet service needs. While 69% reported that their health insurance covered mental health services, 15% did not. Over half (54%) had a paid job, and 44% were enrolled in school. Notably, female and LGBTQIA+ individuals, along with those facing financial hardship, reported lower mental health ratings and greater unmet service needs. The results underscore the urgent need for financial education and support programs for this population, suggesting that economic stability can safeguard against mental health challenges. Integrating financial capability education and resources into transition services and postcare supports could improve mental health outcomes and decrease disparities in service access.