23,000 Kids Age Out of Foster Care Each Year. These 5 Financial Resources Can Help Them Transition

There are approximately 400,000 children in the U.S. foster care system. Not every youth who enters the system is reunited with their family or adopted. When this happens, they age out and become responsible for themselves. For many young adults, this significant life change causes added financial stress. Thankfully, there are financial resources out there to make the transition into adulthood easier.

20,000-plus youth age out of foster care each year

Many kids and teens spend time in foster care, but not all are matched with a stable, permanent family before adulthood. According to the National Foster Youth Institute, more than 23,000 children age out of the U.S. foster care system yearly.

While most states have policies extending foster care benefits beyond 18, not all do. Many foster youths are unprepared for life beyond foster care and are expected to take on adult responsibilities quickly. A study published in the American Journal of Public Health found that between 31% and 46% of participants had been homeless at least once by age 26.

While statistics like this are bleak, the good news is there are many resources available to foster kids who are about to age out of the foster care system. Below, we highlight a few resources that can help foster youth get the financial support they need to thrive.

1. Educational and Training Vouchers

The cost of higher education can be a burden for current and former foster youth. The Educational and Training Vouchers (ETV) program, made available through the John H. Chafee Foster Care Program for Successful Transitioning to Adulthood can help cover the cost of continued educational expenses.

ETVs are undergraduate grants made available through the federal government and administered by states. This program serves foster youth who experienced foster care at age 14 or older and those who exited the system after their 16th birthday. Interested students should contact their state's Child Welfare Agency to learn more about the program.

2. Foster Love's Rapid Response Program

Rapid Response, which Foster Love organizes, is a safety net program for college students with experience in foster care. The program addresses the challenges threatening former foster youth's ability to transition into college. Eligible students can get assistance with basic needs like educational expenses, housing, and meal assistance. Students can apply for support by contacting a college campus foster care support organization that partners with Foster Love or can contact Rapid Response to learn more.

3. Medicaid for former fosters

Health insurance is another costly expense, but former fosters may qualify for extended Medicaid healthcare benefits until they turn 26. The Support Act requires state Medicaid programs to cover former care youth up to age 26 who were in the foster care program at 18 and were enrolled in Medicaid while in foster care. There are no income requirements for coverage for former foster youth.

4. Independent Living Program

The Independent Living Program, which is available in many states, provides financial assistance and services to current and former fosters. Eligibility requirements vary by state, but former foster youth aged 16 to 20 qualify for assistance in many parts of the country. This program provides current and former fosters with the skills and resources needed to thrive independently in adulthood.

5. Foster Care to Success scholarships

The Foster Care to Success program provides undergraduate scholarships to eligible youth who were orphaned or spent time in the foster care system. Applicants can apply for scholarships worth $2,500 to $5,000 to help cover college education costs. The annual application period runs from Jan. 1 to March 31.

You don't have to navigate adulthood alone

You're not alone if you're in the foster care system or have already aged out. And you don't have to struggle without help. Don't be afraid to lean on resources like the ones mentioned above. Exploring state-run programs in your area is also a good idea, as many resources for former fosters are state-specific.

Learning more about important financial topics can also be helpful. If you're a former foster child, it's good to learn how to avoid expensive credit card debt, for example. Learning to manage your money well as soon as possible can set you up for greater success in adulthood. If you'd like to improve your financial knowledge, we have free personal finance resources available.