Foundations For Success: Former Foster Youth Pioneering Pathways To Independence Through Innovative Support

Forbes

01-05-2025

Written by Jayme Catalano, Director of Communications, First Place for Youth
A new study evaluating San Francisco's "Foundations for the Future" guaranteed income pilot program is revealing both significant challenges and promising opportunities for young adults transitioning from foster care. While many participants face housing insecurity and financial hurdles, this innovative approach providing $1,200 monthly payments represents a potential turning point in how we support youth building independent lives. The program's comprehensive evaluation offers valuable insights for creating more effective support systems that can empower former foster youth to achieve stability and success.
Photo courtesy of First Place for Youth
The March 2025 Chapin Hall study of San Francisco's "Foundations for the Future" guaranteed income pilot program paints a troubling picture of life after foster care. The program provides monthly payments of $1,200 to young people who recently aged out of extended foster care, yet the baseline data reveals persistent struggles: 70% of participants frequently worry about paying bills, 40% experienced homelessness in the past year, and 70% face food insecurity.
These aren't just statistics; they represent real young people attempting to build independent lives without the family safety nets most take for granted. The study follows 150 young adults who aged out of San Francisco's extended foster care system after January 2022, capturing a comprehensive snapshot of their circumstances before receiving guaranteed income payments.
"What strikes me is that most of these youth are eligible for CalFresh but not all are taking advantage of this resource," notes Matt Levy, Vice President of Evaluation and Learning at First Place for Youth, an organization providing housing and support services to former foster youth. "It also speaks to the need for effective financial literacy supports, given how many youth are struggling with bills and past debt."
The finding that 40% of study participants experienced homelessness within the past year should alarm policymakers and child welfare advocates alike. This statistic becomes even more concerning when considering that 28% reported not having enough money to pay rent, and 22% reported staying in unsafe housing situations because they couldn't afford to move.
Transitional Housing Program-Plus (THP-Plus), California's housing program for former foster youth ages 18-25, provides up to 36 months of housing and supportive services. However, the study results suggest that either current program capacity is insufficient or barriers to access remain substantial.
THP-Plus offers more than just housing—it provides a supportive environment where young adults can develop independent living skills while pursuing education and employment goals. When properly implemented, it creates the stability necessary for youth to focus on building careers and financial security rather than merely surviving. But with 40% of former foster youth experiencing homelessness despite this program's existence, significant gaps clearly remain in the system. This only underscores the importance of supplementing programs like THP-Plus with new Guaranteed Income pilots like this one that aim to fill those gaps.
The financial circumstances revealed in the study are equally troubling. Only 18% of participants reported being able to afford a $400 emergency expense. While 75% had bank accounts, nearly half of those had zero dollars in them. About half reported having debt, and among those with debt, 70% were behind on payments.
"This highlights a critical gap in how we prepare young people for independent living," explains Levy. 'Financial literacy isn't just about understanding bank accounts—it's about building the skills to budget, save, manage credit, and plan for the future. Many former foster youth have rarely had role models to support them here.'
Financial literacy for foster youth isn't a luxury—it's a necessity. Without family support networks to fall back on, even small financial setbacks can lead to catastrophic consequences including homelessness, food insecurity, and deteriorating mental health. The study found that 38% of participants didn't have enough money to pay a bill in full or on time in the past year, demonstrating how financial precarity permeates daily life for these young adults.
Perhaps most concerning is the disconnect between need and resource utilization. While 70% of study participants were food insecure—and half reported not eating sometime during the past year because they couldn't afford food—only 27.3% were enrolled in CalFresh, California's Supplemental Nutrition Assistance Program.
This participation gap represents a significant missed opportunity. CalFresh can provide up to $250 monthly for groceries, which could substantially help to alleviate food insecurity among this population.
The San Francisco guaranteed income pilot program represents an innovative approach to supporting former foster youth. Its $1,200 monthly payments may help address immediate financial needs, but the baseline data reveals that deeper, systemic interventions are also necessary.
"These young people have already faced significant challenges in their lives," Levy reflects. 'Our systems should be designed to provide them with the support they need to thrive, not just survive.'
As a society, we have both a moral obligation and practical interest in ensuring former foster youth have genuine opportunities for success. The economic and social costs of continued housing instability, financial insecurity, and food insecurity far outweigh the investments needed to provide effective support services. The Chapin Hall study should serve as both a wake-up call and a roadmap for addressing this invisible crisis before another generation of former foster youth falls through the cracks.
Be sure to look for updates from Chapin Hall as they continue to evaluate the guaranteed income pilot program in San Francisco.