Money Management

Money management is a skill necessary for self-sufficiency and includes an understanding of basic financial concepts (e.g., how interest on loans works and why a good credit score is important) and responsible money practices (e.g., putting money in one’s saving account when possible, planning monthly budgets).  Better money management skills have been linked to lower debt (Lea, Webley, & Walker,1995). Additionally, a recent study suggested that among foster youth in their last year of foster care, being able to secure financial resources for school and housing was something they did not feel entirely prepared to navigate after leaving care (Benbenishty & Schiff, 2009).

By ChildTrends 


Sources Cited

Benbenishty, R., & Schiff, M. (2009). Perceptions of readiness to leave care among adolescents in foster care in Israel. Children and Youth Services Review, 31(6), 662-669.

Lea, S. E., Webley, P., & Walker, C. M. (1995). Psychological factors in consumer debt: Money management, economic socialization, and credit use. Journal of Economic Psychology, 16(4), 681-701.