A guaranteed income pilot program providing youth transitioning out of foster care a monthly stipend is serving more than 50 individuals, increasing their ability to pay expenses, save money, and learn financial literacy, according to a report to the San Mateo County Board of Supervisors.
Serving current and former San Mateo County foster youth ages 18 to 22, the guaranteed income pilot is an 18-month period providing qualified individuals $1,000 a month, as well as optional financial literacy counseling.
A survey gauging the impact of this monthly stipend on the financial and physical health of participants after six months demonstrated there has already been significant improvements in young people’s ability to cover monthly expenses, the Board of Supervisors learned at its meeting Feb. 25.
After six months of receiving the monthly stipend, fewer individuals skipped meals and more felt they were able to buy fresh food or healthy meals. Trends also showed more individuals managing to get by, have money left over, or even enough to save, Amy Yun, Children’s Services program manager, said.
“What has been demonstrated so far, is that there has been a significant improvement in young people’s ability to be financially self-sufficient, and a substantial decrease in young people getting into debt because of not being able to make ends meet,” Yun said.
Outside of statistics, survey interviews showed that the monthly stipend has granted participants the opportunities to focus on postsecondary school and other life goals, Yun said.
“One youth reported he is saving all of his GI money toward a down payment for a house, so they’re able to dream big now.” Yun said.
Since the pilot period began in May 2024, 46 individuals have received $10,000 each thus far. Newly eligible individuals are enrolled on a rolling basis as they turn 18 years old, and the pilot program will ultimately serve 62 individuals by the time the pilot period is over this November.
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To enroll in the program, each person must attend a mandatory orientation and has access to optional benefits counseling and financial mentoring services.
“Our young people have demonstrated a genuine interest in improving their financial literacy,” Yun said. “To date, a total of 150 hours of benefits counseling have been provided to the GI program participants.”
However, there has been minimal engagement in the optional services provided through the program. While, philosophically, the guaranteed income program was imagined to encourage self determination, the Human Services Agency will be working to incentivize more participation, John Fong, director of Children and Family Services, said.
Supervisor Noelia Corzo made note that while incentivizing participation can ultimately help these young people in the long run, giving them the grace to figure it out is also important.
“While we do want to incentivize and support them to be self-sufficient, it’s also age appropriate for them to make mistakes and have support throughout that difficult time of figuring out who you are and becoming an adult,” Corzo said.
The Foster Youth Guaranteed Income Pilot Program was approved in July 2023 by the Board of Supervisors and is a pilot period lasting between May 2024 and November 2025.
In addition to the concrete financial support provided through this program, Fong and Yun said they are looking at all social determinants, such as access to health care and employment readiness, as ways to improve the health outcome of foster youth.
“These young people are part of this system through no fault of their own, and the odds are stacked against them,” Fong said. “It is programs like this, the provision of concrete supports that can start to move the needle, but it needs to be just one arrow in the quiver.”
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