Micro-Income for Unhoused Youth: A Crisis Averted

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The Problem

Many young people today in the United States face housing insecurity which quite often leads to homelessness. For some of them, a missed payment, medical bill, or a sudden conflict within the family can trigger this spiral downward. Traditionally, safety net services are the solution but are often inadequate. Also, due to bureaucratic processes, by the time the help arrives, it is too late. Conventional interventions tend to happen usually after homelessness has already taken place, making recovery much harder.

Many youths are reaching the age where foster care isn’t an option. So where do go if they cant maintain there current living conditions? The next stop is family but unfortunately in most foster situations the original family wasn’t an option to begin with, and the problem doesn’t stop there. Often times, untreated mental health challenges keep them from completing school, or maintaining a job. This creates a rough start to adulthood. As a result thousands of young people find themselves in a critical spot trying to play catch up every year.

The Solution

Believe it or not, a solution is already in place. A foundation called the Schultz Family Foundation has already taken the initiative to pilot micro-income payments to youths experiencing a housing crisis. The program has begun its initiatives in 7 US states: California, Georgia Michigan, Arizona, New York, Texas, and Oregon. Payment amounts depend on location and need. The one time micro-income payment is accompanied by assistance with finding new housing and financial counseling.

Why it Matters

Schultz Family Foundation has seen very promising results with a 90 percent likelihood of the participants remaining housed after one month. The micro-payment can be spent on rent, securing a new home, and even allowing them to have time to focus on their education. Flexibility of the micro-income allows for them to pay for rent or secure housing, work on their education, or relocate for new opportunities.

Why You Should Care

The Schultz Family Foundation believes that intervention will lead to prevention. They are also given the chance to make their own decision on how the payment is spent. The program has allowed at-risk youths to escape crisis and long-term economic consequences. The proactive approach provides assistance to those before they are evicted, drop out of school, or lose their job. This is twofold as the foundation is ultimately bettering the community for the future by teaching them the skills to be successful adults.

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