By The Numbers: The Public Costs of Teen Childbearing

By The Numbers: The Public Costs of Teen Childbearing

This Presentation Will Cover: • Why Care? • The Costs of Teen Childbearing

Why Care?

We’ve Made Progress National Teen Pregnancy Rates, 1972-2002 (number of pregnancies per 1,000 girls aged 15-19) After increasing 23 percent between 1972 and 1990 (including 10 percent between 1987 and 1990), the teen pregnancy rate for girls (15-19) decreased 36 percent between 1990 and 2002 to a record low. The Alan Guttmacher Institute. (2006). U.S. Teenage Pregnancy Statistics National and State Trends and Trends by Race and Ethnicity. New York, NY: The Alan Guttmacher Institute.

More to Feel Good About National Teen Birth Rates, 1940-2005 (number of births per 1,000 girls aged 15-19) From 1940 to 1957, the teen birth rate increased 78% to a record high. The birth rate dropped fairly steadily from the end of the 1950s through the mid-1980s, but then increased 23% between 1986 and 1991. Between 1991 and 2005*, the teen birth rate decreased 35% to a record low of 40.4 in 2005. *Data for 2005 are preliminary. Ventura, S.J., Mathews, T.J, & Hamilton, B.E. (2001). Births to Teenagers in the United States: 1940-2000. National Vital Statistics Reports, 49(10).; Hamilton, B.E., Martin, J.A., & Ventura, S.J. (2006). Preliminary Data for 2005. Health E-Stats. Released November 21, 2006.

But There is More Work to Do • One in three teens becomes pregnant by age 20. • One-quarter of teen parents have a second child before they turn 20. • Higher teen pregnancy and birth rates than comparable countries. • Recent data show declines in teen birth rates are slowing.

Teen Pregnancy’s Link to Poverty and Other Social Issues • What are the chances of a child growing up in poverty if his/her mother: (1) gave birth as a teen, (2) was unmarried when the child was born, and (3) did not receive a high school diploma or GED? • 27% if one of these things happen. • 42% if two of these things happen. • 64% if three of these things happen. • If none of these things happen, a child’s chance of growing up in poverty is 7%. • A child born to a teen mother who has not finished high school and is not married is nine timesmore likely to be poor than a child born to an adult who has finished high school and is married. Source: Why It Matters, National Campaign

Consequences of Teen Pregnancy • Only 40% of young teen mothers graduate from high school. • Teen fathers earn less than older fathers (20-21). • Compared to children born to older mothers (20-21 years old), children born to teen moms are more likely to: • to drop out of high school. • to use Medicaid and SCHIP. • to experience abuse/neglect. • to enter the foster care system. • to end up in prison (sons).

The Costs of Teen Childbearing

Why We Did This Analysis • A classic example of offering many ways to see the importance of teen pregnancy: • human face • effect on mother • effect on child • poverty, welfare dependence, etc. • taxpayer cost

An OverviewBy The Numbers: The Public Costs of Teen Childbearing • Project goal: Measure the costs that could be averted if teen mothers, 19 and younger, delay their first birth to 20-21 years old. • What is the impact on the young mother and her child’s subsequent life outcomes and what does this cost taxpayers? • Both national and state-specific cost estimates have been measured.

Costs Included in the Analysis • Costs linked to teen moms • Public assistance • Lost tax revenue • Costs linked to the children of teen parents • Lost tax revenue • Public Health Care • Incarceration of sons • Child welfare • Costs linked to teen fathers • Lost tax revenue

National Findings • Teen childbearing costs taxpayers at least $9.1 billion annually. • Total cost breakdown is $8.6 billion for 17 and younger and $0.5 billion for 18-19 year olds. • Average annual public sector cost associated with a child born to a mother aged 17 and younger is $4,080.

National Findings • Most of the costs of teen childbearing are associated with negative consequences for the children of teen mothers and include: • $1.9 billion for increased public sector health care costs • $2.3 billion for increased child welfare costs • $2.1 billion for increased costs for state prison systems (among adult sons of teen mothers) • $2.9 billion in lost tax revenue due to lower taxes paid by the children of teen mothers over their own adult lifetimes.

National Findings: Cumulative Costs and Savings • Between 1991 and 2004, there have been more than 6.7 million teen births in the US. • This cost taxpayers a total of $161 billion between 1991 and 2004. • The one-third decline in the teen birth rate between 1991 and 2004 yielded substantial cost savings. • Taxpayers saved $6.7 billion in 2004 alone.

National Findings: Cumulative Costs and Savings • There were approximately 6.8 million teen births in the United States between 1991 and 2004. The estimated cumulative public costs of teen childbearing during this time period are $161 billion.

Costs for the Children of Teen Mothers • Children of teen mothers are more likely to: • Have decreased educational attainment • Earn less money • Suffer high rates of child abuse and neglect • Grow up poor • Live in single-parent households • Enter the child-welfare system • Become teen mothers themselves

Cumulative Costs and Savings For more information: www.teenpregnancy.org/costs

What Can You Do? • Recognize the problem isn’t solved. • Help parents. • Support proven teen pregnancy interventions. • Support youth programs more broadly. • Set a goal.

Thank You! Please visit our website at www.teenpregnancy.org

By The Numbers: The Public Costs of Teen Childbearing