The Economics of Teenage Childbearing

"If successful, the New Mexico Department of Health’s Challenge 2005, to reduce teen pregnancy by 20% by 2005, would save New Mexicans about $43 million annually."

"The gross gain in economic well-being if teenagers were to delay parenting until at least age 20 or 21 is over $500 million annually, measured in 2000 dollars."

"Public assistance to families formed by teenagers in New Mexico creates a gross burden to taxpayers of nearly $300 million dollars annually over the burden created by families formed by women who delay childbirth (until age 21)."

"Teen mothers will earn less than half of the lifetime earnings of a woman who waits until at least age 20 to have a child."

'For New Mexico, approximately $216 million can be 'saved' each year by reducing teen pregnancy to zero."

'Every household formed by a teenage mother would gain $12,305 annually by delaying childbirth..."

From "The Economic Impact of Teenage Childbearing in New Mexico," by New Mexico Department of Health, July 2003

Prevention vs. Treatment

Reducing the nation's rate of teen pregnancy is one of the most strategic and direct means available to improve overall child well-being and, in particular, to reduce persistent child poverty.
Teen pregnancy is closely linked to a host of other critical social issues as well - welfare dependency, out-of-wedlock births, responsible fatherhood, and workforce development in particular. Preventing teen pregnancy should be viewed not only as a reproductive health issue, but as one that works to improve all of these measures. Simply put, if more children in this country were born to parents who are ready and able to care for them, we would see a significant reduction in a host of social problems, from school failure and crime to child abuse and neglect.
Helping young women avoid too-early pregnancy and childbearing and young men avoid premature fatherhood-is easier and much more cost-effective than dealing with all of the problems that occur after the babies are born.
A study estimating the cost-effectiveness and cost-benefit of one particular curriculum found that for every dollar invested in the program, $2.65 in total medical and social costs were saved. The savings were produced by preventing pregnancy and sexually-transmitted diseases. Kirby, D. (2001) Emerging answers: research findings on programs to reduce teen pregnancy. Washington, D.C. National Campaign to Prevent Teen Pregnancy.
Preventing teen pregnancy is far cheaper than not preventing teen pregnancy. About half of all mothers on welfare had their first child as a teenager, two-thirds of families begun by a young unmarried mother are poor, and teen parents and their children are less likely to graduate from high school.
Reducing teen pregnancy will strengthen the future U.S. workforce. Too-early childbearing often short circuits the education process and prevents young men and women from preparing themselves for good jobs.