WASHINGTON—New Federal Reserve research shows a “strong connection” between childhood poverty and the economic challenges children face as adults, Fed Chairwoman Janet Yellen said Thursday.
Speaking at a Fed conference on children’s economic futures, Ms. Yellen said a recent Fed survey showed roughly one in 10 people ages 25 to 39 regularly worried about having enough food to eat, having a stable caregiver or about their personal safety as children. An additional 19% sometimes worried about those issues.
Among...
WASHINGTON—New Federal Reserve research shows a “strong connection” between childhood poverty and the economic challenges children face as adults, Fed Chairwoman Janet Yellen said Thursday.
Speaking at a Fed conference on children’s economic futures, Ms. Yellen said a recent Fed survey showed roughly one in 10 people ages 25 to 39 regularly worried about having enough food to eat, having a stable caregiver or about their personal safety as children. An additional 19% sometimes worried about those issues.
Among those who regularly worried, more than half said they are currently struggling to get by financially, she said.
“Broadly speaking, children who grow up in insecure circumstances, those often experienced in poverty, seem disproportionately likely to experience financial insecurity as adults,” Ms. Yellen in welcoming remarks prepared for delivery Thursday morning.
Ms. Yellen didn’t comment on the economic outlook or monetary policy.
The data come from the Fed’s Survey of Household Economics and Decisionmaking, which will be released later this spring.
The survey also found young adults who regularly worried about food, care or safety as children are less likely to be employed, less likely to have consistent income month to month and less likely to be able to pay their bills in full each month, compared with adults who said they never worried about those issues, Ms. Yellen said.
She said research to be presented at the conference offers a compelling case for policy makers to consider how best to prepare young people for the labor market and underscores the importance of starting early to help young people develop work habits and skills.
Ensuring young people are better prepared for work and for managing their finances also provides benefits to the economy, she said.
“In short, ensuring that all of our kids have ‘strong foundations’ will help build a similarly strong foundation for the U.S. economy,” she said.
Write to Kate Davidson at kate.davidson@wsj.com