Struggles with mental health during adolescence are causing significant economic losses in the United States. New research shows that psychological distress among teens leads to financial setbacks for individuals and the economy as a whole.
A study tracking over 3,300 American teenagers into their early adult years found that those experiencing significant distress in their teen years earn an average of $5,700 less annually in their late twenties. By age 30, these individuals have accumulated nearly $10,800 less in savings compared to their peers.
The study, published in PLOS Medicine, used the Mental Health Inventory-5 questionnaire to measure psychological distress. This tool gauges mood, anxiety levels, and emotional well-being. Teens frequently feeling nervous, depressed, or hopeless were identified as experiencing significant distress.
The research showed that the ripple effects of these struggles extend into adulthood, with affected young adults working 201 fewer hours annually—the equivalent of five weeks of full-time employment. Additionally, these individuals were 6% less likely to hold a job at all.
Educational attainment also suffered. Those who faced serious psychological distress during their teenage years were 9% less likely to attend college and 3% less likely to earn a degree. This gap in education correlates with reduced job opportunities and diminished earning potential, compounding the economic impact.
What sets this study apart is its ability to integrate mental health findings with government economic models. By demonstrating how improved mental health outcomes can translate into substantial federal budget benefits, the research provides a compelling case for preventive care.
The researchers calculated that expanding access to preventive mental health care for just 10% of at-risk teens could generate $52 billion in economic returns over a decade. This gain stems from increased workforce participation and higher earnings among individuals who receive timely mental health support.
Nathaniel Counts, the study’s lead author from The Kennedy Forum, stressed the economic value of early mental health intervention. He explained that investing in adolescent mental health could yield billions of dollars in benefits, helping offset the costs of expanding critical services like integrated care.
The findings come at a time when teen mental health is in sharp decline.
The COVID-19 pandemic exacerbated existing issues, while social media, technological shifts, and economic uncertainty have added to the pressure. Without action, these challenges threaten to deepen their hold on the economy and society.
Currently, government spending on integrated mental health care infrastructure amounts to $60 million annually.
Researchers suggest that reaching even 25% of the adolescent population would require a tenfold increase, approximately $10 billion. While this might appear costly, the study’s findings indicate that such investments could effectively pay for themselves through long-term economic gains.
These insights challenge policymakers to rethink the way mental health programs are evaluated, highlighting the significant returns that come from addressing the teen mental health crisis head-on.