Outcome studies in foster care have tended to focus on children's development and long-term adjustment. The economic aspects of placements and their effect on children's immediate welfare have been little explored. Stefan Wiklund and Marie Sallnäs compare the economic circumstances of Swedish foster carers with adults in the wider population and contrast the situation of 125 older children in foster homes, teenagers in the community and a group in residential care. As few differences were found, except for the relative disadvantage of those in residential settings, it is concluded that there is no intrinsic reason why foster care should deprive children economically. Moreover, as the child's welfare while in care is important in its own right, the criteria used to assess the suitability of carers should include measures of available resources.