A study conducted by economist Pasi Holm suggests that increasing family care options for children who cannot live with their parents could lead to substantial financial savings for Finland, amounting to hundreds of millions of euros each year. The research, commissioned by various organizations including Avosylin and the Family Care Association, highlights the urgent need to shift from institutional care to family care models. In 2024, the costs associated with children's institutional and family care were projected to reach 1.2 billion euros, reflecting a significant increase of 75% since 2015.

The report emphasizes that even with strong support, family care remains significantly cheaper than institutional care. While the average cost of a child's institutional care is around 445 euros per day, family care averages just 144 euros per day. This stark difference points to potential cost efficiencies for the Finnish welfare system, urging a reconsideration of funding allocations and care strategies.

Moreover, Holm's findings suggest that the current expenditure primarily on institutional care, which accounts for approximately three-quarters of annual costs, is not sustainable. Shifting towards more family-based care solutions could not only alleviate financial burdens but also provide better emotional and developmental outcomes for children placed outside their homes. This report invites policymakers to reflect on the necessity of reforming child welfare strategies in Finland to ensure both economic and social benefits.