In light of the ongoing financial difficulties faced by public budgets, it is urgently necessary to examine social benefits in terms of their effectiveness and cost-efficiency. The study develops a cost-benefit analysis for youth welfare measures and justifies their necessity. Based on empirical evidence and current effectiveness studies, the economic impacts of youth welfare measures in the area of residential care are estimated using the human capital approach and insights from developmental psychopathology, focusing on employment and unemployment, health-related behavior, and delinquency. The results show clearly positive benefit-cost differences and benefit-cost ratios.