Cost Benefit Analysis of Extension Family Programs Using Parents Forever as a Model

Abstract

With decreasing public funds and increasing accountability, Extension staff may be asked to justify programs as to the economic benefit they provide. This involves employing a costbenefit analysis to the program and its outcomes. This is often reported in terms of money saved but can be more challenging to apply to family and human development programs where the program benefits are not as easily quantified. An example is the Parents Forever program, a court ordered divorce education program which teaches parents how divorce impacts their children and skills for parenting to prevent negative impact such as juvenile delinquency, teen pregnancy, school dropouts, etc. Using the Parents Forever program as an example, this poster will address: 1) definition and rationale for conducting a cost-benefit analysis (CBA), 2) critical indicators determining both direct and indirect program costs, 3) identifying and monetizing both tangible and intangible benefits, 4) important aspects of analyzing cost and benefits including “sensitivity analyses,” and 5) lessons learned in the process of the cost-benefit analysis of the program.