The present study examined pathways to financial independence from social welfare among 738 teenage mothers, participants of the 1970 British Cohort Study. Using a longitudinal design, a pathway model was tested, examining linkages and causal relations between family social background, cognitive ability, school motivation, and individual investments in education, as well as work-, and family related roles. The data suggests that financial independence from social welfare is a significant factor contributing to life satisfaction by age 30 among women who were adolescent mothers. The most important factors associated with financial independence are continued attachment to the labour market as well as a stable relationship with a partner (not necessarily the father of the child). Pathways to financial independence, in turn, are predicted through own cognitive resources, school motivation, and family cohesion. Implications of findings for policy making are discussed.