The study investigated whether cuts to school resources made during economic recession contribute to children's psychiatric and economic problems in early adulthood. The cohort consisted of 817 Finnish children. Data was gathered from teachers during a recession (child age 12) and from national registers on children's post-recession use of psychiatric and income benefit services (age 18-28). Children's need for remedial instruction, special education, or psychosocial services was associated with later use of income support and psychiatric services. Those receiving special education had an increased risk for adulthood use of psychiatric services as compared to those who needed, but did not receive, this service. A decrease in material resources and teachers' loss of motivation predicted children's later use of psychiatric services.