Teen pregnancy and associated socio-economic consequences like poverty can be reduced only through effective government programs. A research into adolescent sexual risk-taking attitude and the analysis and application of research-based theories and programs that reduce the risk-taking behavior are essential to reduce teen pregnancy. Teen pregnancy is not only attributed to social and sexual beliefs but can arise as a manifestation of social disorganization and poverty. A dramatic change can be brought to the situation only with programs that address protective factors and associated risks. Poverty in the United States is related to the family structure. The rate of poverty among American children has been rising from 15 percent in 1970 to 20 percent in 1996. The change in social composition to single parents is another reason that increases welfare dependency and poverty. It is very important to step up measures to curb early childbearing and reduce teen pregnancy to bring down the rate of child poverty. The welfare reform bill of 1996 is a related initiative to restore marriage as the foundation for a successful society. The bill requires teenage mothers below the age of 18 years to continue schooling and continue to live with their parents, offers illegitimacy bonus for decreasing the rate of unwed childbearing among all women, offers funds for abstinence education plan and gives importance to establish the role of paternity. In short, reducing the birth rate of unwed teenagers can substantially reduce welfare dependency, child poverty, and related social evils.