The aim is to provide prisoners at Swinfen Hall Young Adult Prison in Lichfield with information on the advice and guidance available to them on release.
The guide will be produced by the prisoners over the next two months, overseen by young offender resettlement project Reset.
Pete Knapton, governor of Swinfen Hall, said: "We hope this will help these men and many others in the future with their resettlement. Swinfen Hall recognises that by getting prisoners involved in the resettlement process there is a greater chance that they will take ownership of these plans and stick to them."
James, 21, the young offender who applied for the funding, said: "This piece of work will hopefully allow more prisoners to build crime-free futures."