Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Insights into Financial Stress among Adults: How are Financial Worries affecting the Young, Middle-aged, tand Older Adults?


Affiliations
1 Research Scholar, Department of Commerce, Sree Narayana College, Kannur, Kerala, India
2 Assistant Professor and Head, Payyanur College, Payyanur, Kerala, India
     

   Subscribe/Renew Journal


Adults often experience financial stress. Managing financial stress among adults is a broad-based problem that impedes the management of family and social relationships. Financial stress is defined as the uncomfortable feeling of not being able to satisfy financial obligations and afford necessities. This study is aimed at describing the relationship between financial stress and the age of the participants, and also exploring the effect of financial stress on family and social relationships among adults in the state of Kerala. Three age categories were distinguished, broadly described as the young (18 to 35), the middle-aged (36 to 55), and the older (56 and older). Data have been gathered from 345 adults in Kerala using a convenience sampling method. Descriptive statistics were used to characterise survey participants and compared using chi-square tests across the age groups. To assess the significant difference between financial stress and age, analysis of variance was used as appropriate. A general linear model of multivariate tests was used to assess the effects of financial stress on family and social relationships among the different categories of adults. The results have shown that there is a significant difference between age and financial stress among adults. It also inferred that the effect of financial stress differed statistically significantly depending on the age group of the participants. The paper provides a greater understanding of financial stress and its relationships with stages of life among adults. Finally, the research revealed that financial stress has both direct and indirect effects on adulthood life at various stages.

Keywords

Financial Stress, Financial Hardship, Adults, Family Relationship, Social Relationship
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abid, A., & Shafiai, M. H. M. (2018). Determinants of household financial vulnerability in Malaysia and its effect on low-income groups. Journal of Emerging Economies and Islamic Research, 6(1), 32-43. doi:https://doi.org/10.24191/jeeir.v6i1.8772

  • Afifi, T. D., Davis, S., Merrill, A. F., Coveleski, S., Denes, A., & Shahnazi, A. F. (2018). Couples’ communication about financial uncertainty following the great recession and its association with stress, mental health and divorce proneness. Journal of Family and Economic Issues, 39(2), 205-219. doi:https://doi.org/10.1007/s10834-017-9560-5

  • Bhagwan, P. (2019). Empirical study on relationship between financial inclusion and financial literacy and its impact on consumer financial behaviour: A theoretical framework of unbanked people. Journal of Commerce & Accounting Research, 8(1), 61-67.

  • Crous, G. (2017). Child psychological well-being and its associations with material deprivation and type of home. Children and Youth Services Review, 80, 88-95. doi:https://doi.org/10.1016/j.childyouth.2017.06.051

  • Dunn, L. F., & Mirzaie, I. A. (2015). Consumer debt stress, changes in household debt, and the great recession. Economic Inquiry, 54(1), 201-214. doi:https://doi.org/10.1111/ecin.12218

  • French, D., & McKillop, D. (2017). The impact of debt and financial stress on health in Northern Irish households. Journal of European Social Policy, 27(5), 458-473. doi:https://doi.org/10.1177/0958928717717657

  • Gathergood, J. (2012). Debt and depression: Causal links and social norm effects. The Economic Journal, 122(563), 1094-1114. doi:https://doi.org/10.1111/j.1468-0297.2012.02519.x

  • Hamilton, D., & Darity, W. A. (2017). The political economy of education, financial literacy, and the racial wealth gap. Review, 99(1), 59-76. doi:https://doi.org/10.20955/r.2017.59-76

  • Heo, W., Cho, S. H., & Lee, P. (2020). APR financial stress scale: Development and validation of a multidimensional measurement. Journal of Financial Therapy, 11(1), 1-28. doi:https://doi.org/10.4148/1944-9771.1216

  • Hilton, J. M., & Devall, E. L. (1997). The family economic strain scale: Development and evaluation of the instrument with single- and two-parent families. Journal of Family and Economic Issues, 18(3), 247-271. doi:https://doi.org/10.1023/a:1024974829218

  • Hojman, D. A., Miranda, L., & Ruiz-Tagle, J. (2016). Debt trajectories and mental health. Social Science & Medicine, 167, 54-62. doi:https://doi.org/10.1016/j.socscimed.2016.08.027

  • Keene, D. E., Cowan, S. K., & Baker, A. C. (2015). When you’re in a crisis like that, you don’t want people to know: Mortgage strain, stigma, and mental health. American Journal of Public Health, 105(5), 1008-1012. doi:https://doi.org/10.2105/ajph.2014.302400

  • Keese, M. (2012). Who feels constrained by high debt burdens? Subjective vs. objective measures of household debt. Journal of Economic Psychology, 33(1), 125-141. https://doi.org/10.1016/j.joep.2011.08.002

  • Kim, J., Sorhaindo, B., & Garman, E. T. (2006). Relationship between financial stress and workplace absenteeism of credit counseling clients. Journal of Family and Economic Issues, 27(3), 458-478. doi:https://doi.org/10.1007/s10834-006-9024-9

  • Lai, D. W. L. (2011). Perceived impact of economic downturn on worry experienced by elderly Chinese immigrants in Canada. Journal of Family and Economic Issues, 32(3), 521-531. doi:https://doi.org/10.1007/s10834-010-9239-7

  • Northern, J. J., O’Brien, W. H., & Goetz, P. W. (2010). The development, evaluation, and validation of a financial stress scale for undergraduate students. Journal of College Student Development, 51(1), 79-92. doi:https://doi.org/10.1353/csd.0.0108

  • Olson, C. L. (1974). Comparative robustness of six tests in multivariate analysis of variance. Journal of the American Statistical Association, 69(348), 894-908. doi:https://doi.org/10.1080/01621459.1974.10480224

  • Pandu, G. A., & Sankar, R. (2019). Relationship between savings determinants and savings behaviour among households in Tamilnadu and Puducherry. Journal of Commerce & Accounting Research, 8(4), 1-11.

  • Park, W., & Kim, J. (2018). How are money worries affecting middle-aged, young-old, and old-old people’s perceived couple relationship? Journal of Family and Economic Issues, 39(1), 34-48. doi:https://doi.org/10.1007/s10834-017-9547-2

  • Ponnet, K. (2014). Financial stress, parent functioning and adolescent problem behavior: An actor-partner interdependence approach to family stress processes in low-, middle-, and high-income families. Journal of Youth and Adolescence, 43(10), 1752-1769. doi:https://doi.org/10.1007/s10964-014-0159-y

  • Rai, K., & Gupta, A. (2021). Financial literacy leads to retirement financial planning: A structural equation modelling approach. Journal of Commerce & Accounting Research, 10(4), 9-18.

  • Robb, C. A. (2017). College student financial stress: Are the kids alright? Journal of Family and Economic Issues, 38(4), 514-527. doi:https://doi.org/10.1007/s10834-017-9527-6

  • Romo, L. K. (2014). These aren’t very good times: Financial uncertainty experienced by romantic partners in the wake of an economic downturn. Journal of Family and Economic Issues, 35(4), 477-488. doi:https://doi.org/10.1007/s10834-014-9389-0

  • Serido, J., Lawry, C., Li, G., Conger, K. J., & Russell, S. T. (2014). The associations of financial stress and parenting support factors with alcohol behaviors during young adulthood. Journal of Family and Economic Issues, 35(3), 339-350. doi:https://doi.org/10.1007/s10834-013-9376-x

  • Shen, S., Sam, A. G., & Jones, E. (2014). Credit card indebtedness and psychological well-being over time: Empirical evidence from a household survey. Journal of Consumer Affairs, 48(3), 431-456. doi:https://doi.org/10.1111/joca.12047

  • Stein, C. H., Hoffmann, E., Bonar, E. E., Leith, J. E., Abraham, K. M., Hamill, A. C., Kraus, S. W., Gumber, S., & Fogo, W. R. (2013). The United States economic crisis: Young adults’ reports of economic pressures, financial and religious coping and psychological well-being. Journal of Family and Economic Issues, 34(2), 200-210. doi:https://doi.org/10.1007/s10834-012-9328-x

  • Stevenson, C., Costa, S., Wakefield, J. R., Kellezi, B., & Stack, R. J. (2020). Family identification facilitates coping with financial stress: A social identity approach to family financial resilience. Journal of Economic Psychology, 78. doi:https://doi.org/10.1016/j.joep.2020.102271

  • Sweet, E., Nandi, A., Adam, E. K., & McDade, T. W. (2013). The high price of debt: Household financial debt and its impact on mental and physical health. Social Science & Medicine, 91, 94-100. doi:https://doi.org/10.1016/j.socscimed.2013.05.009

  • Thorne, D. (2010). Extreme financial strain: Emergent chores, gender inequality and emotional distress. Journal of Family and Economic Issues, 31(2), 185-197. doi:https://doi.org/10.1007/s10834-010-9189-0

  • Tran, A. G. T. T., Lam, C. K., & Legg, E. (2018). Financial stress, social supports, gender, and anxiety during college: A stress-buffering perspective. The Counseling Psychologist, 46(7), 846-869. doi:https://doi.org/10.1177/0011000018806687

  • Valentino, S. W., Moore, J. E., Cleveland, M. J., Greenberg, M. T., & Tan, X. (2014). Profiles of financial stress over time using subgroup analysis. Journal of Family and Economic Issues, 35(1), 51-64. doi:https://doi.org/10.1007/s10834-012-9345-9

  • Walsdorf, A. A., Jordan, L. S., McGeorge, C. R., & Caughy, M. O. (2020). White supremacy and the web of family science: Implications of the missing spider. Journal of Family Theory & Review, 12(1), 64-79. doi:https://doi.org/10.1111/jftr.12364

  • Yunchao, C., Abdullah Yusof, S., Mohd Amin, R., & Mohd Arshad, M. N. (2020). Household debt and household spending behavior: Evidence from Malaysia. Jurnal Ekonomi Malaysia, 54(1), 111-120. doi:https://doi.org/10.17576/jem-2020-5401-8


Abstract Views: 255

PDF Views: 0




  • Insights into Financial Stress among Adults: How are Financial Worries affecting the Young, Middle-aged, tand Older Adults?

Abstract Views: 255  |  PDF Views: 0

Authors

P. K. Vyshak
Research Scholar, Department of Commerce, Sree Narayana College, Kannur, Kerala, India
T. K. Jayarajan
Assistant Professor and Head, Payyanur College, Payyanur, Kerala, India
P. K. Vishnu
Research Scholar, Department of Commerce, Sree Narayana College, Kannur, Kerala, India

Abstract


Adults often experience financial stress. Managing financial stress among adults is a broad-based problem that impedes the management of family and social relationships. Financial stress is defined as the uncomfortable feeling of not being able to satisfy financial obligations and afford necessities. This study is aimed at describing the relationship between financial stress and the age of the participants, and also exploring the effect of financial stress on family and social relationships among adults in the state of Kerala. Three age categories were distinguished, broadly described as the young (18 to 35), the middle-aged (36 to 55), and the older (56 and older). Data have been gathered from 345 adults in Kerala using a convenience sampling method. Descriptive statistics were used to characterise survey participants and compared using chi-square tests across the age groups. To assess the significant difference between financial stress and age, analysis of variance was used as appropriate. A general linear model of multivariate tests was used to assess the effects of financial stress on family and social relationships among the different categories of adults. The results have shown that there is a significant difference between age and financial stress among adults. It also inferred that the effect of financial stress differed statistically significantly depending on the age group of the participants. The paper provides a greater understanding of financial stress and its relationships with stages of life among adults. Finally, the research revealed that financial stress has both direct and indirect effects on adulthood life at various stages.

Keywords


Financial Stress, Financial Hardship, Adults, Family Relationship, Social Relationship

References