Financial Uncertainty and Anxiety During the COVID-19 Pandemic

Abstract

Abstract. Background: The COVID-19 pandemic involved many uncertainties, including financial uncertainty due to the global financial crisis. Previous research indicates that financial uncertainty is negatively related to mental health and wellbeing. Aims: We tested a model suggesting that the negative impact of financial uncertainty is explained by a restriction of individuals’ view of their future possibilities. Specifically, this longitudinal study explored the relationship of financial uncertainty and anxiety, considering the mediating role of future orientation. Method: Data were collected with questionnaires administered to Israeli citizens in April, June and August 2020. Data analysis comprised 379 respondents who participated in all three times. Results: Future orientation mediated the relationship of financial uncertainty and anxiety over time. Tests of changes across time show that changes in financial uncertainty were related to changes in anxiety levels over time. Limitations: Our sample was biased toward younger ages and the measurement of future orientation referred to a general view of the future rather than specific areas. Conclusion: The results suggest that the stressor of financial uncertainty is generalized to a negative view of future possibilities, thereby increasing anxiety.