Financial Problems in Established Adulthood: Implications for Depressive Symptoms and Relationship Quality with Parents.

Abstract

Using two waves of data from the Family Exchanges Study (2008 and 2013), this study examined changes in financial problems before and after the Great Recession and investigated the implications for adults' depressive symptoms and relationship quality with parents. Participants in established adulthood (N = 170, age 30-46 in 2013) provided information about their financial difficulties and depressive symptoms, as well as negative relationship quality with each parent (parent-child tie; N = 316) at baseline and 5 years later. Results showed that a growing number of participants experienced financial problems between the two waves, rising from 16 to 72% of participants. Moreover, 14% of participants indicated continuing financial problems and 33% reported decreased income over the 5 year observation period. Financial problems at baseline, continuing financial problems across the observation period, and decreased income over time were associated with participants' increased depressive symptoms, after controlling for their baseline depressive symptoms. Results from multilevel models also revealed that adult participants had more strained relationships with their parents if they experienced more financial problems at the follow-up interview. The harmful effect of financial problems on relationship quality with parents was partially explained by adult participants' depressive symptoms. Findings of this study highlight the important role of financial hardship for persons in established adulthood and their intergenerational ties.