The lasting toll of financial strain
Key points:
- Struggling with money in childhood is linked to higher rates of anxiety and loneliness later in life, often surfacing nearly two decades earlier than for those who grew up financially secure.
- Experiencing financial hardship in both childhood and adulthood further increases the likelihood of depression, anxiety and loneliness in older age.
- Feeling financially secure plays a key role in emotional health — beyond just what someone earns.
Stress about money doesn’t just weigh on us in the moment. According to a new study published in Aging and Mental Health and led by a researcher at the USC Dornsife College of Letters, Arts and Sciences, it can echo across decades — leaving a measurable imprint on emotional health well into older age.
Psychologist Deborah Finkel, a research scientist at USC Dornsife’s Center for Economic and Social Research, led a team that analyzed existing survey data from 1,600 adult participants from the Swedish Twin Registry — a long-running longitudinal study designed to track health and psychological outcomes over time. The dataset included participant responses about recalled financial strain in childhood, reported financial hardship in adulthood, and current symptoms of depression, anxiety and loneliness.
The study found that people who experienced financial strain, either in childhood, adulthood or both, were more likely to report emotional distress well into older adulthood, including into their 70s and beyond. The link was especially clear when economic stress accumulated over time.
“Even when people’s financial circumstances improve later in life, the emotional residue from early hardship can linger far longer than we expect,” said Finkel. “Financial stress creates surprisingly long-lasting consequences.”