Money and the Mind: Financial Well-Being, Mental Health, and Loneliness in a Large Cohort of Emerging Adults.

Objective: Financial challenges are common during emerging adulthood (ages 18-29) and may have implications for mental health and social relationships. Research with adults more generally indicates that debt and financial distress are associated with a range of poor health and social outcomes. However, most research has not addressed emerging adulthood, an important developmental period. Additionally, research with emerging adults has focused on debt burden rather than the broader concept of financial well-being which reflects a more holistic assessment of capabilities, future opportunities, and security. We examined financial well-being as a predictor of subsequent changes in mental health and loneliness among emerging adults. Methods: A community sample of emerging adults (N=2,157) completed surveys in 2021-22 (mean age=25) and 2022-23 (mean age=26) measuring financial well-being, depression symptoms, anxiety symptoms, and loneliness. We used longitudinal multivariable linear regression models to examine financial well-being and perceived debt burden, both independently and simultaneously, as predictors of change in outcomes one year later. Results: Lower financial well-being was prospectively associated with greater depression symptoms, anxiety symptoms, and loneliness. Debt burden had no independent prospective association with any of the three mental health outcomes. Conclusion: Broader measures of financial well-being may be more relevant than debt burden or understanding mental health outcomes. Assessing financial well-being may help identify individuals at risk for psychological distress. In addition to upstream efforts to reduce drivers of debt and poor financial well-being, there is a need for greater attention to links between economic circumstances and outcomes during this critical developmental period.