The Consequences of Financial Stress for Individuals, Families, and Society
Thoughts
Based on Stress Process Theory and Family Systems Theory, defines ‘financial stress as the unpleasant feeling that one is unable to meet financial demands, afford the necessities of life, and have sufficient funds to make ends meet. The feeling normally includes the emotions of dread, anxiety, and fear, but may also include anger and frustration.’
And also complements that ‘we refer to the objective circumstances that typically give rise to the feeling of financial stress as economic hardship. Economic hardship may be due to such things as the loss of a job, unexpected medical or legal expenses, chronic overspending, investment losses, or gambling.’
Connects with: @lempers1989 @peirce1996 @takeuchi1991
Annotations
davis2004 - p. 13
We define financial stress as the unpleasant feeling that one is unable to meet financial demands, afford the necessities of life, and have sufficient funds to make ends meet. The feeling normally includes the emotions of dread, anxiety, and fear, but may also include anger and frustration.
davis2004 - p. 13
Whereas financial stress is a subjective feeling, which may or may not be based on an objective assessment of one’s financial situation, we refer to the objective circumstances that typically give rise to the feeling of financial stress as economic hardship. Economic hardship may be due to such things as the loss of a job, unexpected medical or legal expenses, chronic overspending, investment losses, or gambling.
davis2004 - p. 13
Economic hardship is often defined in terms of family income below the poverty line (often taking into account family size), a decrease in family income of greater than 35% from one year to the next, a high debt-to-asset ratio, or loss of job by principal breadwinner.
davis2004 - p. 27
hildren of financially stressed parents tend to be more prone to mental health problems, depression, loneliness, and are more emotionally sensitive (Elder et al., 1985; Lempers et al., 1989; Werner & Smith, 1982). They are less sociable and more distrustful, and are more likely to feel excluded by their peers, especially if they are girls (Buss & Redburn, 1983; Conger et al., 1993a; Elder, 1974). Boys of financially stressed parents are likely to exhibit low self-esteem, to show behaviour problems in school, and be susceptible to negative peer pressure (Elder et al., 1985) and alcohol and drug problems (Conger, Reuter, & Conger, 2000).
davis2004 - p. 28
That is, Mistry et al. showed that parents with greater financial stress were more likely to be distressed (i.e., depressed, exhibit chronic worry), and that this greater distress led to less parental responsiveness and more inconsistent discipline, which in turn was associated with teacher ratings of greater hyperactivity, more aggression, and more frequent disciplinary actions for kids of distressed parents.