result
precision medicine
Gen Z Grows Up
Gen Z Grows Up
The connection between financial stress and psychological distress is greater for young adults.
The connection between financial stress and psychological distress is greater for young adults.
Share this story
Financial stress (FS)—the emotional response to economic hardship—and issues such as debt, financial instability or the inability to meet basic needs is understood to have a significant impact during later years in life, as it increases stress and decreases resilience against challenges. FS often comes with psychological distress (PD), which presents as anxiety, depression, hopelessness and despair that is further exacerbated by continued FS, creating a cycle of intensifying mental health struggles with short and long-term health consequences.
During young adulthood (ages 18–26), these consequences of financial stress (FS) may be even more profound, with long-term effects on financial security and health. Newly minted adults experience a consequential transition period with fluctuating financial needs dictated by circumstance. They must navigate their independence while facing new financial responsibilities such as education, rent, utilities, and planning for retirement. The consequences of FS during this pivotal developmental period may have far-reaching consequences, including long-term physical and mental health problems, diminished quality of life, and an inability to cope. Despite the additional challenges young adults face, the effects of FS on this demographic remains relatively understudied.
Identifying vulnerable groups and addressing modifiable clinical and social determinants of health is crucial for tailored, evidence-based interventions to address the unique needs of young adults and alleviate the potential adverse consequences of (financial stress).
Zulqarnain Javed, MD, PhD, MBBS, MPH
Assistant Research Professor, Cardiology
Understanding the key drivers of FS and the resulting burden and effects on psychological distress (PD) in young adults is critical for developing more effective targeted intervention strategies and policies to both mitigate economic hardships and provide the necessary mental health resources.
To comprehensively investigate the intersection of FS with sociodemographic factors and its potential impact on mental health among young adults in the U.S., a Houston Methodist team led by Zulqarnain Javed, MD, PhD, MBBS, MPH, Assistant Research Professor of Cardiology, investigated the burden, causes and mental health consequences of FS in 18 to 26-year-olds, based on objective measures of FS.
The study, published in Frontiers in Public Health in January 2025, examined the complex interactions among individual financial distress burdens, psychological distress, and social system differences. Using pooled data from the National Health Interview Survey (2013-2018), the team assessed FS as an aggregate score (6–24) based on concern over six life expenses: monthly bills, housing, healthcare, illness/accident, maintaining standard of living and saving money for retirement. High FS individuals were those in the highest quartile of the score. PD was measured via the Kessler Psychological Distress Scale, and those with a total K6 score ≥13 were considered high PD. The team used multivariable ordinal and logistic regression models to identify key social determinants of FS and the association between FS and PD, respectively.
Some characteristics associated with this high FS burden included: low income/low education, lacking insurance, being other than Caucasian and having comorbidities.
Those included were 19,821 individuals aged 18–26 years, 17% (one in six) of whom reported high FS. Some characteristics associated with this high FS burden included: low income/low education, lacking insurance, being other than Caucasian and having comorbidities. In fully adjusted models, high FS was associated with a greater than six-fold higher risk of high PD.
This work highlights the pervasiveness of financial stress among young adults and its psychological impact.
“Identifying vulnerable groups and addressing modifiable clinical and social determinants of health is crucial for tailored, evidence-based interventions to address the unique needs of young adults and alleviate the potential adverse consequences of FS,” said Javed.
Anaiya Nasir, Umair Javed, Kobina Hagan, Ryan Chang, Harun Kundi, Zahir Amin, Sara Butt, Sadeer Al-Kindi and Zulqarnain Javed
Heather Lander, PhD
May 2025
Share this story
Related Articles
