Financial Loss and Financial Well-Being of Emerging Adults During COVID-19: The Limitations of Psychological Resilience

Abstract

Amid the COVID-19 pandemic, emerging adults are especially vulnerable as they experience its financial impact as a source of stress. We tested a model of psychological resilience among emerging adults (18–25 years) during the pandemic from six Western countries (Finland, Italy, Lithuania, Portugal, Slovenia, and United States) using online survey data collected between May and September 2020. Framed in the conservation of resources theory, we examined the association between financial loss and financial well-being and the moderating role of psychological resilience in the association. Using path analysis, we found a direct negative association between financial loss and financial well-being, a direct positive association between psychological resilience and financial well-being, but no evidence of moderation. We discuss the findings in the context of continuing global economic uncertainty and the support needed to foster adult independence and financial well-being of emerging adults.