Journal of Financial Counseling and Planning

Income Shocks, Financial Hardship, and Changes in Depression Symptomatology Among Older Americans During the First Year of the COVID-19 Pandemic Using data from the 2018 and 2020 waves of the Health and Retirement Study, this research examined the effect of financial hardship experienced during the COVID-19 pandemic on the mental health of older Americans. Estimates from the ordinary least squares and logistic regressions showed that individuals who experienced income shocks, particularly those with decreased retirement savings/assets income, reported more depressive symptoms and a higher likelihood of depression. Similarly, financial hardship measured as the number of financial arrears was found to be positively correlated with depression symptoms and the onset of depression. Depression symptomatology and onsets were mainly influenced by pandemic-related shocks to retirement/assets income among retired individuals and by earnings shocks among nonretired respondents. The effects were more pronounced among retired individuals and those without a preexisting history of psychiatric problems.

Job Loss and Financial Distress During COVID-19: The Protective Role of Emergency Savings Learn more at https://lnkd.in/eAMyvqEf AFCPE® (Association for Financial Counseling and Planning Education®)

The Effect of COVID-19 on Subjective Financial Well-Being https://lnkd.in/eJyKtg6e How did COVID-19 pandemic affect people’s financial well-being, i.e., their feelings about their current and future financial situation? To answer this question, we conducted two studies in Sweden. Contrary to what one might expect, we found that during the pandemic, people actually felt more positive about their overall financial situation. This boost in financial well-being was mainly because people felt less anxious about their current financial matters, even though worries about future financial security either stayed the same or got a bit worse.   We propose two explanations. First, people can only worry about so much at once, so financial concerns might have been temporarily overshadowed by more pressing matters, like health risks. Second, the reduced spending opportunities at the onset of the pandemic may have provided some consumers with a temporary financial relief, which helped ease their financial stress.   Our research highlights the complex and sometimes surprising ways that external crises, like a pandemic, can affect financial well-being. By understanding these dynamics, we hope to shed light on how people manage financial stress during challenging times.

Financial Education and Financial Anxiety: Do Quality and Quantity Differ? https://lnkd.in/eaNsFuRZ Academic and governmental institutions are working to boost Americans’ financial capability and long-term well-being through financial education. Our study examined financial education from two perspectives: quantity and quality. We found that the quality of financial education is more important than frequency when it comes to enhancing a person’s financial capability. But, more hours of financial education and financial capability both lower financial anxiety while high-quality education can raise it. These findings underscore the importance of prioritizing quality in financial education programs to ensure financial capability. Likewise, by offering frequent, targeted learning opportunities, educators can effectively mitigate financial anxiety and empower participants with essential financial knowledge.

Having a Significant Other Reduced Financial Strain During the COVID-19 Pandemic AFCPE® (Association for Financial Counseling and Planning Education®) This article explores how having a significant other influenced financial strain during the COVID-19 pandemic. The results reveal that individuals with a significant other reported lower levels of financial strain compared to those who reported having no significant other, even while controlling for factors such as income, net worth, and employment status. The findings emphasize (1) the protective role that a supportive partner can play in financial health and (2) that single individuals may be particularly vulnerable during times of financial volatility. The robust discussion offers valuable insights for financial practitioners on how to address and support clients facing financial challenges.

Perceived Mental and Physical Health During the Pandemic: The Role of Financial Stress Read the full article here: https://lnkd.in/emdUBz-w

Knowing the “Don’t Knows” to Financial Literacy Questions in the U.S. National Financial Capability Study AFCPE® (Association for Financial Counseling and Planning Education®) https://connect.springerpub..com/content/sgrjfcp/35/2/292

How Do Personality Traits Relate to Financial Satisfaction During the COVID-19 Pandemic? https://lnkd.in/e7KbDqYk AFCPE® (Association for Financial Counseling and Planning Education®) Yi Liu, Ph.D., CFP® Wookjae Heo Blain Pearson, Ph.D., CFP®, AFC®

The Importance of the “Client” Experience for Financial Planning Students: A Qualitative Inquiry of Themes https://lnkd.in/eMzwG_BE Megan McCoy, Ph.D., LMFT, AFC®, CFT-I™ Kimberly Watkins Kenneth White Rick Kahler, MS, CFP®, CFT-I™, CeFT® Miranda Reiter, Ph.D., CFP® AFCPE® (Association for Financial Counseling and Planning Education®)

Mortgage Status and Financial Stress: Do Home Equity Loans, Negative Home Equity, and Mortgage Default Matter? AFCPE® (Association for Financial Counseling and Planning Education®) Abstract A home is often the largest asset held by U.S. households. If home equity accumulation is slowed through acquiring a home equity loan, threatened through mortgage default, or undermined through the occurrence of negative home equity, homeowners may experience increased financial stress. This study used the 2018 National Financial Capability Study to assess the relationship between three mortgage statuses (having a home equity loan, negative home equity, or mortgage default) and financial stress among nonretiree mortgage holders (N = 5,058). Financial stress was measured by an index of financial difficulty perceptions. Findings revealed that negative home equity is related to greater levels of financial stress than mortgage default or having a home equity loan. Additionally, experiencing a large drop in income intensified the positive relationship between negative home equity and the financial stress index. These findings suggest that conditions seemingly outside the control of homeowners may influence their financial stress perceptions. #mortgage #finance #homeequity https://lnkd.in/eari-iuh