The United States Economic Crisis: Coping During Emerging Adulthood
Erica Hoffmann, Erin E. Bonar, Kristen M. Abraham, Shane W. Kraus, Jaclyn E. Leith, & Catherine H. Stein
Department of Psychology, Bowling Green State University, Bowling Green, OH
Abstract
The present study examined the role of current economic pressures and secular and religious coping strategies on individual well-being in a sample of 222 young adults. In general, young adults reported being impacted by the current economic crisis. Participants’ reports of personal economic pressures were generally related to higher levels of psychological distress and lower levels of life satisfaction. Adults’ use of active financial coping strategies that emphasized education and communication about their financial situation were generally related to less anxiety and depression and greater life satisfaction. Implications of results for community research and action are discussed.
Introduction
• The current economic crisis in the United States has impacted individuals from all walks of life. Since 2008, Americans have experienced record unemployment, a dramatic decline in home prices, and an uncertain economic future (Katel, 2009; US Bureau of Labor Statistics).
• Previous research conducted during the farm crisis of the 1980s highlighted relationships between middle-age adults’ perceptions of economic pressure and psychological distress. Specifically, individuals who endured more financial stress experienced more depression, demoralization, and greater hostility (Conger, Elder, Lorenz, Simons, & Whitbeck, 1994).
• Life course theory suggested that emerging adulthood, a period representing the end of high school through the mid-twenties, was a time when adults sought to establish autonomy, pursued higher education, and started their careers (Arnett, 2000).
• Emerging adults, who valued individualism but often received financial assistance, may have been particularly vulnerable to economic strain posed by the current financial crisis (Schoeni & Ross, 2005).
• Previous studies suggested the importance of secular and religious coping strategies for dealing with stressful situations (Lazarus & Folkman, 1984; Pargament, Koenig, & Perez, 2000). Yet, surprisingly little was known about what types of coping strategies individuals used to deal with the current financial crisis.
• The present study examined the relative contribution of young adults’ reports of economic pressures, secular financial coping, and religious coping strategies in accounting for variation in their reports of psychological well-being in the context of the US economic crisis.
Method
• Sample of 222 young adults: 64% female, 98% unmarried, and 85% Caucasian with a mean age of 20.5 years (SD = 2.2).
• Young adults attending a public Midwestern university were recruited through psychology courses from March - June 2009.
• Participants completed an online survey approved by the BGSU Institutional Review Board.
• The US Economic Crisis Financial Coping Scale. 19-item self-report measure of financial coping was developed for the present study and included four subscales: Active Coping: Education and Communication, Active Coping: Risk Taking, Seeking Social Support, Avoidant or Passive Coping.
• Religious Coping Scales (RCOPE). A brief version of three meaning making subscales: Reappraisal of God’s Powers, Benevolent Religious Reappraisal, Punishing God Reappraisal , was used to assess aspects of religious coping (Pargament, Koenig, & Perez, 2000).
• Economic Pressure Scale. Meeting Material Needs (5-items) and Economic Adjustments (17-items) subscales were used to assess financial difficulties (Conger, Elder, Lorenz, Simons, & Whitbeck, 1994).
• Psychological well-being. Participants completed self-report measures on Satisfaction with Life Scale (5-items) (Pavot & Diener, 1993), Generalized Anxiety Disorder -7 (7-items) (Spitzer, Kroenke, Willisams, & Lowe, 2006) and Center for Epidemiological Studies Depressed Mood Scale (20-items) (Radloff, 1977).
Table 1. Participants’ Current Financial Situation
Self-Reported Financial Circumstances / Percentage of SamplePaid 30% or less of college costs themselves / 63%
Took out student loans / 63%
Had a college savings fund through parents / 44%
Employed part-time / 46%
Recently lost job / 14%
Placed on reduced hours at their job / 37%
Searched for part-time job but could not find one / 51%
Income decreased during past year / 38%
Had “just enough” money to pay for necessities / 59%
Felt little or no control over the current US economic situation / 66%
Results
• On the Financial Coping Subscales, Education and Communication yielded significantly higher scores for women (M = 12.84, SD = 2.44) compared to men (M = 11.95, SD = 2.68; t(218) = -2.5, p < .05) and Social Support and Meaning yielded significantly higher scores for women (M = 7.54, SD = 1.89) compared to men (M = 6.89, SD = 1.95; t(219) = -2.47, p < .05). There were no other significant gender differences on predictor variables used in the present study.
• Hierarchical regressions significantly predicted participants overall psychological distress: anxiety, F(11, 204) = 4.10, p <.001; depression, F(11, 204) = 6.11, p <.001; life satisfaction , F(11, 203) = 9.86, p <.001.
• Step 1: Gender accounted for significant variance in anxiety (ΔR2 = .04, p < .05) and depression (ΔR2 = .04, p < .05) and age was significantly related to life satisfaction (ΔR2 = .05, p < .01).
• Step 2: Participants having to make economic adjustments to deal with the financial crisis accounted for the highest variance in overall distress (β = .36, ΔR2 = .12, p < .01 for anxiety; β = .34, ΔR2 = .14, p < .01 for depression; β = -.29, ΔR2 = .20, p < .01 for life satisfaction) . Being able to meet material needs was also significantly related to higher life satisfaction (β = .26).
• Step 3: When problem-focused coping was utilized – specifically, actively seeking education and communicating about financial concerns – participants reported decreased anxiety (β = -.15), decreased depression (β = -.21), and increased life satisfaction (β = .27), although overall variance accounted for by secular coping (ΔR2 = .04, p < .05 for depression; ΔR2 = .07, p < .01 for life satisfaction) was relatively small.
• Step 4: Higher scores on the Punishing God subscale were significantly related to reports of depressed mood (β = -.18) and less life satisfaction (β = -.16), although overall variance accounted for by religious coping (ΔR2 = .03, p < .05 for depression; ΔR2 = .03, p < .05 for life satisfaction) was relatively small.
Table 2. Hierarchical Linear Regressions Predicting Psychological Well-Being
Depression Anxiety Life Satisfaction
B / SE B / β / Adj. R2 / B / SE B / Β / Adj. R2 / B / SE B / β /Adj. R2
Full Model / .18** / .25** / .35**
Gender / 1.19 / .79 / .10 / 2.08 / 1.56 / .09 / -.57 / .85 / -.04
Age / -.02 / .18 / -.01 / .13 / .35 / .03 / -.28 / .19 / -.09
Meeting Material Needsa / -.07 / .68 / -.01 / -.78 / 1.34 / -.04 / 2.56 / .73 / .23**
Economic Adjustmentsb / 9.32 / 1.94 / .36** / 18.48 / 3.83 / .35** / -10.5 / 2.09 / -.34**
Education & Communication / -2.09 / 1.04 / -.15* / -5.03 / 2.04 / -.18* / 3.80 / 1.12 / .23**
Risk &Shame / .22 / 1.05 / .02 / -.12 / 2.08 / -.004 / 1.78 / 1.13 / .11
Social Support / 1.27 / .92 / .11 / 3.30 / 1.82 / .14 / -.32 / 1.00 / -.02
Passive & Avoidant / .04 / .88 / .003 / .83 / 1.73 / .03 / .01 / .94 / .00
Reappraising Gods Power / -.10 / .62 / -.01 / .89 / 1.22 / .05 / -.96 / .66 / -.09
Benevolent Reappraisals / .22 / .58 / .03 / -.39 / 1.14 / -.02 / .38 / .62 / .04
Punishing God / .05 / 1.17 / .003 / 5.87 / 2.31 / .18* / -3.1 / 1.3 / -.16*
Note. *p < .05, **p < .01 a Higher scores indicate less economic pressure bHigher scores indicate more economic pressure
Discussion
• Emerging adults reported experiencing the impact of the US economic crisis in their daily lives. Adults who reported having to make more personal economic adjustments as a result of the financial crisis generally reported less life satisfaction, and higher levels of depressed mood and anxiety.
• Consistent with life course theory, young adults persevered independently during the economic crisis and generally did not report much use of secular coping or religious meaning-making skills to manage economic challenges that they faced.
• Emerging adults who generally reported using education and proactive communication to manage economic stressors also reported higher levels of well-being.
• Although accounting for little overall variance, emerging adults who reported appraising financial stressors as punishment from God also reported lower levels of well-being.
• Emerging adults reported feeling the strain of the current economic situation and may benefit from working with university and community-based professionals who can address concerns about individuals’ economic future.
• Engaging in intervention programs – such as learning problem-focused coping – and information sessions about the effects of the economic crisis on personal well-being may also prove useful for emerging adults.
• Community psychologists can work to better understand multiple contexts impacted by the US financial crisis.
Please direct correspondence to Erica Hoffmann,