Stress about money doesn't just weigh on us in the moment. According to a new study published in Aging and Mental Health and led by a researcher at the USC Dornsife College of Letters, Arts and Sciences, it can echo across decades - leaving a measurable imprint on emotional health well into older age.
Psychologist Deborah Finkel, a research scientist at USC Dornsife's Center for Economic and Social Research, led a team that analyzed existing survey data from 1,600 adult participants from the Swedish Twin Registry - a long-running longitudinal study designed to track health and psychological outcomes over time. The dataset included participant responses about recalled financial strain in childhood, reported financial hardship in adulthood, and current symptoms of depression, anxiety and loneliness.
The study found that people who experienced financial strain, either in childhood, adulthood or both, were more likely to report emotional distress well into older adulthood, including into their 70s and beyond. The link was especially clear when economic stress accumulated over time.
"Even when people's financial circumstances improve later in life, the emotional residue from early hardship can linger far longer than we expect," said Finkel. "Financial stress creates surprisingly long-lasting consequences."
Unlike many previous studies, this one focused not just on income or job status but on subjective financial strain - whether people felt they had enough to cover basic needs like housing, food and an emergency buffer. These self-reported financial pressures were meaningfully associated with emotional health outcomes in later life
"Because this strain is based on how people perceive their financial stability, not just how much they earn or what degrees they hold, it may better reflect the lived reality of daily stress and coping capacity," Finkel said.
It's the accumulation that hurts
People who faced financial hardship both as children and as adults were more likely to experience emotional struggles later in life. Depression, anxiety and loneliness were all more common - and more severe - when financial strain happened at multiple stages of life.
Childhood financial hardship appeared to have especially lasting effects: "People who experienced financial hardship in childhood started showing symptoms of anxiety and loneliness nearly two decades earlier than those who grew up with more financial security - often as early as their 50s instead of their 70s," said Finkel.
Financial improvement can still help
The study also pointed to a hopeful finding: participants who experienced financial strain in both childhood and adulthood reported the highest levels of loneliness. However, those who improved their financial situation over time experienced somewhat lower levels of loneliness, suggesting that upward financial mobility may help protect against emotional isolation later in life.
"That was one of the more encouraging patterns we saw," Finkel said. "It suggests that while early hardship matters, it doesn't seal your fate. Improving your financial situation can still make a meaningful difference for your emotional health, even later in life.
About the research
The study was co-authored by Martin Hyde (University of Leicester), Caroline Hasselgren (University of Gothenburg), Lawrence Sacco (Stockholm University), Shireen Sindi (Karolinska Institutet and Imperial College London) and Charlotta Nilsen (Karolinska Institutet and Stockholm University), alongside lead author Deborah Finkel of USC Dornsife and Jönköping University.
The work was supported by Forte: Swedish Research Council for Health, Working Life and Welfare (2023-00147), the Swedish Research Council (2023-01995) and the National Institute on Aging (R01AG081248).
