Relationship between Financial Stress and Young Adults’ Psychological Distress

Recent studies have shown that approximately 1 in 3 young adults experience significant financial stress which leads to heightened anxiety levels prompting us to test this growing relationship between economic instability and young adults’ mental health. Understanding how economic instability, insecurity, and debt contribute to the rising anxiety that is commonly observed among young adults and explores its psychological effects is very crucial for preventing financial stress on them. By analyzing existing research on income, socioeconomic class, and mental health outcomes this review demonstrates how financial pressure correlates to chronic stress, uncertainty about futures in both young adults which can lead to physical problems as well. The paper further highlights young adults as a particularly vulnerable group to impacts of financial anxiety because of their limited financial independence, debts from colleges and universities, and uncertain future which can lead to psychological distress. Not only do these burdens cause psychological distress but also, early socioeconomic stress is associated with long-term mental and physical health consequences, including elevated BMI, hypertension, and eating disorder symptoms into adulthood.