Perceived Mental and Physical Health During the Pandemic: The Role of Financial Stress

Abstract

This study uses the double ABC-X model to explore the link between COVID-19-induced stressors and health outcomes. Analyzing a unique online survey of 2,290 respondents in 2021, our results suggest that the process behind the relationship between financial strain and health is nuanced where financial stress plays an important role. Specifically, the results reveal that changes in income, employment status, and expectations regarding future income significantly affect perceived mental and physical health, with financial stress acting as a significant mediator. Our findings imply that financial counseling could be more effective if the client’s idiosyncratic coping mechanisms such as their financial stress are incorporated in the practice beyond quantitative analyses. Our findings provide directions for future research, as well as implications for financial counselors, healthcare providers, and policymakers.