Financial Loss and Financial Well-Being of Emerging Adults During COVID-19: The Limitations of Psychological Resilience

Amid the COVID-19 pandemic, emerging adults are especially vulnerable as they experience its financial impact as a source of stress. We tested a model of psychological resilience among emerging adults (18-25 years) during using online survey data collected between May and September 2020. Framed in the conservation of resources theory, we examined the association between financial loss and financial well-being and the moderating role of psychological resilience in the association. Using path analysis, we found a direct negative association between financial loss and financial well-being, a direct positive association between psychological resilience and financial well-being, but no evidence of moderation. We discuss the findings in the context of continuing global economic uncertainty and the support needed to foster adult independence and financial well-being of emerging adults.