Adolescent Predictors of Financial Hardship in Young Adulthood: A Cross-National Comparison

Economic factors are an important social determinant of health. Financial hardship in young adulthood is particularly concerning, given current inflation rates, high housing prices, and rising cost of living. Yet, we know remarkably little about the socioecological factors in adolescence that influence later risk for financial hardship in young adulthood above and beyond family socioeconomic circumstances.

Multivariable ordered logistic regression analyses using cross-national longitudinal data from the International Youth Development Study explored associations between a range of socioecological factors in adolescence and financial hardship in young adults. Participants from Washington State (the United States) and Victoria (Australia) were surveyed at ages 13, 14, 15 (2002-2004), and 25 years (2014-2015; N = 1,945; 51% female).

At least two indicators of financial hardship were reported by 25% of young adults. Multivariable predictors of financial hardship in young adulthood included higher levels of family conflict, a history of school suspension, and academic underperformance. Early family economic disadvantage was no longer significant after adjustment for adolescent influences.

Findings suggest that there are modifiable adolescent socioecological factors that influence young adult financial hardship beyond the economic position of the family unit. Exploring when these factors emerge from childhood to adolescence is recommended as this could inform the development of prevention and intervention strategies that respond to these risks at the earliest point in the life course, with the goal of shifting the rate of financial hardship in young adults, and ultimately improving their health and well-being.