The Psychological Toll of Familial Financial Support among Young Adults: Does Parental Coresidence Matter?

• In Event: 50261 - Family Section Roundtables
  In Refereed Roundtable (60 minute): Table 9: Intergenerational Relationships

Abstract

How does familial financial support relate to young adults’ psychological health? Does the relationship differ by parental coresidence? Using data from the Transition to Adulthood Supplement (TAS) of the Panel Study of Income Dynamics (PSID), this study examines the association between familial financial support and mental health outcomes among young adults as well as the moderating effect of parental coresidence. Overall findings revealed that among young adults who do not live with parents, receiving familial financial help for their expenses or bills was associated with higher levels of depressive symptoms. The same effect was not observed among young adults who live with their parents. The findings suggest that leaving home is an important marker of adulthood and being financially dependent on family members after leaving home, which goes against typical maturity norms, can undermine young adults’ sense of independence and lead to a higher risk of depression.

Author

• Sarah Song, University of Texas at Austin