FINANCIAL HARDSHIP, PSYCHOLOGICAL DISTRESS, AND RELATIONSHIP FUNCTIONING

Abstract

This dissertation aimed to expand understanding of the impact of financial hardship on individual and relationship well-being within Black and Latinx populations during a time when these groups were facing disproportionately high economic challenges due to the COVID-19 pandemic. This goal was achieved through a comprehensive literature review and two empirical studies. The literature review highlighted the need for further research on the impact of financial hardship on psychological distress and relationship functioning in Black and Latinx during the COVID-19 pandemic. The literature review suggested that, although the link between financial hardship and psychological distress had been studied during the COVID-19 pandemic, research on potential moderating and mediating mechanisms, such as race-based trauma and social exclusion, remains unexplored.The first empirical study aimed to expand understanding of the association between pandemic related financial hardship and psychological distress, as proposed by the Family Stress Model (FSM; Conger et al., 1994), in Latinx and Black adults by examining potential mediating and moderating factors. Using the FSM framework, this study analyzed secondary data from non-Latinx Black (n = 355) and non-Black/non-White Latinx (n = 46) adults who completed the Maryland Pandemic Survey (UME, 2021) during the COVID-19 pandemic. The path analysis results showed a positive and significant relationship between pandemic related financial hardship and psychological distress. The study found a significant mediating role of pandemic related difficulty in accessing mental health care in the relationship between pandemic related financial hardship and psychological distress. Specifically, pandemic related financial hardship was positively associated with pandemic related difficulty accessing mental health care, which in turn, was positively linked to psychological distress. The second empirical study aimed to test FSM comprehensively by including all mediating mechanisms through which financial hardship may be associated with relationship dissatisfaction in both partners and to evaluate potential racial-ethnic differences by comparing Latinx and non-Latinx Black couples with non-Latinx White couples. Using baseline data from a federally funded relationship education program (collected between 2020 and 2023 during the COVID-19 period), the study conducted a path analysis to test the hypothesized relationships among heterosexual couples in which both partners identified as non-Latinx Black (n =167 couples), non-Black/non-White Latinx (n =78 couples), and non-White Latinx (n = 47 couples). Consistent with the FSM, results indicated a significant indirect positive relationship between each partner’s financial hardship and their hostility towards their partner, mediated by increases in their own psychological distress. Also consistent with FSM (Conger et al., 1994), there was an indirect positive relationship between each partner's psychological distress and their partner’s relationship dissatisfaction, mediated through increases in their own hostility towards their partner. In line with FSM’s hypothesized full pathways of influence, each partner’s financial hardship was positively and indirectly related to their partner’s relationship dissatisfaction (partner effect) through increases in their own psychological distress and hostility towards the other partner. Additionally, each partner’s financial hardship was indirectly related to their own relationship dissatisfaction (actor effect) through the same pathways of influence. The results highlight that financial hardship exacerbates psychological distress and relationship functioning, particularly among Black and Latinx populations. Barriers to mental health access and increased hostility within relationships were pivotal in linking financial hardship to adverse outcomes. These findings particularly emphasize the need for inclusive, culturally attuned support systems, as well as policy and programming efforts to mitigate the dual impacts of financial hardship on vulnerable communities during crises like the COVID-19 pandemic.