On University of Southern California Dornsife Week: What happens in childhood has an impact – especially when it comes to money.

Deborah Finkel, research professor at the center for economic and social research and department of psychology, examines why.

Deborah Finkel is a research professor (50%) at CESR. She earned her PhD in behavior genetics from the University of Minnesota in 1992. Since 2018, she has also served as professor of psychology (50%) at Jönköping University in Sweden. Her research explores genetic and environmental contributions to cognitive aging using longitudinal twin data, with related work in physical aging, self-rated health, and health disparities. She has worked extensively with Swedish twin studies, is PI of GENDER (a study of opposite-sex twins aged 70+ in Sweden), and serves on the leadership team of IGEMS (Interplay of Genes and Environment across Multiple Studies). She also collaborates on extending the Louisville Twin Study into midlife. Deborah is past president of the Behavior Genetics Association and a fellow of the Gerontological Society of America.

Childhood Money Stress Can Leave a Lasting Mark

To find out, my team and I analyzed data from the Swedish Twin Registry—one of the world’s largest and longest-running studies of twins, tracking the health and psychology of more than 1,600 adults. Because it spans decades, the registry let us trace how early financial hardship in childhood shapes emotional well-being later in life.

We discovered that people who experienced financial stress in both childhood and adulthood were more likely to report symptoms of depression, anxiety, and loneliness as they aged. These symptoms also appeared earlier — in their 50s — nearly 20 years sooner than among those who grew up financially secure.

Notably, emotional distress was strongest when financial strain persisted over time. And even if someone’s income improved later, the early hardship still had lasting effects.

In contrast, those who had financial security in childhood didn’t see significant increases in anxiety or loneliness until after age 70 — suggesting early financial stability may delay changes in emotional health that can occur with aging.

We also examined how people felt about their financial stability — whether they had enough for housing, food, or emergencies. That subjective feeling of financial strain, not just income or job status, was strongly linked to emotional health in late adulthood.

The encouraging news: People who improved their financial situation over time reported lower levels of loneliness, pointing to a protective effect of upward mobility.

Our study underscores the long reach of early financial stress and the value of supporting vulnerable families to both ease hardship now and support emotional well-being decades down the line.

Read More:

[USC Dornsife] – The lasting toll of financial strain

[Taylor & Francis] – Both childhood and adult perceived financial strain impact age trajectories of change in emotional health in late adulthood

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