Utilizing a sample of 4182 U.S. emerging adults and structural equation modeling, we examined how parent financial socialization received during childhood and adolescence is associated with mental health in emerging adulthood and whether locus of control is an intervening variable. Financial socialization was negatively associated with anxiety and depressive symptoms, and positively associated with life satisfaction. Indirect pathways were found through locus of control. That is, emerging adults who had received better financial socialization were more likely to report an internal locus of control and thus were less likely to be experiencing anxiety and depressive symptoms and more likely to be satisfied with life. These findings provide educators with further evidence of the importance of parent financial socialization, being associated with not only financial health but also mental health. Clinicians of emerging adults may consider financial education and internal locus of control development as intervention points for mental health improvement.

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Many emerging adults have experienced increased financial distress and mental health problems during the COVID-19 pandemic, and isolation may have amplified the importance of close relationships (especially as parents’ influence diminishes during this developmental stage). Using the ABC-X Model to frame our model, we tested whether financial distress (C) mediates the associations between COVID-19 impact (A) and anxiety and depressive symptoms (X), and whether or not romantic relationship quality (B) moderates these indirect associations. Our sample comprised of 1950 U.S. emerging adults in a romantic relationship. Mediation and first-stage moderated mediation were tested using structural equation modeling. Financial distress partially mediated the association between COVID-19 impact and anxiety symptoms and fully mediated the association between COVID-19 impact and depressive symptoms. Strong evidence of moderated mediation was found but in the opposite direction expected: the indirect associations of COVID-19 impact with anxiety and depressive symptoms (through financial distress) were stronger for those in high-quality romantic relationships. The findings may inform policy and practice aimed at optimizing the mental health of emerging adults, especially in light of the ongoing COVID-19 pandemic: specifically, alleviating financial distress may improve the mental health of emerging adults, while focusing on the quality of their romantic relationships may not.