The Link Between Adverse Childhood Experiences and Financial Security in Adulthood

Abstract

This study provides an evidence-based link between adverse childhood experiences (ACEs) and adult financial wellbeing. Drawing on a comprehensive financial wellbeing framework that was developed by the Consumer Financial Protection Bureau, we analyze data from the Behavioral Risk Factor Surveillance System, a survey designed primarily to measure health behaviors and outcomes, but which also asks about financial wellbeing aspects such as food and housing security. We use ordered probit analysis to investigate how respondents' self-reported levels of food security and housing security are influenced by demographics that include remembered ACEs and find that, at various income levels, financial stress in adulthood is related to childhood trauma. This interdisciplinary approach to studying financial outcomes extends work in public health and psychology that establishes a link between ACEs and adult physical and mental health measures. The finding is timely as policy makers craft responses to global public health, financial, and other shocks. Recognizing this link between ACEs and adult financial wellbeing provides additional evidence that educators, therapists, social workers, and other professionals should collaborate and develop integrated practices to prevent or reduce ACEs and promote resilience.

Adverse childhood experiences are associated with a higher risk for increased depressive symptoms during Covid-19 pandemic – a cross-sectional study in Germany

“…In a recent cross-sectional online survey in an Austrian sample, no work and low income were predictors for higher symptoms of depression and anxiety during the pandemic [ 16 ], just as discontinued working activity in an Italian sample [ 43 ] and economic stressors in a US sample [ 15 ]. ACEs are known to increase the risk for a lower household income, but also financial wellbeing and financial literacy [ 31 ]. The modifying effect of income loss on change of depressive symptoms during the pandemic was even higher compared to ACEs.…”

“…Lower social support, associated to the experience of childhood adversity [ 28 ], was shown to mediate the association between ACEs and mental health [ 29 , 30 ]. ACEs are associated with lower household income, but also with financial wellbeing and financial literacy [ 31 ].…”

Associations Between Mothers’ Adverse Childhood Experiences, Material Hardship, and Breastfeeding Challenges in the United States

“…Potential associations between ACEs, material hardship, and breastfeeding are complex and warrant future research. ACEs may put individuals at increased risk for material hardship (Harter & Harter, 2021); similarly, material hardship can increase trauma risk (Conrad-Hiebner & Byram, 2020). Mediators for these relationships vary and include physical and mental health challenges, limited support, and other social determinants of health that can create barriers to breastfeeding goals (Watson et al, 2021).…”

Experiential Learning Through the Creation of an Investment Lab

“…There are numerous studies that analyze how games and simulations in business or economics classes promote students' awareness and enthusiasm. Harter and Harter (2010) studied financial literacy among high school students and revealed that stock market simulations can significantly enhance financial knowledge among these students. Cebula and Toma (2002) discovered that these sorts of activities have a beneficial effect on students.…”