Responses to Economic Pressure by Low-Income Families: Financial Distress and Hopefulness

Based on Boss’ family stress model, the study examined whether financial adaptations and locus of control mediated levels of financial distress and hopefulness for low-income consumers experiencing economic pressure. Data were collected online from 221 low-income, Midwestern consumers. Structural equation modeling explored relationships. Those reporting more economic pressure reported higher financial distress, less hopefulness. When locus of control was more internal, however, participants reported less financial distress and more hopefulness. Those making more financial adjustments had more financial distress, but also more hopefulness, indicating that while the current situation was grim, adaptive responses fostered hopefulness that things would improve. Educators can emphasize financial behaviors that improve financial outcomes, facilitating greater perceived control over finances, more hopefulness, and reduced financial distress.