case study about family financial problem

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Family financial management involves decisions based on both economic and social factors, including the quality of life and well-being of all family members. Family composition changes throughout the life course of people, including formation and re-formation, and are affected by laws, regulations and policies at multiple levels, from local or national. Six case studies were developed for students to critically think about and through the myriad of decisions that diverse families make as manage their lives and financial resources. Each case study features a different family type: a relocating family with same-sex parents, an uncoupling family with heterosexual parents, widowhood, coupling, a divorcing gay couple, and a single parent family all within the context of current events in the U.S. For each, students are asked by their employer or in a professional role to prepare a report that makes use of highly credible and trusted sources of information and a chart or table as well as a recommendation for the family. To further student learning, four reflection questions were also developed.

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Family Financial Management Case Studies (an OER resource) Copyright © 2023 by M. E. Betsy Garrison is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License , except where otherwise noted.

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Conclusion and implications, acknowledgments, conflict of interest.

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Successful Family-Driven Intervention in Elder Family Financial Exploitation: A Case Study

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Tina R Kilaberia, Marlene S Stum, Successful Family-Driven Intervention in Elder Family Financial Exploitation: A Case Study, The Gerontologist , Volume 62, Issue 7, September 2022, Pages 1029–1037, https://doi.org/10.1093/geront/gnab145

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The prevalence and consequences of elder family financial exploitation reinforce the need for a range of effective intervention strategies. This article describes how and why one family successfully intervened in the family-based financial exploitation, constructing, and achieving meaningful processes and outcomes for the specific family and context.

Case data analysis and interpretation were guided by Stake’s (2015) systematic phases of case summary (factual information), inductive case themes (issue relevant meanings), and case features (abstractions to the existing knowledge). The case was selected from a larger study examining the meaning and experience of elder family financial exploitation based on the following case boundaries: reliance on family members with minimal private sector support, no report to the authorities, and successful outcomes for the victim, perpetrator, and the family system.

The case family successfully resolved family-based financial exploitation by (a) honoring the victim’s wishes, (b) providing support and accountability for the perpetrator, (c) restoring family relationships and functioning, and (d) family-driven decision making. A family systems approach and the application of restorative justice principles are identified as overarching case features.

As a study of a previously undocumented experience of successful family involvement, the case findings are useful for researchers and practitioners when constructing and examining the effectiveness of future intervention strategies.

Knowledge and understanding of effective interventions and what works to resolve elder abuse of all types is a recognized gap ( Burnes, 2017 ; Burnes et al., 2020 ). Using a single case inquiry ( Stake, 2005 ), considered appropriate when presenting previously undocumented experiences, this article describes how and why one family achieved meaningful intervention processes and outcomes when faced with elder family financial exploitation (EFFE). A review of the literature reinforced that this article contributes the first descriptive case study of a family-defined successful intervention without the involvement of formal systems. We present a case description and several stages of interpretative analysis, providing a needed understanding of the interwoven nature of family-driven successful intervention and the specific family and EFFE contexts ( Stake, 2005 ).

One of the most prevalent types of elder abuse globally, EFFE takes place in the context of family relationships when a family member, often an adult child, illegally or improperly uses an older adult’s funds, property, or assets ( De Liema, 2018 ; Pillemer et al., 2016 ). The prevalence of EFFE is widespread, affecting approximately one in 15 older adults worldwide ( Yon et al., 2017 ). Evidence indicates family members are the most common perpetrators of financial exploitation, not strangers ( De Liema, 2018 ). The consequences of EFFE go beyond economic losses, with significant physical, psychological, and social health and well-being consequences for older victims, and ripple effects for millions of family members, communities, and societies ( Acierno et al., 2019 ).

Existing elder abuse literature has recognized the need to understand a broad range of intervention strategies, including various informal roles and involvement in addition to formal interventions ( Burnes, 2017 ; Burnes et al., 2020 ; Fraga Dominguez et al., 2019 ). A majority of elder abuse intervention strategies to date, including for EFFE, have focused on the role and effectiveness of formal systems (e.g., police, legal systems, adult protective services; Burnes, 2017 ). However, it is well recognized that a majority of victims and family members never interact with formal systems ( Acierno et al., 2020 ). Informal supports have been found to be useful and generally preferred over formal sources of help ( Fraga Dominguez et al., 2019 ).

Breckman et al. (2018) called attention to the critical and unique role and experience of concerned persons, defined as nonabusing family, friends, and neighbors involved in informally supporting elder abuse victims, 60% of whom chose to engage in a helping role. This and other studies of informal support find that concerned persons generally serve as an enabling resource for victims by taking on multiple helping tasks, referring, and linking victims to formal services ( Breckman et al., 2018 ; Burnes et al., 2016 ). Interventions involving victims and concerned family members (CFMs) have shown to be effective financial dispute interventions to avert full court proceedings, such as the Australian mediation-based intervention that prevented or stopped financial abuse for over half (59%) of victims and family members ( Bagshaw et al., 2015 ). This was the only family-focused intervention addressing financial abuse among studies of community-based interventions for elder abuse and neglect reviewed from 2009 to 2015 ( Fearing et al., 2017 ).

The knowledge generated from the above studies demonstrates the interdependent, reciprocal, and nested contexts of individual family members within a family social unit, and families being further imbedded within broader social and cultural systems of the environment, reflecting an ecological systems framework ( Bronfenbrenner, 1979 , 2005 ; Chan & Stum, 2020 ). The importance of applying such frameworks has been recognized when developing and delivering community elder mistreatment interventions ( Burnes, 2017 ). In theory, an ecological systems intervention would recognize the influence of multiple system levels when addressing elder abuse (e.g., victim, perpetrator, larger family systems). A scoping review revealed great disparities in the system levels being addressed in elder abuse interventions, finding a majority of outcomes focused on one system level, typically victims, some on perpetrators, and one on a family system ( Burnes et al., 2020 ). Informal family involvement is largely invisible and unrecognized as a critical piece of the interdependent, nested ecological systems intervention puzzle.

There are significant gaps in understanding success as a result of CFMs intervening on behalf of victims. This is due to several factors. First, there are varying elder abuse definitions, a focus on barriers to service use versus facilitators, and limited studies across elder abuse subtypes and social contexts ( Fraga Dominguez et al., 2019 ). When objective and validated measures of formal system intervention effectiveness have been documented (e.g., reducing/stopping abuse, accessed services, cases resolved), it remains unclear whether victims and family members’ perceptions of success would actually overlap ( Burnes et al., 2020 ; Fraga Dominguez et al., 2019 ). Westmarland and Kelly (2013) illustrated in the broader field of family violence a differentiated understanding of success, including partners’ relationship, empowerment, safety, coparticipation, awareness, and inclusion of children’s voices. This meaning of success extended beyond typical outcome measurements such as no additional calls to the authorities or no recurrence of physical abuse.

Second, the meaning of success can be highly subjective, influenced by the specific EFFE context, individual CFMs, formal and/or informal systems involvement, cultural norms, etc. For example, family contextual factors potentially influencing EFFE family involvement and the meaning of success can include power and control dynamics across generations, issues of mistrust imbedded in a long family history, cultural norms of financial privacy, pride, exchange, and entitlement to family resources, and unresolved relationship conflicts ( Betz-Hamilton & Vincenti, 2018 ; Wendt et al., 2015 ). Understanding the subjective meaning of success from the perspective of victims and other stakeholders in the family system (perpetrators, CFMs) is critical whether interventions are informal, formal, or a mix ( Burnes et al., 2020 ).

A handful of EFFE literature, of which all are descriptive case studies from the perspectives of family members, provides some insight into the meaning of family involvement and offers cues about the subjective meaning of success. Zannettino et al. (2015) described the experience of a concerned son choosing not to intervene to help the victim (his mother), disclose to anyone outside the family, or try to resolve the situation. The case illustrated that assumptions about success were ensconced in cultural and family norms of intergenerational responsibilities, keeping family matters private to avoid shame in the community, and preempting threats and consequences from the perpetrator toward the victim and two nonperpetrator siblings. Two additional cases described personal intervention experiences in the United States ( Beidler, 2012 ; Horry, 2014 ). Both cases rested on assumptions of success by extending intervention to include formal systems: highly engaged CFMs (granddaughter, niece) faced complex challenges, intensely advocated for the victims’ health and well-being, coped with consequences on personal well-being and family relationships, and shared failures of formal systems. In all three cases, the meaning of success varied depending on key helpers, type of help sought, and the extent of formal versus informal help.

Case Study Inquiry

We rely on Stake (2005) for our case study inquiry given the alignment of Stake’s approach with the attributes of social constructivism guiding the larger EFFE study ( Stum, 2014 ) from which the case is drawn. Stake’s case study approach focuses on understanding the complexities and meaning of interpersonal processes and outcomes within contexts. Following Stake’s approach, a single case study inquiry requires a clearly defined and bounded case as the unit of analysis. The “case” (pseudonym “Family K”) is delimited by the following boundaries: (a) the family relied on the involvement of family members with minimal private sector supportive services; (b) the case was not reported to any authorities; (c) the case included intervention processes and outcomes defined by the participating CFM as successful for the victim, perpetrator, and family system. Taken together, these attributes reflect successful family intervention outcomes previously undocumented in the literature, justifying the use of a single case inquiry ( Stake, 2005 ).

Participant Recruitment and Description

Following Institutional Review Board approval, the case study CFM (nonabuser, nonvictim) was recruited as part of a voluntary sample of 28 CFMs who self-identified as having experienced EFFE. A network of practitioners in a Midwestern statewide elder justice network (e.g., private attorneys, county workers, social workers) was utilized to recruit the CFM. The CFM retrospectively shared her family’s EFFE experience that had been occurring in the 3 years prior to the interview. Her account was taken at face value, without being able to substantiate that EFFE occurred, or take into account the views and perspectives of all involved family members. The CFM was the granddaughter-in-law of the victim, in her 40s, White, married, employed full-time, college-educated, and living in a Midwestern metropolitan area.

Data Collection

The CFM completed a semistructured in-depth interview lasting 80 min and a written survey. Interview questions focused on understanding the family composition, key stakeholder roles, and involvement in the EFFE experience (e.g., victim, perpetrator, CFM, family of origin). The CFM was asked to share her EFFE story, including how and why EFFE occurred, discovery processes, reactions, actions taken, intervention motivation and goals, systems involvement (formal elder abuse, other community resources), costs and consequences for the older adults, perpetrator, CFM, and family as a unit, ending with lessons learned. The interview was audio-recorded, transcribed verbatim by a professional transcriber, and de-identified. The written survey gathered demographic descriptions of the CFM, victim, and perpetrator, as well as information on the victim’s decision-making plans (e.g., powers of attorney, will) and the quality of family relationships when growing up, as an adult before EFFE, and currently.

Case Analysis and Presentation

Case data analysis and interpretation were guided by Stake’s (2005) systematic and layered phases of case summary (factual information), inductive case themes (issue relevant meanings), and case features (abstractions to existing knowledge). To establish credibility and interrater agreement and reliability in all data analysis phases, both authors (T. R. Kilaberia and M. S. Stum) independently read and re-read data sources, made analytic memos regarding reactions to the data, discussed conflicting data interpretations, explored alternative views, and reached consensus ( Creswell, 2016 ; Stake, 2005 ).

A first analysis step involved constructing a narrative-based descriptive case summary with the purpose of reflecting the “facts” within the specific EFFE and family context. The case summary was developed by both authors reviewing and utilizing all Family K data sources. The CFM’s transcript was then used to inductively identify intervention process and outcome themes (issue-relevant meaning units) attributed as meaningful by the participant based on the family and EFFE context ( Table 1 ). The final phase of case analysis involved direct interpretation, connecting what was meaningful about successful intervention to the participant (the themes) to overarching and higher-order case features identified from the researchers’ frame of reference and grounded in the larger literature ( Table 1 ). The themes were examined as an integrated whole, looking for commonalities and overarching features. For example, the authors identified and discussed specific examples of the restorative justice ethos in each of the individual themes, comparing and contrasting with formal restorative justice principles and assumptions, leading to the identification of restorative justice as a case feature.

Inductive Development of Within-Case Themes and Features

Following Stake’s (2005) suggested presentation approach, we begin with the descriptive case summary, followed by within-case themes and verbatim quotes to illustrate. Discussion follows situating the thematic findings in the extant literature and introducing direct interpretation case features, connecting the features to existing concepts and theories.

Case Summary

The case involved a mother, Ollie, in her 80s, who was the victim, living in a Midwestern city of about 13,000 in population, designated as a Metro area; a daughter, Trina, in her 50s, who was the perpetrator; and 14 other family members from three generations who collectively participated in resolving the EFFE situation. Of nine siblings in total, two brothers and two sisters were highly involved; other siblings and in-laws were involved at a distance. The case as narrated by Sidney, the participating CFM, an in-law to Ollie, and a partner of Sam (one of Ollie’s nine adult children) follows. All names are pseudonyms.

After a third divorce, Trina (the perpetrator), in her 50s, moved in to live with Ollie (her mother and victim), 86 years of age. Ollie had worked as a medical professional well into her advanced age to secure enough savings for herself. Trina worked as a professional in the insurance industry. Trina had always been a major social connection between family members as she organized family events and kept everyone connected. She had also often provided support for her siblings when they needed it.

Part of the shared living arrangement was for Trina to have a place to stay and for Ollie to have a caregiver. Due to Ollie’s forgetfulness (no diagnosis of dementia), Trina had been entrusted by the family members to be the Financial Power of Attorney for Ollie even before Trina moved in to live with her. Trina had had a history of substance abuse, different jobs beginning in her 20s, and unethical job performance. Ollie had helped Trina in times of difficult life transitions, by having Trina’s children live with her temporarily, as needed.

The couple, Sidney (participating CFM) and Sam (Ollie’s adult child), noticed behavior changes in Trina over a period of time: Trina did not participate in a major family event, would not answer phone calls, and would not be available for childcare. Knowing Trina’s history of addiction, they asked Trina whether she was using alcohol or drugs again. Trina responded that she was not. The couple suspected that Trina was gambling, but they did not suspect that Trina “was stealing to gamble. We thought she was just using her own money.” Nine months later, Trina confessed to financially exploiting her mother Ollie. Trina had scheduled a surgery, had hoped to obtain enough pain medication as a result of the surgery to then kill herself with it when the couple would be on vacation.

Over the course of approximately a year and a half, Trina first lost to gambling her own money she had received as a result of divorce proceedings. Trina then lost an estimated $120,000 of Ollie’s money, depleting her bank accounts and taking out joint credit cards to be able to spend money.

Successful Intervention Themes

Four guiding themes were identified as contributing to successful intervention processes and outcomes: (a) honoring victim’s wishes and safety, (b) perpetrator support and accountability, (c) restoring family relationships and functioning, and (d) family-driven decision making.

Honoring Victim’s Wishes and Safety

Family K “took our cues” from Ollie and honored Ollie’s expressed wishes. Ollie had been very involved in the community throughout her life, did not want the EFFE experience widely known, and did not want any reports of the exploitation to be made to authorities. The family honored this expressed wish and kept the matter “very contained. […] everybody followed [Ollie’s] lead in terms of not notifying anybody and having a lot of respect for that.” Family members determined early on that adversarial or punitive accountability mechanisms that required “somebody going to jail” would be undesirable. They perceived it would be a greater stress for Ollie to cope with the intervention of authorities than it would be for the family to resolve the issue without outside intervention:

What was so complicated about this stuff is that if the police had come and intervened and if there’d been a big institutional sort of response to this, that would have aged her [Ollie] even more, because she would have been so ashamed if it would have been public […] she would have watched her daughter suffer these awful consequences. […] Here she is at the end of her life, she was watching her son die [due to an illness], and she didn’t want to lose another kid.

Over a period of 8 weeks after the discovery, Family K worked to establish safeguards. Trina actively participated in the process: checks and balances were put in place to monitor and “comply” with the family plan created with Trina’s input. Trina agreed to immediately move out of Ollie’s house and accepted the offer to move in with Sam (sister) and her family, staying for 8 weeks while she was recovering from her medical surgery. Sam and her family “were ready to figure out how to have [Trina] just live with us permanently. Because we thought it just would not be right for her to go back” [to live with Ollie]. Trina’s access to Ollie’s bank accounts and mail was stopped. Sam took over as Financial Power of Attorney for Ollie. Family K established a third party for Trina to help her manage her own finances.

Perpetrator Support and Accountability

Ollie’s second expressed wish was for Trina to get help and eventually reunite with her. Throughout the helping process, Family K kept the perspective that the exploitation was about “an addict’s calamity versus a criminal activity.” Holding this view, immediate and extended family members offered empathy and understanding to Trina. They listened when Trina relayed that it had been difficult being the sole caregiver to Ollie, that her caregiving had been unseen and unappreciated, and that she had relied on gambling as a way to cope.

Trina actively sought help for her addiction by attending Gamblers Anonymous (GA) and Alcoholics Anonymous (AA) meetings. Family members regularly checked in with her to understand and support her recovery. Over time, in treatment, and in periodic conversations with family members, Trina understood that her pattern was that of someone who had relapsed. By considering her actions, changed or lost relationships, and rejections by some siblings, she experienced a renewed perspective. Family members thought that such an awakening was of far greater consequence for her than any she could have experienced as a result of formal systems involvement:

Through the addiction treatment, and also through the deep shame she experienced, and then the rejection by her brothers; all of that sort of together. And then she, you know … she did go through this spiritual transformation through it all […] There are definitely security measures in place. And her promise that it would never happen again, and her recovery through … you know, she went to treatment. She continues with going to GA on a weekly basis, she’s continuing to actively engage in her addiction program. And you know, those are the things that demonstrate to us that she is trustworthy. Even though it’s kind of … you know, she shattered it.

Trina was grateful for the opportunity to pay Ollie back, and did so, in full, over a period of 3years, to compensate for monies taken from Ollie: “She [Trina] is almost done paying her [Ollie] back, which is pretty amazing. Just in a couple of years, three years, she’s almost paid back all the money.”

Restoring Family Relationships and Functioning

As safeguards were put in place to prevent further victimization, and after Trina sought help, she reunited to live with and be a caregiver for Ollie. Over time, Ollie and Trina repaired their relationship and each benefited from the living and caregiving arrangement: “her [Ollie’s] relationship with her daughter [Trina] is still intact. And might be better now than it was before. And I am not saying because of what had happened, but because of the process that [Trina] had to go through.”

Other family members were able to maintain relationships with Trina and as a collective intergenerational family unit (e.g., siblings, in-laws, grandchildren). Although family relationships were reconsidered and were not what they used to be, Trina remained a part of the family’s future. Some family members who had, prior to the exploitation, considered Trina as a decision maker in cases of emergency or major family events no longer trusted her to be able to fulfill such roles in the future. Other family members viewed Trina’s proactive response and involvement as evidence to trust her again, especially given the safeguards put in place. Sidney (participant) attributed this outcome to the fact that Family K was able to both demand accountability and provide support.

Family-Driven Decision Making: “The Family Came Around and Protected Her”

Different family subsystems comprising Family K worked together to ensure that the intervening and supportive entity was the family itself. The victim, the perpetrator, and seven adult children from the family of origin and spouses/partners (in-laws) from in and out of town defined help-seeking, assumed responsibilities, and implemented accountability mechanisms. One brother advocated for the living arrangement between Ollie and Trina to be formalized as a caregiving arrangement. He also oversaw the process of “financial reparation” while another sibling monitored the progress. Specific family members were designated to oversee Trina’s “compliance” with the accountability plan developed by the family. Family decisions took into consideration family members’ strengths in overseeing entrusted parts of the overall plan and attending to their coping, given all were affected by the process. In this way, the family process itself reinforced a “restorative justice kind of approach”:

It was awful what she did. And there should be some accountability for that. But she also had a lot of accountability in the family too, because when people in the family found out she was shunned by her brothers. As [her brother, now deceased] was dying, he wouldn’t see [Trina] because he was so furious about what she had done. So, there were interfamilial consequences that [Trina] faced that I think were probably graver for her and had more meaning for her than going behind bars or whatever.

Family K insured at every step that they would take the reins to define the problem, determine solutions that best fit their shared values, and assume responsibility to carry out needed help-seeking steps. Reaching out to mutual aid community supports demonstrates the awareness of the family to utilize external resources that are empowering, nonbureaucratic, and nonadversarial (e.g., GA and AA support and money manager for Trina, lawyer for Financial Power of Attorney change). Such help-seeking reflects the family’s assumptions and values about what external help meant to them and at what cost they wanted it. Family K feared that the disclosure of exploitation by Trina at GA meetings would prompt the counselor to report, which would initiate formal systems involvement deemed undesirable by the family from the beginning. The family was relieved that no reporting had occurred.

Family K operated with no expectation of involving authorities, in part because of Ollie’s expressed wishes, and in part because of the belief that involving authorities may be merited for some, but clearly not for their family’s situation.

Ultimately […], my, sort of, philosophical understanding of this kind of abuse, where the victim cannot protect herself …. But, the family came around and protected her, and didn’t maybe need the state, to kind of intervene. Because I think she’s protected at this point. Now she is protected in ways that she wasn’t before, because of what had happened. […] I know these things are really complicated and yet I think she experienced justice. […] I think it’s really important to treat these cases very, very cautiously and carefully.

The case study shows how one family’s EFFE experience and intervention broadens the meaning of “intervention” and “success.” By choosing to get involved and take the decision-making reins, Family K constructed meaningful responses to honor the victim’s wishes, provide support and accountability for the perpetrator, and restore family relationships and functioning. In so doing, Family K determined what success would mean for all involved and subsequently accomplished the goal of resolving EFFE. For Family K, success meant remaining a family while at the same time enacting conciliation between the victim–perpetrator dyad and the larger family system.

Varying perceptions of problems and solutions among family members influence if and how decisions are made about EFFE intervention ( Wendt et al., 2015 ). This in turn influences how families may construct the meaning of success. Family K’s ability to come together and seek shared understanding and input iteratively throughout the process enabled tailoring of support by the family in such a way that accounted for the needs of the victim–perpetrator dyad as well as the larger family system. Family K’s intervention processes capitalized on the strengths within the family system, including close interpersonal relationships, a family history of cohesion, communication, and transparency, and shared filial responsibility norms and expectations. Family K demonstrated that a shared understanding and participation likely accelerated EFFE response in a way that allowed Family K to construct what a successful outcome would mean for their individual and collective relationships, investment, and values.

Respecting a victim’s right to self-determination and safety for the victim are expectations guiding elder abuse community-based protective service systems ( Burnes, 2017 ; Fraga Dominguez et al., 2019 ). However, whether informal interventions do the same is a matter of choice. In Family K’s case, the victim had the capacity to communicate her preferences and wishes, understood the consequences of choices and decisions, was actively engaged in the intervention processes, and was honored by her family in her firm request to handle the matter within the family. In similar cases, developing a range of safeguards, driven by a goal of improving quality of life and financial security outcomes for the victim may be useful facets of an intervention.

Previously, Breckman (2018) showed concerned persons’ willingness to intervene when becoming aware of elder abuse, and an overall lack of support and services for families. This case study illustrates a family-organized process and outcomes attained by a family on its own, with minimal community supports. Family K’s involvement is consistent with the preferences of some elder abuse victims for informal over formal sources of help ( Fraga Dominguez et al., 2019 ). The case reflects that CFMs can be optimally positioned to be EFFE responders, in part because they are not distanced or objective, have access to and knowledge of the victims and perpetrators, and the unique family history and dynamics.

Case Features

Viewing the four case themes in the direct interpretation phase of our analysis, two overarching case features of the family’s successful intervention experience became apparent. For Family K, meaningful intervention processes and outcomes involved taking a family systems approach, as well as a complementary focus on restorative justice principles.

A Family Systems Approach

The case featured a contextually grounded family systems approach to EFFE involvement and intervention. Family K approached EFFE as a stressor event happening to all involved in the multigenerational family system, including the primary victim, perpetrator, and extended family members, whether emotionally or geographically close or distant. Consistent with family systems theory ( Whitchurch & Constantine, 2009 ), the processes and outcomes involved benefited individual family members as well as the collective family system. Family K recognized the interdependent and reciprocal nature of individuals within the family system, identifying important outcomes not only for the victim, but also for the perpetrator and family members. Family K prioritized protecting multiple types of lifelong family relationships in a relatively large family of origin (perpetrator/victim, siblings, parent/adult child, in-law relatives, and across multiple generations). The family’s approach to addressing EFFE recognized that a change in one part of the family system affects the rest of the family social system. As the participating CFM described, helping the perpetrator was closely tied to helping the victim’s overall health and well-being and also helped to keep family relationships and functioning intact.

Family K’s ability to resolve the EFFE situation underscores the importance and impact of addressing EFFE as a contextual family system issue. Burnes (2017) recommended testing the hypothesis that multisystemic interventions incorporating victims, perpetrators, and relevant family members would lead to better outcomes than interventions focused solely on the victim. This case study offers support for the validity of such a hypothesis, suggesting potential family and EFFE contextual factors that may influence intervention outcomes. Family systems theory is an appropriate lens to apply as it is grounded in systems thinking, providing insight into how family members mutually influence and interact with one another ( Whitchurch & Constantine, 2009 ). Researchers and practitioners are encouraged to develop and test approaches informed by family systems theory and broader ecological systems theory ( Bronfenbrenner, 1979 , 2005 ) as a means of improving EFFE interventions.

Restorative Justice Approach

The experience of Family K lends support toward applying principles of restorative justice in resolving EFFE cases. Family K’s intervention actions and the CFM’s words emphasized the importance of “enabling justice” by drawing on principles such as accountability, reparation, and empowerment through support. Restorative justice is a process of administering justice that can be used outside of or in tandem with traditional justice-seeking processes, achieving desired outcomes with smaller costs ( Zehr, 2015 ).

Family K’s focus on restoring justice within the family system reflects three core restorative justice principles: (a) engagement of key stakeholders in determining just processes, (b) accountability of perpetrator and family members to each other, and (c) and restoration of harm that was done ( Zehr, 2015 ). Intentional efforts were made to engage the perpetrator/victim dyad and extended family members in deciding and carrying out EFFE intervention steps. The perpetrator was held accountable by the family, took responsibility for the exploitation, paid back the victim for lost funds, and addressed her underlying addiction issues with support from the family system. Accountability to each other in the family system was also expected as new roles and responsibilities were navigated. Restoration processes went beyond financial reparation and focused on repairing damaged family functioning and relationship ethics in terms of safety for the victim, checks and balances, trust, honesty, and respect between the perpetrator–victim dyad, among siblings, and in-law family members. The family’s approach to just processes allowed family members to engage with betrayal, grief, and loss on their own terms, to voice their regrets and wishes, regain equilibrium, and restore and repair ethical dimensions of family relationships.

Although federal and state judicial systems in the United States support restorative justice, implementation has been slow, in part due to the lack of funding, and the practice has been incremental and in specific geographies rather than nationwide ( Karp & Frank, 2016 ). There is, however, increasing evidence of the benefits of restorative justice. Van Camp and Wemmers (2013) found in a study of victims of violent crimes that practicing restorative justice had flexibility, care, dialogue, and prosocial motivation, benefits over and above those resulting from the quality of the experience of a fair process. Australia’s proven family mediation intervention model addresses EFFE specifically and serves as an example guided by similar restorative justice principles ( Bagshaw et al., 2015 ). Future studies may examine shared ethical values, negotiating what being “just” means, and opportunities for agreement of the victim, perpetrator, and extended family members to be engaged and accountable to each other. Researchers and practitioners are especially encouraged to account for how restorative justice, specifically the construction of just processes and outcomes, may result in experiences of success across varied family and EFFE contexts.

Based on the literature informing this case study, this article contributes the first descriptive case inquiry of a successful family EFFE intervention without the involvement of formal elder abuse systems. Informal family support and involvement are largely invisible and unrecognized as a critical factor in EFFE intervention. This single case study contributes a rich understanding of the meaning and experience of successful informal family intervention and resolution in a specific family context and EFFE situation. Victim self-determination, perpetrator support and accountability, protecting family relationships, and family-driven decision making were interwoven case themes. Meaningful intervention involved a family systems approach in which primarily victim-defined goals and then family-supported resolution were attained through a complementary process of restorative justice.

Informal intervention, and the themes and features identified in this case, should not be viewed as a “one size fits all” given the heterogeneity of family systems and EFFE contexts. EFFE may involve victims who may not have the same cognitive capacity and physical wellness and in families that may not have the same values, cohesion, and family functioning context. Not all victims have adult children or extended family available, willing, or able to get involved. Not all families may want the responsibility of determining intervention processes and outcomes. Not all families may be able to articulate and agree on the meaning of just outcomes or success. We note that in Family K, the victim, perpetrator, and CFM were all female, and suspect female gender may influence intervention roles and involvement. As Fraga Dominguez et al. (2019) found, among concerned persons, adult daughters were the most common callers seeking help from elder abuse victim service helplines. Female gender may thus be linked with prosocial motivation. However, gender alignment between perpetrator, victim, and key stakeholders may not occur in every case. Future studies may show that EFFE situations that involve multiple perpetrators and/or victims, or a family with a history of conflicts, unhealthy power and control dynamics, or differences in gender may benefit from a broader range of formal and informal interventions.

The prevalence and potential consequences of EFFE underscore the need for effective interventions. The lessons learned from Family K’s experience reinforced the importance of being able to construct interventions that best fit the realities of the individuals and contexts involved. That is, the meaning of EFFE and the degree of success in intervention cannot be separated from the specific family and EFFE context.

Not all cases may fit well into either restorative justice or family systems models. Tailoring interventions would be especially important in cases where cultural meanings of abuse, exploitation, filial responsibility, resource-sharing, and accessible systems and resources may differ vastly from normative assumptions in mainstream definitions and policy contexts. Evidence of successful interventions meaningful to victims, perpetrators, and CFMs is needed to inform and guide future EFFE interventions.

The authors thank Dr. Barbara Bowers, editor, and the two anonymous reviewers for their constructive feedback.

This study is supported by the National Institute of Food and Agriculture (NIFA), United States Department of Agriculture (USDA) Experiment Station, Project 1013288.

IRB protocol/human participants’ approval number: 1610SS96987.

None declared.

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• family relationship
• accountability
• financial abuse
• perpetrator of child and adult abuse

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Smith Family Financial Plan (A)

By: Brian Lane, Johnstone Nathalie

The Smith family is in a cash crunch. Even with a combined gross family income of $80,000 per year, monthly cash outflows are still greater than inflows. Joel and Amber Smith are aware of these cash…

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• Publication Date: Jul 17, 2013
• Discipline: Finance
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The Smith family is in a cash crunch. Even with a combined gross family income of $80,000 per year, monthly cash outflows are still greater than inflows. Joel and Amber Smith are aware of these cash flow problems, but do not understand where their money goes and struggle to set financial goals. They have contacted a financial advisory firm to help them develop a plan and set realistic future goals. The Smiths face financial problems common to young families such as saving for their retirement and children's education, paying down credit card debt, paying down (and possibly refinancing) their mortgage, buying a new vehicle, and providing adequate healthcare insurance. Students are tasked with playing the role of the family's financial advisor and helping them bring their finances under control. The case is built in two parts, (A) and (B). These can be used in separate 75- to 90-minute classes, with Smith Family Financial Plan (A) covered at the midpoint of the course and Smith Family Financial Plan (B), product 9B13N006, covered near the end. Alternatively, it can be used as a two-part major assignment, with Part (A) as the first major submission and Part (B) as the second.

Authors Brian Lane and Nathalie Johnstone are affiliated with University of Saskatchewan.

Learning Objectives

This case series engages students in evaluating financial-planning alternatives and considering the effects of their recommendations on client goals. It places students in the role of a financial advisor and introduces them to the personal financial-planning process, with emphasis on personal financial statements and liquidity issues, insurance, investments, taxation, and retirement planning. This case was designed to complement the curriculum of an upper year undergraduate personal finance class and simulates the professional financial-planning environment of meeting with clients and developing financial plans. This case asks students to:Assess short-term and long-term financial goals while considering the time value of money.Create personal financial statements.Identify liquidity issues (banking, money management and personal credit).Assist clients in personal tax planning.Discuss the most effective way to finance large purchases to best meet client goals (personal loans and houses).

Jul 17, 2013 (Revised: May 24, 2013)

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by Maria Pippidis, May 2020

A drop in income is a scary and unsettling situation for both adults and children. It is important to talk through the situation with family members as quickly as possible–even though it may be hard to do. Adults can quickly feel overwhelmed by the added stress and sense of reduced financial security. It is important to remember that children sense the tension in the family and may feel less secure, but don't know what to do about it.

Parents may be less engaged with their children and more likely to become upset or angry over little things, due to higher levels of stress. Keeping the lines of communication open during times like these can help everyone feel more connected. Family communication can also help older children and parents find ways to manage the family finances. Even young children can be taught about wants and needs and how family financial decisions are made.

You may wonder how you will afford to buy food and pay your rent or mortgage... -

Some tips for family money meetings:  

• The most important thing to remember is to "leave the blame at the door."
• Recognize and respect each other's different attitudes toward money and approach discussions in an organized way. Work to find common ground so you can all work in the same direction.
• Make sure it is a good time for each of you to talk. If one of you has had a bad day or received difficult news, you may want to reschedule the discussion.
• Set ground rules for the discussion. Make sure you both have an opportunity to be heard and listen to what your partner is saying. Avoid accusations and blame.
• Set and prioritize your goals together and stick to the plan unless something significant occurs and you need to alter it.
• Set aside time each month for a money meeting. Regular meetings will become easier to do and keep you on track.

You may need to meet more frequently during times of financial stress. Try to set goals that are obtainable and leave everyone something that will keep their spirits up. When planning about cutting back on spending, find alternatives for when you have to say, "We can't do that anymore." For example, if you can't afford to go to the movie theater or need to cancel some online viewing subscriptions, then plan to go to the library and borrow them or start a movie-lending group with friends. Finding free and inexpensive alternatives can keep family members from feeling the brunt of financial hardship.

Some financial decisions are harder to make. For example, you may wonder how you will afford to buy food and pay your rent or mortgage. What will happen if you can't pay your credit card bills right now?

You need to take action right away if you are asking these questions. Find out about any available financial supports. You can help keep your family healthy and happy by finding supports like energy assistance, health insurance, and other resources.

If you are worried about overwhelming debt, or unable to make mortgage payments, call your lenders to work on a payment plan before you get behind on payments. Be realistic about what you can afford. This means that you have done the math and know that you can meet your basic needs while doing the best you can to meet your creditors' financial obligations. Meeting with a reputable financial counselor might be helpful.

See www.debtadvice.org for National Foundation for Credit Counseling-accredited agencies. In Delaware, the  $tand By Me program offers financial coaching services.

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Understanding financial stress

Effects of financial stress on your health, tip 1: talk to someone, tip 2: take inventory of your finances, tip 3: make a plan—and stick to it, tip 4: create a monthly budget, tip 5: manage your overall stress, coping with financial stress.

Feeling overwhelmed by money worries? Whatever your circumstances, there are ways to get through these tough economic times, ease stress and anxiety, and regain control of your finances.

If you’re worried about money, you’re not alone. Many of us, from all over the world and from all walks of life, are having to deal with financial stress and uncertainty at this difficult time. Whether your problems stem from a loss of work, escalating debt, unexpected expenses, or a combination of factors, financial worry is one of the most common stressors in modern life. Even before the global coronavirus pandemic and resulting economic fallout, an American Psychological Association (APA) study found that 72% of Americans feel stressed about money at least some of the time. The recent economic difficulties mean that even more of us are now facing financial struggles and hardship.

Like any source of overwhelming stress, financial problems can take a huge toll on your mental and physical health, your relationships, and your overall quality of life. Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety. You may resort to unhealthy coping mechanisms, such as drinking, abusing drugs, or gambling to try to escape your worries. In the worst circumstances, financial stress can even prompt suicidal thoughts or actions. But no matter how hopeless your situation seems, there is help available. By tackling your money problems head on, you can find a way through the financial quagmire, ease your stress levels, and regain control of your finances—and your life.

While we all know deep down there are many more important things in life than money, when you’re struggling financially fear and stress can take over your world. It can damage your self-esteem, make you feel flawed, and fill you with a sense of despair. When financial stress becomes overwhelming, your mind, body, and social life can pay a heavy price.

[Read: Stress Symptoms, Signs, and Causes]

Financial stress can lead to:

Insomnia or other sleep difficulties. Nothing will keep you tossing and turning at night more than worrying about unpaid bills or a loss of income.

Weight gain (or loss). Stress can disrupt your appetite, causing you to anxiously overeat or skip meals to save money.

Depression. Living under the cloud of money problems can leave anyone feeling down, hopeless, and struggling to concentrate or make decisions. According to a study at the University of Nottingham in the UK, people who struggle with debt are more than twice as likely to suffer from depression .

Anxiety. Money can be a safety net; without it, you may feel vulnerable and anxious. And all the worrying about unpaid bills or loss of income can trigger anxiety symptoms such as a pounding heartbeat, sweating, shaking, or even panic attacks.

Relationship difficulties. Money is often cited as the most common issue couples argue about. Left unchecked, financial stress can make you angry and irritable, cause a loss of interest in sex, and wear away at the foundations of even the strongest relationships .

Social withdrawal. Financial worries can clip your wings and cause you to withdraw from friends, curtail your social life, and retreat into your shell—which will only make your stress worse.

Physical ailments such as headaches, gastrointestinal problems, diabetes, high blood pressure , and heart disease. In countries without free healthcare, money worries may also cause you to delay or skip seeing a doctor for fear of incurring additional expenses.

Unhealthy coping methods , such as drinking too much , abusing prescription or illegal drugs, gambling, or overeating. Money worries can even lead to self-harm or thoughts of suicide.

If you are feeling suicidal…

Your money problems may seem overwhelming and permanent right now. But with time, things will get better and your outlook will change, especially if you get help. There are many people who want to support you during this difficult time, so please reach out!

Read Are You Feeling Suicidal? , call 1-800-273-TALK in the U.S., or find a helpline in your country at IASP or Suicide.org .

The vicious cycle of poor financial health and poor mental health

A number of studies have demonstrated a cyclical link between financial worries and mental health problems such as depression, anxiety, and substance abuse.

Financial problems adversely impact your mental health. The stress of debt or other financial issues leaves you feeling depressed or anxious.

The decline in your mental health makes it harder to manage money. You may find it harder to concentrate or lack the energy to tackle a mounting pile of bills. Or you may lose income by taking time off work due to anxiety or depression.

These difficulties managing money lead to more financial problems and worsening mental health problems, and so on. You become trapped in a downward spiral of increasing money problems and declining mental health.

No matter how bleak your situation may seem at the moment, there is a way out. These strategies can help you to break the cycle, ease the stress of money problems, and find stability again.

When you’re facing money problems, there’s often a strong temptation to bottle everything up and try to go it alone. Many of us even consider money a taboo subject, one not to be discussed with others. You may feel awkward about disclosing the amount you earn or spend, feel shame about any financial mistakes you’ve made, or embarrassed about not being able to provide for your family. But bottling things up will only make your financial stress worse. In the current economy, where many people are struggling through no fault of their own, you’ll likely find others are far more understanding of your problems.

[Read: Social Support for Stress Relief]

Not only is talking face-to-face with a trusted friend or loved one a proven means of stress relief, but speaking openly about your financial problems can also help you put things in perspective. Keeping money worries to yourself only amplifies them until they seem insurmountable. The simple act of expressing your problems to someone you trust can make them seem far less intimidating.

• The person you talk to doesn’t have to be able to fix your problems or offer financial help.
• To ease your burden, they just need to be willing to talk things out without judging or criticizing.
• Be honest about what you’re going through and the emotions you’re experiencing.
• Talking over your worries can help you make sense of what you’re facing and your friend or loved one may even be able to come up with solutions that you hadn’t thought of alone.

Getting professional advice

Depending on where you live, there are a number of organizations that offer free counseling on dealing with financial problems, whether it’s managing debt, creating and sticking to a budget, finding work, communicating with creditors, or claiming benefits or financial assistance. (See the “Get more help” section below for links).

Whether or not you have a friend or loved one to talk to for emotional support, getting practical advice from an expert is always a good idea. Reaching out is not a sign of weakness and it doesn’t mean that you’ve somehow failed as a provider, parent, or spouse. It just means that you’re wise enough to recognize your financial situation is causing you stress and needs addressing.

Speak to a Licensed Therapist

BetterHelp is an online therapy service that matches you to licensed, accredited therapists who can help with depression, anxiety, relationships, and more. Take the assessment and get matched with a therapist in as little as 48 hours.

Opening up to your family

Financial problems tend to impact the whole family and enlisting your loved ones’ support can be crucial in turning things around. Even if you take pride in being self-sufficient, keep your family up to date on your financial situation and how they can help you save money.

Let them express their concerns. Your loved ones are probably worried—about both you and the financial stability of your family unit. Listen to their concerns and allow them to offer suggestions on how to resolve the financial problems you’re facing.

Make time for (inexpensive) family fun. Set aside regular time where you can enjoy each other’s company, let off steam, and forget about your financial worries. Walking in the park, playing games, or exercising together doesn’t have to cost money but it can help ease stress and keep the whole family positive.

If you’re struggling to make ends meet, you may think you can ease your stress by leaving bills unopened, avoiding phone calls from creditors, or ignoring bank and credit card statements. But denying the reality of your situation will only make things worse in the long run. The first step to devising a plan to solve your money problems is to detail your income, debt, and spending over the course of at least one month.

A number of websites and smartphone apps can help you keep track of your finances moving forward or you can work backwards by gathering receipts and examining bank and credit card statements. Obviously, some money difficulties are easier to solve than others, but by taking inventory of your finances you’ll have a much clearer idea of where you stand. And as daunting or painful as the process may seem, tracking your finances in detail can also help you start to regain a much-needed sense of control over your situation.

Include every source of income. In addition to any salary, include bonuses, benefits, alimony, child support, or any interest you receive.

Keep track of ALL your spending. When you’re faced with a pile of past-due bills and mounting debt, buying a coffee on the way to work may seem like an irrelevant expense. But seemingly small expenses can mount up over time, so keep track of everything. Understanding exactly how you spend your money is key to budgeting and devising a plan to address your financial problems.

List your debts. Include past-due bills, late fees, and list minimum payments due as well as any money you owe to family or friends.

Identify spending patterns and triggers. Does boredom or a stressful day at work cause you to head to the mall or start online shopping? When the kids are acting out, do you keep them quiet with expensive restaurant or takeout meals, rather than cooking at home ? Once you’re aware of your triggers you can find healthier ways of coping with them than resorting to “retail therapy”.

Look to make small changes. Spending money on things like a morning newspaper, lunchtime sandwich, or break-time cigarettes can add up to a significant monthly outlay. While it may be unreasonable to deny yourself every small pleasure, cutting down on nonessential spending and finding small ways to reduce your daily expenditure can really help to free up extra cash to pay off bills.

Eliminate impulse spending. Ever seen something online or in a shop window that you just had to buy? Impulsive buying can wreck your budget and max out your credit cards. To break the habit, try making a rule that you’ll wait a week before making any new purchase.

Go easy on yourself. As you review your debt and spending habits, remember that anyone can get into financial difficulties, especially at times like this . Don’t use this as an excuse to punish yourself for any perceived financial mistakes. Give yourself a break and focus on the aspects you can control as you look to move forward.

When your financial problems go beyond money

Sometimes, the causes for your financial difficulties may lie elsewhere. For example, money troubles can stem from problem gambling , fraud abuse , or a mental health issue, such as overspending during a bipolar manic episode .

To prevent the same financial problems recurring, it’s imperative you address both the underlying issue and the money troubles it’s created in your life.

Just as financial stress can be caused by a wide range of different money problems, so there are an equally wide range of possible solutions. The plan to address your specific problem could be to live within a tighter budget, lower the interest rate on your credit card debt, curb your online spending, seek government benefits, declare bankruptcy, or to find a new job or additional source of income.

If you’ve taken inventory of your financial situation, eliminated discretionary and impulse spending, and your outgoings still exceed your income, there are essentially three choices open to you: increase your income, lower your spending, or both. How you go about achieving any of those goals will require making a plan and following through on it.

• Identify your financial problem. Having taken inventory, you should be able to clearly identify the financial problem you’re facing. It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it’s a combination of problems. Make a separate plan for each one.
• Devise a solution. Brainstorm ideas with your family or a trusted friend, or consult a free financial counseling service. You may decide that talking to credit card companies and requesting a lower interest rate would help solve your problem. Or maybe you need to restructure your debt, eliminate your car payment, downsize your home, or talk to your boss about working overtime.
• Put your plan into action. Be specific about how you can follow through on the solutions you’ve devised. Perhaps that means cutting up credit cards, networking for a new job , registering at a local food bank, or selling things on eBay to pay off bills, for example.
• Monitor your progress. As we’ve all experienced recently, events that impact your financial health can happen quickly, so it’s important to regularly review your plan. Are some aspects working better than others? Do changes in interest rates, your monthly expenses, or your hourly wage, for example, mean you should revise your plan?
• Don’t get derailed by setbacks. We’re all human and no matter how tight your plan, you may stray from your goal or something unexpected could happen to derail you. Don’t beat yourself up, but get back on track as soon as possible.

The more detailed you can make your plan, the less powerless you’ll feel over your financial situation.

Whatever your plan to relieve your financial problems, setting and following a monthly budget can help keep you on track and regain your sense of control.

• Include everyday expenses in your budget, such as groceries and the cost of traveling to work, as well as monthly rent, mortgage, and utility bills.
• For items that you pay annually, such as car insurance or property tax, divide them by 12 so you can set aside money each month.
• If possible, try to factor in unexpected expenses, such as a medical co-pay or prescription charge if you fall sick, or the cost of home or car repairs.
• Set up automatic payments wherever possible to help ensure bills are paid on time and you avoid late payments and interest rate hikes.
• Prioritize your spending. If you’re having trouble covering your expenses each month, it can help to prioritize where your money goes first. For example, feeding and housing yourself and your family and keeping the power on are necessities. Paying your credit card isn’t—even if you’re behind on your payments and have debt collection companies harassing you.
• Keep looking for ways to save money. Most of us can find something in our budget that we can eliminate to help make ends meet. Regularly review your budget and look for ways to trim expenses.
• Enlist support from your spouse, partner, or kids. Make sure everyone in your household is pulling in the same direction and understands the financial goals you’re working towards.

Resolving financial problems tends to involve small steps that reap rewards over time. In the current economic climate, it’s unlikely your financial difficulties will disappear overnight. But that doesn’t mean you can’t take steps right away to ease your stress levels and find the energy and peace of mind to better deal with challenges in the long-term.

[Read: Stress Management]

Get moving. Even a little regular exercise can help ease stress, boost your mood and energy, and improve your self-esteem. Aim for 30 minutes on most days, broken up into short 10-minute bursts if that’s easier.

Practice a relaxation technique. Take time to relax each day and give your mind a break from the constant worrying. Meditating , breathing exercises, or other relaxation techniques are excellent ways to relieve stress and restore some balance to your life.

Don’t skimp on sleep. Feeling tired will only increase your stress and negative thought patterns. Finding ways to improve your sleep during this difficult time will help both your mind and body.

Boost your self-esteem. Rightly or wrongly, experiencing financial problems can cause you to feel like a failure and impact your self-esteem. But there are plenty of other, more rewarding ways to improve your sense of self-worth. Even when you’re struggling yourself, helping others by volunteering can increase your confidence and ease stress, anger, and anxiety—not to mention aid a worthy cause. Or you could spend time in nature, learn a new skill, or enjoy the company of people who appreciate you for who you are, rather than for your bank balance.

Eat healthy food. A healthy diet rich in fruit, vegetables, and omega-3s can help support your mood and improve your energy and outlook. And you don’t have to spend a fortune; there are ways to eat well on a budget .

Be grateful for the good things in your life. When you’re plagued by money worries and financial uncertainty , it’s easy to focus all your attention on the negatives. While you don’t have to ignore reality and pretend everything’s fine, you can take a moment to appreciate a close relationship, the beauty of a sunset, or the love of a pet, for example. It can give your mind a break from the constant worrying, help boost your mood, and ease your stress.

Find financial resources

Find  U.S. Government Services and Information  including  How to Get Out of Debt ,  Unemployment Help , and  Getting Help with Living Expenses . Or call 1-844-872-4681. (USA gov)

Get help with debt and housing problems from  Citizens Advice , contact a free debt service at  National Debtline  or  Stepchange , or seek free financial advice from the government’s  Money Advice Service .

Find  Government Services , get free  Financial Counselling  or call the  National Debt Helpline  at 1800 007 007.

Find government services and information for  Managing Debt  and  Benefits .

More Information

• Managing Job Loss and Financial Stress - Helping yourself and your family cope with stress and financial worries following job loss. (University of Hawaii)
• Managing Debt - Steps you can take to deal with debt. (Federal Trade Commission)
• Managing money and budgeting - Tips for creating a family budget. (raisingchildren.net.au)
• Make a Budget - Simple worksheet to help you create a budget. (Federal Trade Commission)
• Money Stress Weighing on Americans’ Health - Details of the 2015 Stress in America: Paying with Our Health survey from the American Psychological Association. (APA)
• Trauma- and Stressor-Related Disorders. (2013). In Diagnostic and Statistical Manual of Mental Disorders . American Psychiatric Association. Link
• Inc, Gallup. “The U.S. Healthcare Cost Crisis.” Gallup.com. Accessed November 16, 2021. Link
• Anderson, Norman B, Cynthia D Belar, Steven J Breckler, Katherine C Nordal, David W Ballard, Lynn F Bufka, Luana Bossolo, Sophie Bethune, Angel Brownawell, and Katelynn Wiggins. Stress in America: Paying with our Health. “AMERICAN PSYCHOLOGICAL ASSOCIATION,” n.d., 23. Link
• Ramsey Solutions. “Money, Marriage, and Communication.” Accessed November 16, 2021. Link
• “At What Costs? Student Loan Debt, Debt Stress, and Racially/Ethnically Diverse College Students’ Perceived Health. – PsycNET.” Accessed November 16, 2021. Link
• Richardson, Thomas, Peter Elliott, and Ronald Roberts. “The Relationship between Personal Unsecured Debt and Mental and Physical Health: A Systematic Review and Meta-Analysis.” Clinical Psychology Review 33, no. 8 (December 1, 2013): 1148–62. Link
• Warth, Jacqueline, Marie-Therese Puth, Judith Tillmann, Johannes Porz, Ulrike Zier, Klaus Weckbecker, and Eva Münster. “Over-Indebtedness and Its Association with Sleep and Sleep Medication Use.” BMC Public Health 19, no. 1 (July 17, 2019): 957. Link
• Saleh, Dalia, Nathalie Camart, Fouad Sbeira, and Lucia Romo. “Can We Learn to Manage Stress? A Randomized Controlled Trial Carried out on University Students.” PLOS ONE 13, no. 9 (September 5, 2018): e0200997. Link
• “Stress, Social Support, and the Buffering Hypothesis. – PsycNET.” Accessed November 15, 2021. Link
• Salmon, P. “Effects of Physical Exercise on Anxiety, Depression, and Sensitivity to Stress: A Unifying Theory.” Clinical Psychology Review 21, no. 1 (February 2001): 33–61. Link
• Toussaint, Loren, Quang Anh Nguyen, Claire Roettger, Kiara Dixon, Martin Offenbächer, Niko Kohls, Jameson Hirsch, and Fuschia Sirois. “Effectiveness of Progressive Muscle Relaxation, Deep Breathing, and Guided Imagery in Promoting Psychological and Physiological States of Relaxation.” Evidence-Based Complementary and Alternative Medicine 2021 (July 3, 2021): e5924040. Link

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How to Deal with Family Financial Problems? 10 Life-Saving Tips To Crush Your Financial Struggles

Mark Garcia

 / 

Table of Contents

Cause of financial problem in family, effects of financial stress on families, effects of financial stress on personal health, how to deal with family financial problems, family financial struggles facts, building family financial resilience, frequently asked questions (faqs).

Worried about how to deal with family financial problems? We’ve got your back! Juggling family expenses can feel overwhelming, but fret not.

In this guide, we’ve rounded up 10 life-saving tips to help you conquer your financial hurdles with ease.

Get ready to take charge of your family’s financial well-being and pave the way for a stress-free and stable future.

The causes of financial problems in families can stem from various factors, and understanding these issues is crucial to finding effective solutions. 

In order for you undersrand how to deal with family financial problems you need to be aware of the causes of family financial struggles.

Some common cause of financial problem in family include:

1. Excessive Debt

Managing high levels of debt, including credit card balances and loans, can make it challenging for families to save or cover necessary expenses. High-interest rates on loans can make it difficult to pay off debts quickly, prolonging financial strain.

2. Job Loss

Sudden unemployment can lead to financial stress and affect family dynamics. The loss of a steady income source often means cutting back on expenses and dipping into savings, causing further strain and uncertainty.

3. Healthcare Expenses

Rising medical costs, coupled with inadequate insurance coverage, can create significant financial burdens for families. Unforeseen medical emergencies or ongoing healthcare needs can quickly deplete savings and strain the family budget.

4. Insufficient Income

Despite working tirelessly, some families may struggle due to low wages or unstable employment.

Balancing daily expenses with limited income can lead to tough choices and potential financial hardships, making it challenging for you find an anwer to how to deal with family financial problems. 

By addressing the root cause of financial problem in family and implementing effective strategies, you can take a significant step toward building family financial resilience. 

Let us explore the impacts of financial distress as this can help you understand how to deal with family financial problems. 

Read More: How To Be Smart With Money: 14 Tips On Financial Health

When economic pressure builds, it can take a toll on the harmony and closeness within the family. Financial stress often leads to increased disagreements and challenges among family members.

The following are some of the effects of financial stress on families: 

1. Parental Well-being

As parents face the strains of financial hardship, it can influence how they interact with their children. The added stress might make it harder to provide the same level of emotional support and consistent guidance that they strive for.

2. Effects on Children and Adolescents

Children and teenagers can feel the effects of financial stress at home, experiencing emotions like sadness and frustration. This can sometimes lead to worries about their well-being and affect their focus and performance in school.

Read More: Children’s Mental Health – Signs of Mental Illness In Children

3. Reshaping Family Dynamics

When families face financial difficulties, it often requires adjustments in roles and responsibilities. Everyone might need to pitch in more to make things work, and sometimes, this can bring about changes in how the family does things together.

Read More: What Are Family Dynamics? 5 Causes, Roles And Its Importance

The effects of financial stress on families extend just the family dynamics. It often results in deteriorating mental health among the family members. 

Let us look at how financial stress affects the personal health of family members and why is it necessary to learn how to deal with family financial problems.  

While we all understand that there are more important things in life than money, the fear and stress associated with financial struggles can overshadow everything else. 

It can harm your self-esteem, leave you feeling flawed, and envelop you in a sense of hopelessness.

Financial stress can lead to:

1. Insomnia or Sleep Difficulties

Few things are as effective at keeping you up at night as worrying about unpaid bills or a sudden loss of income.

Read More: How To Sleep Better When You Have Insomnia

2. Weight Fluctuations

Stress can disrupt your eating patterns, causing you to overeat out of anxiety or skip meals to save money.

3. Depression

Living under the cloud of financial problems can result in feelings of sadness, hopelessness, and difficulty concentrating. 

Research even indicates that individuals struggling with debt are more than twice as likely to experience depression.

Read More: 6 Major Causes Of Depression And Frequently Asked Questions

Money often serves as a safety net, and its absence can leave you feeling vulnerable and anxious. Constant worrying about unpaid bills or a reduction in income can trigger anxiety symptoms like a racing heartbeat, sweating, trembling, or even panic attacks.

Read More: What Is Stress? 13 Signs, Causes, And Mental Health Affects

5. Relationship Strain

Money is a common source of conflict in relationships. Unaddressed financial stress can lead to anger, irritability, diminished interest in intimacy, and erosion of even the most robust relationships.

6. Social Withdrawal

Financial concerns may limit your social interactions, causing you to pull back from friends, reduce your social activities, and withdraw into isolation, further exacerbating your stress.

Now that you have an understanding of the causes and effects of financial stress on families as well as the impact it has on your own personal health, let us now look at how to deal with family financial problems.

Recognizing the signs and taking proactive steps can help regain control over and help you on how to deal with family financial problems. 

Here are ten effective strategies to tackle financial problems and alleviate the associated stress:

1. Identify the Problem

Assess whether certain indicators, such as multiple credit cards, difficulty making payments, or a significant portion of your income going towards debt, signal underlying financial issues.

2. Make a Budget

Establish a comprehensive budget by recording all sources of income and expenses, considering regular and occasional costs, and ensuring debt repayment is factored in.

3. Lower Your Expenses

Review and curtail unnecessary expenses, explore cost-effective alternatives, and consider renegotiating service packages to optimize spending.

4. Pay in Cash

Opt for cash payments to better track and control your expenditure, allocating designated amounts for specific purposes to stay within budget limits.

5. Avoid Accumulating Debt

Combat impulsive spending by leaving credit cards at home and living within your means, prioritizing debt repayment to prevent further financial strain.

6. Consider Secondhand Option

Explore alternatives to buying new, such as purchasing used items, borrowing or renting, and embracing do-it-yourself solutions to reduce costs.

7. Consult a Financial Advisor

Seek guidance from a financial advisor to assess your banking packages, fees, insurance coverage, and potential debt consolidation options for more effective financial management.

8. Boost Your Income

Explore avenues for supplemental income, like overtime work, freelancing, selling unused items, or taking on a second job to improve your financial stability.

9. Set Realistic Goals

Establish attainable financial goals to manage expectations and avoid unnecessary pressure, allowing room for occasional treats within your budget.

10. Improve Your Credit Score

Maintain a healthy credit score by adhering to timely bill payments, managing credit card balances sensibly, and avoiding excessive credit applications to enhance your financial credibility for future endeavors.

By implementing these practical measures and fostering responsible financial habits, you can take meaningful steps toward achieving greater financial stability.

Understanding the challenges families encounter with their finances is crucial in devising effective solutions. 

Let’s delve into some family financial struggle facts that shed light on the struggles many families face in managing their financial situations.

1. Income Disparities

Recent data shows that over half of lower-income parents (around 52%) struggle to afford things like food and a place to live. In comparison, this is true for only 17% of middle-income parents and 5% of higher-income parents.

2. Healthcare Burdens

According to studies , about 37% of lower-income parents had trouble paying for medical bills, while only 21% of middle-income parents and 6% of higher-income parents faced similar challenges.

Interestingly, there is a noticeable difference between mothers and fathers. Around 30% of mothers, compared to 19% of fathers, have experienced difficulties affording food. 

3. Childcare Challenges

Data shows that 28% of mothers, as opposed to 20% of fathers, struggled to pay rent or a mortgage. In cases of childcare, approximately 24% of mothers had difficulties affording it, compared to 16% of fathers.

Besides, working parents, especially those with lower incomes, worry about losing their jobs or their pay if they need to take time off for childcare emergencies. About 45% of employed parents with lower incomes are concerned about losing pay, while 22% are worried about losing their jobs. 

While it’s clear that many families are grappling with these financial challenges, it’s essential to recognize that you are not alone in this struggle.

By implementing effective strategies and seeking support, it’s possible to navigate through these difficulties and discover practical solutions.  

Managing your family’s finances and steering clear of monetary stress involves recognizing the root causes and the subsequent impacts on your household’s well-being. 

By taking note of the warning signs, implementing the practical strategies outlined, and adopting responsible financial practices, families can confront these trials and uncover workable solutions.

It’s essential to understand that you’re not the only family navigating these challenges. Many others face similar struggles and have successfully overcome them.

By uniting efforts and committing to a shared goal of financial stability, families can gradually build their financial resilience. 

It may take time, patience, and concerted effort, but with persistence and the right support, you can pave the way for a more secure and prosperous future for your loved ones.

1. What are family financial struggles? 

Family financial struggles refer to challenges families face in managing their money effectively, such as difficulties in meeting expenses, coping with debts, and handling unexpected emergencies.

2. What are the cause of financial problem in family? 

Financial problems in families can be caused by excessive debt, job loss, healthcare expenses, and insufficient income, leading to significant financial strain and instability.

3. What are the effects of financial stress on families? 

Financial stress can strain relationships, reshape family dynamics, and impact the well-being of both parents and children, leading to emotional and psychological challenges.

4. How to deal with family financial problems? 

Managing family financial problems involves creating a budget, lowering expenses, avoiding new debts, considering secondhand options, consulting a financial advisor, boosting income, setting realistic goals, and improving your credit score.

5. What are the effects of family financial struggles on mental health? 

Family financial struggles can lead to issues such as insomnia, weight fluctuations, depression, anxiety, relationship strain, social withdrawal, and various physical ailments, contributing to heightened stress and decreased well-being.

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Dealing with estranged family members can be like trying to climb a mountain, but not all is doom and gloom.

In this article, we will look at the complex world around family disconnection defining its causes and its profound psychological impacts on people’s individuality. We will look at commonly felt emotions by those in such situations as grief, resentment, and guilt and try to analyze hurdles met when one opts out from the family line.

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Among the most difficult things in life can be interacting with a toxic relative. Unlike friendships which are easy to break off, family connections often feel like permanent ties that we have to maintain no matter how poisonous they might become.

Nevertheless, putting up with destructive behavior from members of our kin can take a huge emotional toll on us and lower the quality of our lives as a whole. Learning how to deal with toxic family members is that much more paramount. 

In this post, we will examine complicated dynamics within families characterized by toxicity and offer ten pieces of advice that could help you get through them gracefully and with strength. 

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6 Ways of Preventing Chronic Diseases Through Family Medical History

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As caregivers, it’s natural to desire respect from our children, but earning it goes beyond mere authority; it’s about fostering a mutual understanding and appreciation that forms the foundation of a strong parent-child bond.

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Like a glass that shatters at the slightest touch, these children can feel overwhelmed or disturbed by things that others wouldn’t care about as much. They are passionate and at times can appear to be under their skin so close to exploding.

In this article, I will go over what raising a glass child means, some signs of it happening in your family today, what could cause this sensitivity, and practical ideas for parents on how they can help their sensitive kids flourish. Thus, let us plunge towards the understanding of the world of a glass child.

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Financial Problems in Established Adulthood: Implications for Depressive Symptoms and Relationship Quality with Parents

• Original Article
• Published: 11 June 2022
• Volume 30 , pages 167–177, ( 2023 )

Cite this article

• Haowei Wang   ORCID: orcid.org/0000-0003-4409-6596 1 ,
• Kyungmin Kim 2 ,
• Jeffrey A. Burr 3 &
• Karen L. Fingerman 4  

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Using two waves of data from the Family Exchanges Study (2008 and 2013), this study examined changes in financial problems before and after the Great Recession and investigated the implications for adults’ depressive symptoms and relationship quality with parents. Participants in established adulthood ( N  = 170, age 30–46 in 2013) provided information about their financial difficulties and depressive symptoms, as well as negative relationship quality with each parent (parent–child tie; N  = 316) at baseline and 5 years later. Results showed that a growing number of participants experienced financial problems between the two waves, rising from 16 to 72% of participants. Moreover, 14% of participants indicated continuing financial problems and 33% reported decreased income over the 5 year observation period. Financial problems at baseline, continuing financial problems across the observation period, and decreased income over time were associated with participants’ increased depressive symptoms, after controlling for their baseline depressive symptoms. Results from multilevel models also revealed that adult participants had more strained relationships with their parents if they experienced more financial problems at the follow-up interview. The harmful effect of financial problems on relationship quality with parents was partially explained by adult participants’ depressive symptoms. Findings of this study highlight the important role of financial hardship for persons in established adulthood and their intergenerational ties.

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Adults are expected to be financially independent and stable when they enter established adulthood (Mehta et al., 2020 ). Financial problems emerging in this period of life may create challenges for adults to maintain their well-being and interpersonal relationships. In the aftermath of the last Great Recession (2007–2009), many young adults had difficulty finding a job and affordable housing, or achieving other markers of economic independence (Bell & Blanchflower, 2011 ; Norris, 2010 ). However, research is still limited about how the Great Recession has impacted individuals in established adulthood. This study aimed to examine financial problems of established adults before and after the Great Recession. We also investigated whether financial problems of established adults have long-term implications for their psychological distress and intergenerational ties with parents.

Established Adulthood and Financial Problems in the Time of Recession

Established adulthood, the years from 30 to 45, is considered as the most intense and demanding period of adult life (Huffman et al., 2013 ; Mehta et al., 2020 ). The intersection of work and family responsibilities during established adulthood is the central developmental challenge of these years (Mehta et al., 2020 ). Different from emerging adults (age 18 to 29; Arnett, 2000 ) who are still finishing education and exploring their career opportunities with frequent job changes, adults in their 30s and early 40s are expected to become financially independent from parents, establish their career and family, maintain their work-life stability, and move up in the organizational hierarchy (Day et al., 2008 ). However, the economic downturn associated with the Great Recession makes these developmental tasks very challenging.

The Great Recession in the United States, which started in December 2007 and ended in June 2009, resulted in the largest national reductions in employment, earnings, assets, and income since the Great Depression (until the COVID-19; Grusky et al., 2011 ; Hoynes et al., 2012 ; Jacobsen & Mather, 2011 ). According to reports, 7.5 million people lost their jobs and the unemployment rate increased from 4.4 percent to 10.1 percent in the United States (Grusky et al., 2011 ). Many Americans experienced a mix of financial hardships, including unemployment, job insecurity, increased debt, and housing instability (Morin, 2010 ). Research has mainly focused on emerging adults, because they were financially hit hardest by the recession as they were often “last hired, first fired” (Norris, 2010 ). However, one often overlooked group is adults in their established adulthood, who also faced high risks of unemployment but were expected to take financial responsibilities for themselves and their families. This paper aims to fill this gap in the literature by examining how established adults’ financial situations changed before and after the Great Recession.

Financial Problems and Psychological Health

The link between economic status and psychological health is well-established in the literature (e.g., Ferrer-i-Carbonell, 2005 ; Haushofer & Fehr, 2014 ). The stress process literature has shown that persons with financial hardships tend to confront more chronic and acute stressors compared with their wealthier counterparts (Pearlin et al., 1981 ). Financial hardship may also affect mental health through living conditions, health behaviors, and the availability of social support (Pearlin & Bierman, 2013 ). In particular, financial stressors are found to have stronger associations with mental disorders than other conventional socioeconomic indictors—such as education and occupation (Laaksonen et al., 2007 ; Linander et al., 2015 ).

To date, studies have explored sensitive periods in human development, examining poverty and financial strain during childhood (Darin-Mattsson et al., 2018 ; Domènech-Abella et al., 2021 ), emerging adulthood (Ranta et al., 2020 ), and later life (Pruchno et al., 2017 ; Wilkinson, 2016 ) for adult psychological well-being. Still, there is little research on financial problems and psychological distress in established adulthood. Moreover, individuals often incur psychological distress when they experience unemployment, asset depletion, and difficulties finding a new job due to the Great Recession (see Frasquilho et al., 2015 for a review). Experiencing financial hardship during recession is also related to the loss of a worker identity, a sense of failure, and physical health problems (Burgard & Kalousova, 2015 ; Hanna & Yuh, 2013 ; Riumallo-Herl et al., 2014 ). Yet, there remains an incomplete understanding about the psychological distress of established adults when they encounter financial problems during economic recessions.

Financial Problems and Parent–Child Relationship Quality

The family economic stress model (Conger et al., 1994 ) has shown negative consequences of family economic hardship, induced by economic recessions or work instability, on family relations (Masarik & Conger, 2017 ). The stress of family economic hardship is associated with conflicts and behavior problems among family members, which may lead to interpersonal tensions and relationship strain (Conger et al., 1990 ). The family economic stress model has been utilized to examine the development, emotional problems, and family relations of young children (Mistry et al., 2002 ; Neppl et al., 2016 ) and adolescents (Conger et al., 1994 ; White et al., 2015 ), whose parents are at risk of poverty and financial crisis. However, adult children also may encounter financial problems themselves and their financial problems may have spillover effects on relationships with their parents. Gaining financial stability and managing family relationships are at the core of established adulthood, when individuals strive to take on the duo responsibilities of work and family (Mehta et al., 2020 ). In this study, we extend the family economic stress model into the period of established adulthood and employ this theoretical framework to understand established adults’ psychological and family well-being when they face financial difficulties.

Research has shown that adult children’s life problems lead to strained relationship quality with their parents (Birditt et al., 2010 ; Greenfield & Marks, 2006 ). When adult offspring have life problems, they may perceive support provided by their parents as unwanted or inadequate, and thus, they develop poorer relationships with their parents (Wang et al., 2021 ). In particular, financial problems of adult children were found to be associated with aging mothers’ reports of tension in their relationships with adult children (Gilligan et al., 2013 ). Thus, we expect that when established adult offspring experience financial problems during the Great Recession, they may have more relationship difficulties with their parents.

Moreover, the association between financial hardship and family relationship quality may be explained by the psychological distress of the individuals experiencing financial problems. In research on marital relationships, studies have demonstrated that depressive symptoms explain a great deal of the association between economic hardship and marital quality (Vinokur et al., 1996 ). During the Great Recession, psychological distress from financial problems may spill over to relationships with parents. Thus, we expect that established adult children’s psychological distress might partially account for the association between financial problems and parent–child relationship quality.

We considered several sociodemographic factors that may confound the associations between financial problems, psychological distress, and parent–child relationships—including age, gender, racial-ethnic status, student status, marital status, parent status, employment status, and intergenerational coresidence. Adults of advanced age may be more resilient to financial problems because of their cumulative wealth and more stable jobs. Compared to men, women are more likely to experience financial problems and psychological distress (Meltzer et al., 2013 ). The quality of intergenerational ties also varies by gender across generations (Fingerman et al., 2020 ). African American adults had a higher risk of job loss during the Great Recession, but they have showed greater psychological resilience (Diette et al., 2018 ). Unmarried adults and those who are students or have not started their jobs may be less impacted by economic downturns because they may have fewer financial responsibilities with respect to supporting family members. The stress of financial difficulties could be greater for established adults who have children, given the cost of caring for children and the sense of responsibility for their own children’s well-being (Pollmann-Schult, 2014 ). Finally, there was an increased number of adult offspring living with their parents during the Great Recession, and coresidence may present unique challenges for family relationships (Fry, 2013 ).

The Current Study

Using the two waves of longitudinal data from the Family Exchanges Study (FES; 2008 and 2013), this study examined changes in financial problems before and after the Great Recession and investigated the implications for established adults’ psychological distress (i.e., depressive symptoms) and parent-adult child relationship quality. Specifically, we tested the following hypotheses:

Hypothesis 1:

Established adults would have increased financial problems, compared to their financial situations before the Great Recession.

Hypothesis 2:

Established adults who experienced increased financial problems would have more depressive symptoms after the Great Recession.

Hypothesis 3:

Established adults who experienced increased financial problems would have more negative relationship quality with their parents after the Great Recession.

Hypothesis 4:

The association between financial problems and negative parent–child relationship quality would be partially explained by established adults’ depressive symptoms.

Data and Sample

Data were drawn from two waves of the FES (Fingerman, 2008 , 2013 ). In 2008, 633 middle-aged adults (aged 40–60) who had at least one child over age 18 and one living parent completed a telephone interview before the economic recession hit U.S. families. The FES identified potential participants via listed samples from Genesys Corporation, supplemented with random digit dialing within the Philadelphia Primary Metropolitan Statistical Area. Participants provided information regarding their relationships with each parent and grown offspring in the main survey. At the end of the interviews, participants provided contact information for up to 3 adult children and 75% of those adult children participated ( n  = 592) in the offspring survey.

The second wave of data collection was fielded in 2013, during the period of economic recovery, with 455 participants of the original offspring sample (76.9%) completing the main interview. To focus on established adulthood, we only included offspring participants who were aged 30 and older in 2013 and participated in both waves of FES ( N  = 170 from 131 families). At both waves, established adult participants provided information about their financial difficulties and depressive symptoms, as well as negative relationship quality with “each” parent (parent–child tie; N  = 316).

Financial Problems

We examined financial problems along three dimensions: the presence and total number of financial problems, changes in financial problems, and changes in income. Specifically, participants were asked “In the past 12 months, have you had a serious financial problem?” (1 =  yes and 0 =  no ). Based on the answer to this question in both waves, we further created the changes of financial problems measure, including (a) never had financial problems in both 2008 and 2013 (i.e., never; reference category), (b) had no financial problems in 2008 but had financial problems in 2013 (i.e., onset), (c) had financial problems in 2008 but had no financial problems in 2013 (i.e., stopped), and (d) had financial problems in both 2008 and 2013 (i.e., continued).

In 2013, participants answered six items regarding economic hardship since 2008 derived from prior studies of the Great Recession (Chiteji & Danziger, 2011 ; Danziger et al., 2012 ). Financial problems included: (1) been laid off or lost a job , (2) had trouble finding a job or gaining employment , (3) been employed in a job that is less prestigious or pays less than previous jobs , (4) lost a lot of money (in savings, assets, retirement plans, or the stock market) , (5) cut back on travel to see family members or had fewer family members visit due to financial problems , and (6) borrowed money from family members . We created a sum score for the total number of financial problems across six items (range = 0–6).

Last, participants compared their own current household income in 2013 to their household income in 2008. The answers included (a) lower than 2008 , (b) about the same as in 2008 , and (c) higher than in 2008 (reference category).

Depressive Symptoms

Depressive symptoms were assessed with five items derived from the depression subscale of the Brief Symptom Inventory (BSI; Derogatis & Melisarator, 1983 ). Participants indicated how distressed or bothered they were during the past week in the following items: feeling lonely, feeling blue, feeling no interest in things, feeling hopeless about the future, and feeling worthless. Each item was rated from 1 ( not at all ) to 5 ( extremely ). We calculated a mean score across five items, with higher scores indicating more depressive symptoms ( α  = .84 at baseline and α  = .85 at follow-up).

Parent–Child Relationship Quality

Because we expected that negative relationship quality with parents would be more sensitive to adult children’s financial problems—rather than positive relationship quality (Birditt et al., 2010 ; Gilligan et al., 2013 ), we focused on the negative aspect of relationship quality. Negative relationship quality was measured by two items: “How much does he/she criticize you” and “How much does he/she make demands on you” (Birditt et al., 2010 ; Umberson, 1992 ). Participants rated each item on a 5-point scale from 1 ( not at all ) to 5 ( a great deal ). The two items were averaged to create a score for negative relationship quality ( ρ  = .43 for mother–child relationship quality and ρ  = .37 for father-child relationship quality at baseline ; ρ  = .55 for mother–child relationship quality and ρ  = .59 for father-child relationship quality at follow-up; Eisinga et al., 2013 ).

Participants provided information on their own characteristics: age (in years), gender (1 =  female and 0 =  male ), student status (1 =  student and 0 =  not a student ), racial/ethnic minority status (1 =  racial/ethnic minority and 0 =  non-Hispanic white ), marital status (1 =  married or remarried and 0 =  unmarried ), parent status (1 =  had at least one child and 0 =  had no children ), and employment status (1 =  working for pay and 0 =  not working ). Participants also provided information on each of their parents—mother and father, separately, including gender (1 =  female and 0 =  male ) and coresidence status (1 =  yes and 0 =  no ).

Analytic Strategy

We first examined descriptive statistics of participants’ sociodemographic characteristics and financial problems to identify the degree to which established adults experienced financial problems before and after the Great Recession (Hypothesis 1 ).

Next, we estimated ordinary least square linear regression models with lagged-dependent variables (i.e., depressive symptoms at baseline) to examine associations between financial problems and depressive symptoms at follow-up (Hypothesis 2 ). Models also controlled for sociodemographic characteristics (i.e., age, gender, student status, racial/ethnic minority status, marital status, parent status, and employment status) measured at baseline.

Finally, regarding negative relationship quality with parents, we estimated 2-level linear regression models to account for the nested structure of the data (i.e., adult participants [level 2] reported relationship quality with each parent [level 1]). We employed a hierarchical model approach to examine associations between established adults’ financial problems, depressive symptoms, and negative relationship quality with parents. In the first step, we entered established adults’ financial problems as key predictors for negative parent–child relationship quality at follow-up, controlling for parent–child relationship quality measured at baseline (Hypothesis 3 ). In the second step, we added established adults’ depressive symptoms to previous models to examine the mediation effect of depressive symptoms in the association between financial problems and negative parent–child relationship quality (Hypothesis 4 ). Multilevel models also included characteristics of established adults (i.e., age, gender, student status, racial/ethnic minority status, marital status, parent status, and employment status) and their parents (i.e., gender and coresidence status). Fewer than 5% cases had missingness with our analytical variables and we used mean imputation for the missing values.

Descriptive statistics presented in Table 1 showed that a growing number of established adult participants experienced financial problems during the Great Recession, rising from 16% in 2008 to 72% in 2013. On average, participants had 1.99 financial problems (range 0–6) in 2013. Moreover, 14% of participants indicated experiencing financial problems in both 2008 and 2013, and 58% of participants reported the onset of financial problems since the Great Recession. While almost half of participants indicated higher income, 16% reported that their income has stayed the same and 33% reported that income was lower, compared to 2008.

Over the 5 year span, participants further established their adult lives. A greater proportion of them finished schooling (12% in 2008 and 8% in 2013 were students), became married (35% in 2008 and 54% in 2013 were married or partnered), became parents (45% in 2008 and 64% in 2013 had a child), and started to live independently (24% in 2008 and 14% in 2013 coresided with any parent). However, their depressive symptoms also slightly increased over time (1.56 in 2008 and 1.70 in 2013; paired t  = 2.27, p  = .025). The relationship quality with parents remained stable, with negative relationship quality changing from 2.00 in 2008 to 2.01 in 2013 (paired t  = 0.19, p  = .85).

Linear regression results for the associations between financial problems and depressive symptoms among established adults are presented in Table 2 . The results showed that the presence of financial problems at baseline ( B  = 0.53, p  = .002 in Model 1) and the total number of financial problems at follow-up ( B  = 0.07, p  = .040 in Model 1) were independently associated with participants’ increased depressive symptoms at follow-up, after controlling for their baseline depression status. Compared to those who never had financial problems, established adults with continuing financial problems across the observation period had more depressive symptoms at follow-up ( B  = 0.71, p  = 0.001 in Model 2). Moreover, established adults with decreased income over time had more depressive symptoms at follow-up ( B  = 0.55, p  < 0.001 in Model 3), compared to those who reported increased income since 2008.

Table 3 presents the results from multilevel models for the associations between financial problems, depressive symptoms, and negative parent–child relationship quality. First, established adult children’s total financial problems at the follow-up interview ( B  = 0.06, p  = .021 in Model 1a) were associated with increased negative relationship quality with parents. In addition, established adult children had more negative relationship quality with their parents if they continued to experience financial problems ( B  = 0.38, p  = .035 in Model 2a) and lower income since 2008 ( B  = 0.30, p  = .046 in Model 3a). After adding depressive symptoms at the follow-up interview to the models, the coefficients for financial problem indicators became smaller (i.e., Model 3b) or nonsignificant (i.e., Model 2b). Thus, these results suggested that depressive symptoms of established adults partially mediated the associations between financial problems and negative parent–child relationship quality. Further, using the information from linear regression models (Table 2 ) and multilevel models (Table 3 ), we conducted a two-step multilevel mediation analysis (Krull & MacKinnon, 2001 ; Preacher et al., 2010 ). Results confirmed that continued financial problems (Sobel ẟ  = 1.57, p  = .058) had some, albeit marginally significant, indirect effects on negative parent–child relationship quality through depressive symptoms.

Post-hoc Analysis

We also examined how each of the financial problems experienced by established adult participants in the follow-up wave was associated with their depressive symptoms and relationship quality with parents, considering different types of financial problems (not shown in table). When each financial problem was entered in the regression models separately, having a less prestigious job, having trouble finding a job, and lost a lot of money were associated with increased depressive symptoms—whereas reports of a job loss, cut backs in travel, and borrowing money were not associated with increased depressive symptoms. In addition, having trouble finding a job was only related to more strained relationships with parents for established adults.

Established adulthood is a developmental period with many challenges from a changing world (Mehta et al., 2020 ). This study examined how financial problems before and after the Great Recession were associated with psychological distress (i.e., depressive symptoms) and intergenerational relationship quality for adults in this unique time period. Findings from this longitudinal study demonstrated that established adults experienced increased financial hardships during the Great Recession. Further, financial hardship experienced placed a heavy toll on established adults’ depressive symptoms and family relations during the Great Recession.

The Great Economic Recession impacted most peoples’ lives in one way or another. Focusing on the life stage of established adulthood, we found that those who had just gained a foothold in the adult world suffered from great financial stress during the Great Recession. Compared to their financial situation before the Great Recession, more participants reported the presence of financial problems and one-third of participants had decreased income. Unlike emerging adults who are more likely to be financially dependent on their parents (Fingerman et al., 2012 ), or middle-aged adults who may have cumulated wealth from prior years, financial hardship during the recession was particularly stressful for these adults in the established adulthood. They may have recently settled into a permanent job, but the company was bankrupted or downsized. Newly married couples may have cumulated enough savings to buy a house, but they incurred debt due to loss in the stock market. Young parents may have planned for a first child, but one spouse may have lost their job creating emotional difficulties. Dealing with such financial problems are very demanding and disruptive, making it challenging to maintain their recently established adult life.

In line with the stress process literature, our findings demonstrated that financial problems emerged as both acute and chronic stressors that had detrimental effects on adult psychological health (Burgard & Kalousova, 2015 ; Pearlin & Bierman, 2013 ). On the one hand, we found that the onset of financial problems and decreased income after the Great Recession were associated with more depressive symptoms. On the other hand, results also showed that the presence of financial difficulty at baseline had a lingering negative impact on psychological health for established adults. Studies suggested that financial problems from the economic recession at younger ages may cumulate into later life and lead to poorer health outcomes (Kahn & Pearlin, 2006 ; Wolfe et al., 2022 ). As a result, this study highlighted the importance of supporting young adults who were financially hit by the economic recession.

Consistent with the family economic stress model (Conger et al., 1994 ; Ranta et al., 2020 ), we found that financial problems experienced by established adult children were associated with poorer relationships with parents. As posited by the model, family financial hardship can have spillover effects for other family members’ psychological distress and family relations, especially for children and adolescents. In this study, we extended the model by examining recession-induced financial hardship faced by adult children in the period of established adulthood. When one member has a financial crisis, other family members may step up and provide support; when the economic recession occurred, it is likely that many, if not all, family members had to deal with the financial problems to some extent. Thus, the financial hardship from economic recession was not just a country’s economic affair, but also a family affair (Fingerman et al., 2018 ).

Moreover, we found some evidence that established adults’ depressive symptoms partially explained the association between financial problems and worsened parent–child relationship quality in the time of the economic downturn. As established adult children developed more depressive symptoms with financial problems from the Great Recession, their elevated psychological distress in turn led to poorer relationships with parents. The estimated mediation effects of depressive symptoms were not strong in this study. This may be the case because we controlled for baseline status to examine changes in parent–child relationship quality due to financial problems and depressive symptoms. In addition, Gilligan et al., ( 2013 ) also found nonsignificant mediation effects of middle-aged children’s psychological problems for the association between children’s financial strain and mother–child relationship quality. One explanation for the discrepancy could be that aging parents tended to attribute children’s financial problems as children’s personal failures (Gilligan et al., 2013 ). As a result, children’s financial problems had a strong and direct impact on parent–child relationship quality when there was no economic downturn. However, in the context of the global economic recession, parents may have anticipated financial hardship for everyone, including their children, and thus did not associate these hardships as their children’s responsibility. Therefore, children’s financial problems may have an impact on family relations through other mechanisms, such as their psychological distress.

Unfortunately, the Great Recession is no longer the worst economic downturn in recent memory. In 2020, when the COVID-19 pandemic started, the global economy suffered a significant downturn that affected more vulnerable populations more than others. During the first outbreak of COVID-19 in the U.S, the number of unemployed Americans rose from 6.2 million (unemployment rate = 3.8%) in February to 20.5 million (unemployment rate = 13.0%) in May. By mid-April 2020, 40% of Americans had experienced one or more COVID-19-related financial stressors (Ettman et al., 2021 ). Millions of young adults lost their jobs or had financial problems due to the unparalleled, rapid economic contraction (Achdut & Refaeli, 2020 ). Findings of this study may help researchers understand the consequences of COVID-19 recession on adults in their established adulthood.

Limitations and Directions for Future Research

Several limitations to this study are acknowledged. First, the measures for financial problems are based on self-reports, which may result in social desirability bias because some participants may have been reluctant to reveal financial difficulties. This would introduce a downward conservative bias regarding the extent of the problems actually experienced. In addition, financial difficulties were measured by respondents’ self-reported changes between two observations at follow-up (except for the measure of any financial problem). Future studies may use longitudinal data to examine specific financial problems at each observation to measure changes in financial status prospectively. Second, there are omitted variables that may impact established adults’ response to their financial problems, such as public support programs that provided stimulus checks and new employment opportunities. In addition, the size of the sample for this study was relatively small and not nationally representative. Future studies should use nationally representative panel data to investigate the financial problems from COVID-19 recession providing additional information about the implications of a sharp financial downturn for established adults. Moreover, research is needed to examine the heterogeneity in the association between economic recession induced financial problems and psychological health in established adulthood. For example, research has demonstrated that women and members of minority racial and ethnic groups have been disproportionately affected by COVID-19-related job loss compared to men and white persons (Alon et al., 2020 ; Montenovo et al., 2020 ). Future research may examine gender and race disparities in the association between financial problems and psychological distress in the context of COVID-19 economic recession.

In conclusion, this study contributed to the scientific literature on established adulthood by examining financial problems before and during the Great Recession. The findings provided important implications for supporting established adults through policy and therapeutic interventions as they are navigating the “rush hour of life” (Knecht & Freund, 2016 ). With the recent economic recession due to the COVID-19 pandemic, we call for more research that contributes to an understanding and support for established adults and their families.

Data Availability

This study uses data from the Family Exchange Study , which is publicly available at Inter-university Consortium for Political and Social Research ( https://www.icpsr.umich.edu/web/NACDA/studies/36360 ; https://www.icpsr.umich.edu/web/NACDA/studies/37317 ).

Code Availability

Available upon request.

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This study was supported by grants from the National Institute on Aging (NIA), Grant No. R01AG027769, Family Exchanges Study II (Karen L. Fingerman, Principal investigator) and Grant No. R03AG048879, Generational Family Patterns and Well-Being (Kyungmin Kim, Principal investigator). The MacArthur Network on an Aging Society (John W. Rowe, Network director) provided funds. This research also was supported by grant, 5 R24 HD042849 awarded to the Population Research Center (PRC) at The University of Texas at Austin by the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD). Dr. Wang was supported by the National Institute on Aging (Grant No. 1R01AG060949); the Pennsylvania State University Population Research Institute, which is supported by an infrastructure grant by the Eunice Kennedy Shriver National Institute of Child Health and Human Development (Grant No. P2C-HD041025).

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Haowei Wang

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Kyungmin Kim

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Jeffrey A. Burr

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Wang, H., Kim, K., Burr, J.A. et al. Financial Problems in Established Adulthood: Implications for Depressive Symptoms and Relationship Quality with Parents. J Adult Dev 30 , 167–177 (2023). https://doi.org/10.1007/s10804-022-09409-4

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DOI : https://doi.org/10.1007/s10804-022-09409-4

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FAMILY FINANCIAL PLAN Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> FAMILY FINANCIAL PLAN

FAMILY FINANCIAL PLAN

My role is to analyze their financial position as a financial advisor to the family in terms of the inflow and outflow of the income.

This will require adopting the most feasible expenditure structure as per their income standards and their future goals with respect to the well-being and financial stability of the family. As a financial advisor to the family, it is my responsibility to identify the strengths and opportunities for the family while also addressing their issues and concerns in the long-term.

This will require assessing their insurance plans, investment options and future savings for the children so as to protect the future of the children and the family even if one or both of the parents are dead.

CRITICAL SUCCESS FACTORS:

There are several variables that can be judged as the critical success factors for the family.The most critical success factor for the family members is to reduce the expenses of the family in order to increase the savings for their retirement fund and life insurance,which will likely facilitate their children if one of them or both are dead in the future. The priority of the family is to adopt a plan that is comprehensive enough to address all these concerns and issues for them therefore, any financial plan that is introduced or prepared for the family must address all these critical success factors for both Joel and Amber.

PROBLEM STATEMENT:

The mortgage rate that the family is currently paying is quite higher than the present market rates and the health care insurance plan of both Joel and Amber is not comprehensive enough to cover the insurance of all the major diseases for the all the family members of the family.

Another issue for both the parents is to adopt the most feasible savings structure to ensure their well-being after retirement and savings for their children education.

INVESTMENT ANALYSIS:

The comprehensive analysis of the case study reveals that Joel and Amber are considering three modes of investments for their extra income and future of their family and these three modes of investment that the family is considering are savings, bonds and mutual funds. The family is also skeptical about sustaining a single segment based investment plan or a diversified investment plan.

An insight of the financial situation of the family in terms of their annual and monthly income reveals that their sources of revenues or income are limited and it is quite low, therefore investing in the exchange trade funds might prove to be counter-productive for the family as it has severe potential risks.

Although the economy of the country is stable presently however, it has the potential to tilt both ways positively or negatively.Diverting the resources of the family towards this mode of investment might prove to be counter-productive as the income of the family is quite low.

The nature of the issues that the family is facing along with their income levels signifies the importance of maintaining a diversified investment plan.It will diversify the risks for the family and reduce their dependency on a single investment plan along with its implications; positive or negative................

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The 3 Most Serious Financial Challenges Families Face In 2024, According To An Expert

A n April 2024 financial security survey by CNBC and SurveyMonkey found that 65% of United States consumers are living paycheck to paycheck; meaning, they need every bit of every paycheck to cover essential living expenses. Should they miss a paycheck, or even have it delayed, it could turn into a serious problem quickly, from a falling credit score to mounting debt to even learning what it means to have something go into foreclosure . This is the financial reality millions of individuals and families face today and it only adds to the financial challenges they already face day to day, as they attempt to budget, save, and plan for the future.

Jason Tartick, a bestselling author , finance expert, and podcast host, shared his thoughts of what financial challenges families face in 2024. As Tartick said, the only constant in the current economic conditions in America is change, and "things are changing in a massive way." Trying to maintain stability amidst this change is a challenge itself, and it comes at a time when families are dealing with higher prices for housing, food, and health care. Among the financial challenges Tartick notes, specific to families today, include affordable housing, saving for retirement (while still affording life), and a lack of savings.

Read more: What Is A Recession And What Happens During One?

1. Affordable Housing

The March 2024 Consumer Price Index summary from the Bureau of Labor Statistics reported a 3.5% inflation rate increase from the same time the year before. According to the report, the indexes for shelter and gasoline accounted for half of the rise for all indexes. For shelter, the index rose by 5.7%.

Families looking to buy a home in March 2024 will find properties selling for a median price of $420,321, per Redfin , which is 4.8% more year-over-year. For a house that costs this much, with a down payment of 20%, a family would need to take out a home loan of $336,000. At the current mortgage interest rate of 7.31% (as of April 24, 2024, per Bankrate ), that would mean a monthly mortgage payment of $2,306.

Considering the amount you should spend on your mortgage based on income is 28%, that would mean a monthly salary of ~$8,250, which equals $99,000 a year. Meanwhile, the median household income in the U.S. is around $74,580 (as of 2022, according to the Census Bureau ), or 24.7% less than what is needed for the above homebuying scenario.

2. Saving For Retirement While Still Affording Life

In addition to affordable housing, Jason Tartick also pointed out saving for retirement as being a financial challenge for families in 2024. And to this, he added that it's not just saving for retirement, but also affording life. Considering that 65% of Americans are living paycheck to paycheck, this financial goal becomes all the more difficult.

Fidelity advises people to set aside 15% of annual income for retirement. While this is a goal all Americans likely wish they could afford, the reality is that it's a difficult number to reach when you are using every dollar to pay for living expenses in the now. For families, such financial decisions can be even more difficult, as they often need to make either/or decisions.

A Pew Research Center survey in 2022 , when inflation reached 9.1%, a rate not seen since 1981, found that 25% of U.S. parents said there was a time during the year when they couldn't afford to buy food their family needed or pay their rent or mortgage. Twenty-four percent said they couldn't afford the medical/health care their family needed. While inflation in 2024 has slowed (to 3.5%), prices remain higher and saving for the future (i.e., retirement) can seem less pressing when the present needs to be taken care of first.

3. A Lack Of Savings

Speaking to us, Jason Tartick mentioned the financial stress connected to debt management, which, of course, ties into the ability to save. With Americans amassing household debt of $17.5 trillion (to end 2023), it's safe to say that many American families face difficult decisions daily, monthly, and year after year, as they try and figure out a way to stretch their dollar(s), save, and still look ahead.

Related to saving for retirement is the financial challenge of building savings for emergency use today, such as if you lose your job unexpectedly or if a family member has a medical emergency. In Bankrate's 2024 annual emergency savings report , the financial publisher found some good news: Americans were doing better with their savings. Thirty percent of respondents reported having more savings in their accounts today versus last year, while a high of 55% said they had more emergency savings than they did credit card debt. (With this said, 36% said the opposite.)

Saving is a challenge for anyone, especially these days. For singles, however, or for DINKs (dual income, no kids) , both of whom don't have children, saving for three months' worth of expenses can be a lot easier than it would be for a family of three or four or more people. For families, everything gets multiplied, from food to the size of a home to perhaps the number of cars to electricity to the amount of health coverage you need.

Read the original article on Money Digest

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Case study: Financial problems caused by overspending

These case studies are not true stories. They do not constitute actual client testimony. However, they are based on experiences observed by our Licensed Insolvency Trustees. 

These fictional case studies are meant to demonstrate the possible outcomes of a debt solution. In reality, each situation is unique. All individuals struggling with debt should consult a Ginsberg Gingras Licensed Insolvency Trustee to determine the best solution for them, and its effects.

Julia gets back on her feet thanks to her consumer proposal

Julia is a single mother looking after two children. She has a stable job and has $2,000 monthly to support her family. Her rent costs $750 per month. Expenses relating to groceries, transport, and various services account for about $1,000 every month.

The trap of overspending leads to debt

Julia separated from her partner a few years ago. Because she did not want her children to suffer from the loss of income following the separation, she turned to credit cards to maintain the same lifestyle.

Despite her good intentions, this choice led to overspending. Furthermore, Julia had been counting on a pay raise, telling herself she would repay her debts, but the raise never happened.

Unable to continue making her monthly minimum payments on her credit cards, Julia decided to meet with a Licensed Insolvency Trustee (LIT) at Ginsberg Gingras.  The LIT quickly settled Julia’s anxieties and reassured her.

After having heard the Licensed Insolvency Trustee’s recommendations, Julia decided to file a consumer proposal.

Julia’s debts before the proposal

Once the consumer proposal was drafted, Julia signed the documents, and the LIT filed them with the Office of the Superintendent of Bankruptcy Canada (OSB). The LIT transmitted the proposal to Julia’s creditors. The creditors had 45 days to send their proof of claims to the LIT and request that a creditor meeting be held, if they wished. Two scenarios are possible:

• The LIT is not required to convene a creditor meeting if less than 25% of creditors submit a request. The consumer proposal is therefore deemed accepted.
• The LIT must convene a creditor meeting if at least 25% of creditors submit a request.

Following a creditors meeting, adjustments may be made to the proposal to satisfy creditors. During a meeting, creditors can vote against a proposal if they disagree with the terms. For a proposal to be accepted, it must be approved by creditors holding 50% + 1 of the debt total.

In Julia’s case, the proposal was accepted as is, and the creditor meeting was not necessary.  To settle her debts, Julia made 60 monthly payments of $200 each for a total of $12,000, with zero interest.  She then received a Certificate of Full Performance of the consumer proposal. Her balance and her debts from her overspending were erased.

Julia’s debts after her consumer proposal

In summary, Julia filed a consumer proposal and fulfilled all her obligations.  Her consumer proposal cost her $12,000 in payments on a debt of $31,252 total. The consumer proposal also allowed her to avoid bankruptcy.

At the end of the procedure, Julia had no other debt. She learned from this experience and gradually rebuilt her credit. Julia now understands how to avoid overspending. She always makes purchases based on her budget. Her children aren’t missing out, and since this misadventure, Julia has shared her new knowledge about personal finances with them.

Help to release you from your debts

Whether or not you are having financial difficulty like Julia, we can help free you from your debts. Together, we will find the best solution for your budget.

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