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Negative home equity is due to declines in home values, largely driven by economic factors, and increases in mortgage debt, a decision made by individuals. Yet, empirical research assessing the individual’s role in the occurrence of negative home equity is limited. This study used the 2018 National Financial Capability Study to explore the association between financial literacy, savings, and debt at the individual level on the occurrence of negative home equity. The findings revealed that objective financial knowledge and financial security were negatively associated with the occurrence of negative home equity, while having a home equity loan, using a payday loan, having medical debt, and exceeding credit card limits were positively associated with the occurrence of negative home equity.

This study examines the associations among financial hardship, perception of situation, social support, and perceived stress using data from the second wave of the National Survey of Midlife Development in the United States. Both financial hardship and perception of situation were hypothesized to be positively associated with perceived stress, whereas social support was hypothesized to act as an intervening variable between perception of situation and perceived stress. The results from a structural equation model showed that (a) financial hardship was a precursor of perception of situation, (b) perception of situation exhibited a positive effect on perceived stress, and (c) social support was negatively related to the level of perceived stress.

This study establishes an integrated conceptual framework to examine the influences of financial socialization on young adults’ financial and subjective well-being. Using the National Financial Well-Being Survey and structural equation modeling methods with a national sample of young adults aged 18–35, this study highlights two key potential influences of financial socialization: (a) early financial socialization experience is directly and positively associated with young adults’ financial knowledge and financial motivations (goal-oriented financial planning and self-control ability) and (b) there are indirect and positive associations between financial socialization and young adults’ perceived financial skill, financial behavior, and financial and subjective well-being. Moreover, perceived financial skill significantly mediates the relationship between financial motivations and financial management behavior and could indirectly influence financial and subjective well-being. Finally, this study also finds positive associations among financial management behavior, financial well-being, and subjective well-being of young adults.