Written By: Blain Pearson and Megan McCoy

Having a Significant Other Reduced Financial Strain During the COVID-19 Pandemic Summary

Summary: 

This quantitative study used data culled from the Health and Retirement Study (HRS). Significant others were defined as being in a committed, coupled relationship. This relationship was impactful in managing financial responsibilities as well as financial strain during the heightened period of the COVID-19 pandemic. 

Study Highlights: 

• Most people surveyed reported they never missed payments. 

• Partnered relationships were more often found to never miss a mortgage, credit card, or utility payment. 

• Partnered relationships were also significantly less likely to be financially worried, but there was not a statistically significant difference in feeling like they had control over their financial situation. 

• Households, including partnered relationships, may be able to pool resources thereby strengthening the efficiency of the household to maintain payments during times of upheaval. 

Important Implications for Practitioners: 

• Age matters. Research that addresses a younger demographic suggests that romantic relationships increase financial stress. Navigating strength and length of relationship can be an important part of understanding how financial stress will impact a couple, regardless of age.  

• When helping clients navigate financially stressful events, give time to discussing concerns that address the root causes of the financial stress/worry. 

• Recognize that as a financial professional you may fill a void for someone not in a partnered relationship—someone who can provide professional and emotional* support during times of financial uncertainty.  

• *Know your limitations and set healthy boundaries. Accredited Financial Counselors (AFC®) are not therapists and may not have the appropriate training to provide more than a supportive ear. 

• Create a network of professionals you can refer clients to when needed. 

Important concepts and definitions: 

• Objective financial strain: Comprised of questions about missed payments on mortgages, credit cards or other debt, bills such as medical and utilities, and not having enough money to purchase food.  

• Subjective financial strain: Made up of how worried they were about their financial situation during March 2020-March 2021 and how much control they had over their financial situation during the same period. 

Highlights of the sample population: 

• All respondents are 50+; average age was 65 years old. 

• The study is conducted biennially by the University of Michigan via mail-in survey; this survey specifically addressed “Perspectives of the Pandemic”. 

• Almost ¾ of the sample is white  

• Mean income was almost $90,000 and average net worth in excess of $500,000. 

• More than half of the sample reported their health as “Good”, “Very Good”, or “Excellent”. 

Citation Information: 

Pearson, B., & McCoy, M. A. (2024). Having a Significant Other Reduced Financial Strain During the COVID-19 Pandemic. Journal of Financial Counseling and Planning, 35(2), 202-214.