Psychology Literature Review
Instructor: Elizabeth Matthews
October 20, 2021
Psychology Literature Review
The psychological concepts explored in this research include the association between changes in financial situation and condition of health. This aspect is because the financial positions of individuals have a significant influence on their health status, for instance, by determining the accessibility and affordability of essential care. Variations in the financial situation could also result in significant mental health and wellness changes as individuals encounter increasing pressures to honor their bills and enter into more debt (De Witte, Pienaar & De Cuyper, 2016). Additionally, health conditions could significantly impact financial situation changes, especially for older adults with limited income sources. Such individuals are forced to make out-of-pocket payments that leave them financially unstable increasingly. Therefore, it is crucial to evaluate the intersection between changes in financial situation and condition of health to improve the quality of living for individuals.
Patterns in Research
Individuals’ financial status has significant implications for self-related health. However, the association between decreasing income and unemployment with deteriorating health is not clearly understood. Tøge (2016) evaluated longitudinal data to determine the impact of income, financial strain, and unemployment on individuals’ health. The study concluded that financial strain is a potential mediator of patients’ health. The negative health impacts of decreasing finances and unemployment occur as individuals encounter diminishing purchasing power for different health promotion items, services, and activities. Changes in financial status also imply that individuals would be forced to reduce the consumption of non-essential goods, which would reduce the quality of their living. Less consumption of recreation and luxury commodities would mean less fun and negatively impact individuals’ mental health and wellbeing. Numerous governments have implemented measures for cushioning their citizens against the adverse effects of unstable income and unemployment. Such programs are crucial for improving public health by ensuring citizens’ financial stability, enabling access to essential healthcare interventions and resources.
Past years have witnessed increased concern whether the rising healthcare costs and increasing household debt levels could threaten the financial stability of citizens, especially older adults. In the United States, this demographic group spends about 19 percent of its income on out-of-pocket healthcare expenses that are projected to increase tremendously in the future. Such trends occur in the backdrop of increasing concerns that numerous citizens and households are recording faster growth in their debt levels than income. Past studies have found that poor health increases significantly with wealth depletion (Kim & Lyons, 2008). This aspect shows the need for determining the exact interactions between the health and financial security of citizens. Numerous elder citizens, especially the retired, have limited income sources and increasingly use their money on health. This aspect implies that the elderly could encounter issues in their portfolios, such as liquidity and investment asset holdings.
Concepts Related to theory
Change in the financial situation
Today, people are witnessing significant changes in their financial situation with reducing savings rates and insufficient long-term financial planning such as retirement. This aspect has made financial wellbeing a crucial consideration for numerous individuals and families across nations. Changes in the financial situation have been a familiar pattern as the global economy slows due to persistent financial turbulences. This aspect has influenced increased consideration of healthy spending and saving habits of individuals among policymakers and regulators. Past reports have revealed that household savings and income levels have been reducing globally (Brüggen, Hogreve, Holmlund, Kabadayi et a., 2017). The younger generations are increasingly vulnerable to such threats as financial struggles lead them to increased debt. This aspect has resulted in a growing concern about the wellbeing of such individuals considering their ability to afford long-term healthcare plans and make savings plans for their retirement.
Condition of health
Financial factors significantly affect individuals’ health due to their influence on behavioral patterns, for example, alcohol and drug consumption. The public health community has persistently expressed concerns regarding the adverse health effects of the ongoing global financial crises. Such trends have resulted in unemployment, increasing public budget deficit, and decreased gross domestic product. Such trends have influenced numerous governments to introduce policies for influencing public health in the face of economic decline. Decreasing financial abilities influences individuals to engage in unhealthy behaviors, such as alcohol consumption and drug abuse that cause multiple health issues (De Goeij et al., 2015). Such trends have a significant impact on individual’s and public health as well as social welfare. Financial issues could also impact health by increasing anxiety, stress, and depression as individuals lose their jobs, social status, and relationships. This aspect would influence individuals to engage in health-compromising behaviors such as alcohol consumption to dampen the stresses resulting from changes in their financial situation.
Value and Limitation of Theoretical Concepts
Change in the financial situation
Changes in financial situation determine whether individuals can afford essential products and services. This aspect has significant implications for healthcare, determining whether individuals can afford the required preventive and curative care and services. Improving financial situation implies that individuals can afford quality care and have a higher propensity to consume, positively impacting their physical and mental health (Cervero-Liceras, McKee & Legido-Quigley, 2015). Improving financial situation would mean increased ability to consume, influencing individuals to try unhealthy lifestyles such as overeating fast foods. The deteriorating financial situation could influence individuals to indulge in risky behaviors such as alcohol and drug use to control their stress and pressures.
Condition of health
The health situation has significant implications on the quality of living and wellbeing of individuals. Healthy individuals are likely to lead happy and productive lives, unlike the sick that are likely to encounter numerous challenges and be physically inactive. Health has a significant influence on the financial situation of individuals (Veenhoven, 2008). Healthy individuals are energetic and productive, which enables them to improve their financial situation. However, healthy individuals may consider themselves highly energetic and would be more willing to engage in risky behaviors and activities that would increase the threat to their health. Ill people suffer from pain, reduced energy, and lack of motivation, which reduces their productivity and financial position. Unhealthy individuals also spend a significant portion of their finances on treatment and medicines, which increase the economic burden of the disease.
Improvement in the financial situation would ensure affordability to essential products and services and enhance individuals’ health. Decreasing financial situation would increase the cost of living and increase stress levels, influencing individuals to engage in health-threatening and risky behavior.
Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of Business Research, 79, 228-237. doi: 10.1016/j.jbusres.2017.03.013
Cervero-Liceras, F., McKee, M., & Legido-Quigley, H. (2015). The effects of the financial crisis and austerity measures on the Spanish health care system: A qualitative analysis of health professionals’ perceptions in the region of Valencia. Health Policy, 119(1), 100-106. doi: 10.1016/j.healthpol.2014.11.003
De Goeij, M. C., Suhrcke, M., Toffolutti, V., Van de Mheen, D., Schoenmakers, T. M., & Kunst, A. E. (2015). How economic crises affect alcohol consumption and alcohol-related health problems: A realist systematic review. Social Science & Medicine, 131, 131-146. doi: 10.1016/j.socscimed.2015.02.025
De witte, H., Pienaar, J., & De cuyper, N. (2016). Review of 30 years of longitudinal studies on the association between job insecurity and health and well‐being: Is there causal evidence? Australian Psychologist, 51(1), 18-31. doi:10.1111/ap.12176
KIM, H., & LYONS, A. C. (2008). No pain, no strain: Impact of health on the financial security of older Americans. Journal of Consumer Affairs, 42(1), 9-36. doi:10.1111/j.1745-6606.2007. 00092.x
Tøge, A. G. (2016). Health effects of unemployment in Europe (2008–2011): A longitudinal analysis of income and financial strain as mediating factors. International Journal for Equity in Health, 15(1). doi:10.1186/s12939-016-0360-6
Veenhoven, R. (2007). Healthy happiness: Effects of happiness on physical health and the consequences for preventive health care. Journal of Happiness Studies, 9(3), 449-469. doi:10.1007/s10902-006-9042-1