There's a reason why your mum always insisted since you were a child that as you grow up you should start saving money. It's always good to have a backup option to rely on in case things go wrong, which is why maintaining good financial habits is essential. However, a new study has found that this is not all that saving up has to offer. As per the study, having good financial habits can actually prevent one from developing depression and can even promote higher relationship satisfaction.
For the study, researchers conducted a six-year-long survey on a number of students starting from the fourth year of their college. During this period, the students were asked at three different points to report their financial habits which included, spending, saving, borrowing, budgeting etc. “We found that financial behaviours during that fourth year of college continue to have positive implications for emerging adults more than half a decade later,” said Melissa Curran, Associate Professor at University of Arizona in the US.
The study was able to find that the students who reported good financial habits during the fourth year of their college or subsequently, were able to identify themselves as adults. This would be at the age of about 26-31. The reason for this was that because they practised good financial habits, they were less prone to depression and had better relationships which classified as being an adult to them.
The lead author also said that while this study focused only on college students and their identity, more studies should be conducted on adults who were way past the college stage to figure out how financial habits can take a toll on their mental health. Stay tuned for more updates.
