Household Financial Stress and Relationships During the COVID-19 Pandemic: Findings From Australian Survey Data

Abstract

During the COVID-19 pandemic, disruptions to finances and relationships were significant. Analysing Australian longitudinal survey data from May 2020 and August 2021, this study examines the Family Stress Model, which posits that financial stress influences relational dynamics within households. Our analysis indicates a significant reduction in financial stress during the observed COVID-19 periods, likely buffered by government support measures and adjusted household budgets. However, financial stress remained significantly higher among certain demographics, including middle-aged adults, households with dependents and lower-income households. Financially stressed individuals experienced lower relationship satisfaction and coparenting quality. In May 2020, financially stressed unpaid carers, in particular, reported lower relationship satisfaction, and those with children reported inferior coparenting interactions. This study underscores the uneven distribution of pandemic-related financial stress and its cascading effects on family relationships in Australia.