Exploring Financial Strain in a Student Population: a Stress and Coping Approach

Perry, Jessica M. (2026) Exploring Financial Strain in a Student Population: a Stress and Coping Approach. Doctoral thesis, Birmingham City University.

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Abstract

With rising higher education debt and increasing living expenses, further exacerbated by macroeconomic instability, students are increasingly vulnerable to financial strain - a financial state characterised by numerous financial stressors that can detrimentally affect wellbeing (Aranda & Lincoln, 2011). The objective of the work presented in this thesis was to deepen the understanding of the relationship between financial strain and UK higher education student mental health. Guided by the Transactional Model of Stress and Coping (Lazarus & Folkman, 1984), this objective was achieved in two ways.

First, grounded in the concept of cognitive appraisal - the subjective evaluation that determines whether a situation is perceived as stressful (a central tenet of the TMSC; Lazarus & Folkman, 1984) - Studies 1 and 2 sought to better understand how indicators of financial strain (e.g., financial stressors such as higher education debt, personal debt, and financial difficulties) contribute to the experience of financial anxiety - an individual’s sense of worry or concern regarding financial matters (Archuleta et al., 2013). Employing a cross-sectional survey design, Study 1 (N = 1,454) revealed that students’ financial perceptions, such as their perceived financial satisfaction, predicted financial anxiety above and beyond the presence of financial stressors, such as having personal debt and experiencing financial difficulties. Building on these findings, Study 2 (N = 300) examined cognitive appraisal as a psychological mechanism linking financial strain to financial anxiety. Mediation analysis showed that the economic impact of the cost-of-living crisis had a significant direct effect on financial anxiety, and that this association was partially explained by cognitive appraisal: Specifically, the personal relevance of the crisis (i.e., primary appraisal) and the perceived ability to manage its impact (i.e., secondary appraisal) formed a significant serial pathway linking the crisis’s financial impact to financial anxiety.

Second, recognising coping as a crucial determinant of stress-related outcomes (Lazarus & Folkman, 1984), Studies 3 and 4 examined whether coping strategies influence the relationship between financial anxiety and psychological distress. A key finding from the cross-sectional survey in Study 3 (N = 1,454) showed that students’ tendency to use cognitive reappraisal in stressful situations (e.g., “I try to see things in a different light, to make it seem more positive”) negatively moderated the relationship: Among those experiencing high financial anxiety, individuals who reported frequent use of cognitive reappraisal strategies reported lower levels of psychological distress compared to those who reported infrequent use. Building on these findings, Study 4 (N = 123) employed a daily-diary design to examine the use of cognitive reappraisal specifically in response to daily financial stressors. A significant positive association was found between daily financial stress level and negative affect; however, cognitive reappraisal did not moderate this association.

Taken together, these findings contribute to a more nuanced understanding of the association between financial strain and student mental health. They suggest that while financial stressors clearly contribute to students’ financial anxiety, the way these stressors are appraised - particularly in terms of personal relevance and perceived controllability - may help to explain their impact on financial anxiety. Financial anxiety, in turn, is a strong predictor of psychological distress, and while cognitive reappraisal may buffer this association, its protective effect appears modest and may not extend to students’ day-to-day experiences of financial strain, which appears to be linked to changes in daily affect.

Item Type:	Thesis (Doctoral)
Dates:	Date Event 1 June 2026 Accepted
Uncontrolled Keywords:	Financial Strain, Financial Anxiety, HE Students, Coping, Cognitive Appraisal
Subjects:	CAH04 - psychology > CAH04-01 - psychology > CAH04-01-04 - psychology and health CAH15 - social sciences > CAH15-04 - health and social care > CAH15-04-03 - health studies CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance CAH22 - education and teaching > CAH22-01 - education and teaching > CAH22-01-01 - education
Divisions:	Doctoral Research College > Doctoral Theses Collection Life and Health Sciences > Psychology
Depositing User:	Louise Muldowney
Date Deposited:	07 Jul 2026 13:25
Last Modified:	07 Jul 2026 13:25
URI:	https://www.open-access.bcu.ac.uk/id/eprint/17106

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