Background
The relationship between financial hardship and subjective wellbeing has been documented across the world, especially among marginalized communities. Nevertheless, how people with psychiatric diagnoses across racial/ethnic groups experience and cope with hardships is not well understood.
Aims
To examine whether: (1) subjective financial hardship (SFH) and hope mediate the relationship between objective financial hardship (OFH) and life satisfaction (LS) among people with psychiatric diagnoses; and (2) race/ethnicity moderate the effect of OFH on SFH, and the effect of SFH on hope and LS.
Method
We collected data from a racial/ethnically diverse sample (n=215) of individuals with psychiatric diagnoses in the U.S. Structural equation modeling tested meditational relationships between OFH and LS through SFH and overall hope or its agency and pathways subscales, and the moderation effects of race/ethnicity.
Results
SFH and hope mediate the relationship between OFH and LS. Mediation by hope is driven by its agency component, not pathways. An increase in SFH is associated with decreases in agency and LS, while self-identifying as Black and Hispanic is associated with increases in hope and LS. Moderation analysis reveals that racial/ethnic identification interacts with OFH and SFH respectively, but the effects of Black and Hispanic identification seem to differ. Identifying as Black seems to buffer the effect of OFH and SFH on LS, while identifying as Hispanic buffers the effect of OFH on SFH, and SFH on Hope.
Conclusion
Racial/ethnic identification as Black or Hispanic seems to buffer the effect of objective and subjective financial hardship on hope and life satisfaction, but these effects seem to differ across groups. Future research should examine how sociocultural constructions of hope and wellbeing shape resilience across racial/ethnic groups.