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Households’ Net Worth Accumulation Patterns and Young Adults’ Financial Health: Ripple Effects of the Great Recession?

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  • Terri Friedline
  • Ilsung Nam
  • Vernon Loke

Abstract

We examined households’ dynamic patterns of net worth accumulation between 1999 and 2009 and asked whether these patterns related to the financial health of young adults growing up in those households. Two patterns of net worth emerged—the first remained high and stable and the second experienced a precipitous decline between 2007 and 2009. Young adults who grew up in households with high and stable net worth also experienced the greatest benefit in financial health. Given wealth losses in the wake of the Great Recession and the ripple effects those losses may have had—and may continue to have—on households and their children, policies that stimulate wealth accumulation may be feasible and timely strategies for improving financial health. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Terri Friedline & Ilsung Nam & Vernon Loke, 2014. "Households’ Net Worth Accumulation Patterns and Young Adults’ Financial Health: Ripple Effects of the Great Recession?," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 390-410, September.
    • Handle: RePEc:kap:jfamec:v:35:y:2014:i:3:p:390-410
    DOI: 10.1007/s10834-013-9379-7
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    References listed on IDEAS

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    Cited by:

    1. Sonya L. Britt, 2016. "The Intergenerational Transference of Money Attitudes and Behaviors," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(3), pages 539-556, November.
    2. Adriana M. Reyes, 2022. "Race and Ethnic Differences in Financial Dependency of Coresident Young Adults During Economic Recessions and Over Time," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 51-65, March.
    3. Terri Friedline & Robert Hughes & Paul Johnson, 2014. "Toward Healthy Balance Sheets: Are Savings Accounts a Gateway to Young Adults’ Asset Diversification and Accumulation?," Review, Federal Reserve Bank of St. Louis, vol. 96(4), pages 359-389.
    4. Terri Friedline & Zibei Chen & So’Phelia Morrow, 2021. "Families’ Financial Stress & Well-Being: The Importance of the Economy and Economic Environments," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 34-51, July.
    5. Iacopo Odoardi & Carmen Pagliari, 2020. "Household Wealth as a Factor of Economic Growth: A Case Study of Italy," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(3), September.

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