FINANCIAL STRESS,NEIGHBORHOOD STRESS,AND WELL‐BEING: MEDIATIONAL AND MODERATIONAL MODELS

This study explores whether high quality neighborhoods or social integration have protective effects on psychological well‐being, especially in the face of financial challenges. Previous research suggests that low levels of financial stress, lower neighborhood stress, and social integration are each associated with greater levels of well‐being; few studies, however, investigate these contextual variables in confluence. Data from the Notre Dame Study of Health and Well‐Being were used to investigate whether (a) neighborhood stress mediates the relationship between financial stress and psychological well‐being and (b) social integration moderates the relationship between neighborhood stress and psychological well‐being. Results were consistent with both hypotheses and were replicated in data from Successful Aging in Context. These results suggest that proximal contextual variables, such as social integration and neighborhood stress can arbitrate the effect that less proximal contextual variables, such as economic conditions, have on individuals’ psychological well‐being.