Document Type

Working Paper

Publication Date

Fall 9-30-2026

Abstract

We examine financial stress among low- and moderate-income Latino adults in California during a period of elevated prices and the 2025 holiday season. Participants from the Mobile Financial Diary cohort (n = 69; 218 person-wave observations) completed four monthly surveys covering November 2025 through February 2026. We compare four measures of financial health, wellbeing, stress, and anxiety across income groups and analyze open-ended responses using the RADaR technique. Respondents below the sample median income had lower financial health and higher financial stress and anxiety, whereas perceived financial wellbeing did not differ significantly. Holiday stress was similar across groups, but lower-income respondents attributed it to not having enough money to spend, while higher-income respondents more often cited overspending. Rising costs of groceries, gas, rent, and health insurance is associated with financial stress; stable income and planning characterized those reporting none. Single measures of perceived financial wellbeing may understate income gaps in financial stress.

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