Kids' behaviour linked to level of parents' level of unsecured debt

    1 of 1 2 of 1

      The effects of Vancouver ranking as third worst on a housing affordability study in nine countries may go beyond the obvious.

      New research shows that certain types of debt can have adverse effects on children’s socio-emotional well-being.

      A study by researchers at the University of Wisconsin at Madison and Dartmouth published by the journal Pediatrics found that children of parents with higher levels of mortgage and student debt had a greater socioemotional well-being with fewer behavioural problems than children whose parents had higher levels of or increases in unsecured debt (credit card or other types of debt that is not tied to an asset).

      High levels of unsecured debt may create stress or anxiety in parents, which may hinder their ability to exhibit good parenting behaviours, the researchers found.

      The study was led by Lawrence M. Berger, director of the Institute for Research on Poverty and doctoral program chair in the School of Social Work at the University of Wisconsin-Madison, and Jason N. Houle, assistant professor of sociology at Dartmouth.

      The findings suggest that when parents decide to borrow money, they should try to avoid loans with high fees and high interest rates, to the greatest extent possible.

      Comments