Sailing through setbacks - what makes personal financial resilience

We investigate financial adaptation by young adults (18 to 40 years old) during a recent cost-of-living crisis in a developed economy. Interview, financial, demographic and psychographic data are brought together to shed new light on personal financial resilience, or the capacity to adapt to financial shocks. The results of the reported study highlight the importance of operational
flexibility for financial resilience, e.g., willingness to utilise available financial resources and products, to change lifestyle and consumption patterns, to find new sources of income and to change or postpone goals. We also identify personal traits that appear to be associated with financial resilience, notably optimism. Policy implications and an agenda for further research are discussed.