ACCI Conference 2026

Family instability has become increasingly prevalent in the United States, raising concerns about its long-term financial implications. Grounded in life course theory, this study examines the relationship between childhood family stability and adult financial outcomes, specifically total net worth and reliance on public assistance. Using data from the National Longitudinal Survey of Youth 1979 (NLSY79), spanning 1985 to 2020, this study employed correlated random effects (CRE) models to account for unobserved heterogeneity. Results indicate that individuals who lived continuously with both biological parents until the age of 18 had, on average, approximately 66% higher net worth and received 9% less public assistance in adulthood. This study contributes uniquely to the literature by looking at both ends of the economic spectrum (i.e., net worth and public assistance). As family instability becomes more prevalent, financial professionals and policymakers must consider these developmental patterns when designing interventions to promote financial security.

Author(s): Mikel Van Cleve, Nicholas Kieren, Stuart Heckman