Financial stress, which is common among African Americans, has been linked to higher psychological distress. This study examines whether racial identity moderates the association of financial stress with depressive symptoms. If so, through what mechanisms does it operate? We investigated these questions in a moderated mediation analysis, using data from the National Survey of American Life (N = 3,570). Of the two racial identity dimensions examined, positive group evaluation but not closeness to other African Americans was associated with less adverse effects of financial stress on depressive symptoms. In addition, we tested two mechanisms that could explain the buffering effect. Psychological resources (self-esteem and, less consistently, mastery), explained 26% to 46% of the buffering effects of racial identity; family support explained 8%. That is, positive group evaluations fortify African Americans in the face of hard times. They do so primarily through their association with a greater sense of self-worth.
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