A Study on the Bidirectional Effects of Depression and Household Savings: Empirical Evidence from CHARLS

Background: Depression has become a prevalent and serious public health problem worldwide, attracting widespread attention from governments and international organizations and being included in key health policy issues. There is a close interaction between depression and economic factors such as household savings, a link particularly pronounced in Asian countries. However, evidence of a two-way association is limited. This study aims to explore the two-way relationship between depression and savings among middle-aged and older adults. Methods: Data were collected from 6746 respondents in the China Health and Retirement Longitudinal Study (CHARLS) in 2013, 2015, and 2018. A cross-lagged panel model was used to test the two-way relationship between depression and savings. Results: The results showed a significant cross-time effect of depression on savings (T0 → T1: β = −0.052; T1 → T2: β = −0.077), suggesting that higher levels of depression in the early stages are associated with lower levels of savings later. Moreover, savings had a stronger negative predictive effect on depression (T0 → T1: β = −0.463; T1 → T2: β = −0.510), indicating that higher levels of savings in the early stages are associated with lower levels of depression later. Furthermore, the grouping test showed that the two-way negative effect remained stable in both male and female groups (p ≤ 0.001). Conclusions: This study reveals the dynamic two-way influence between depression and savings, providing a basis for policy formulation that synergistically promotes residents’ mental health and household financial stability.