VCE Psychology Unit 1 AOS 1 Practice Test 2026 – Complete Exam Prep

Poverty acts as a powerful external factor that shapes mental wellbeing by creating more stress and fewer supports in a person’s life. When money is tight, people experience ongoing financial insecurity, housing instability, food insecurity, and living in environments with safety concerns or noise and crowding. These conditions keep the body in a state of chronic stress, which can affect mood, sleep, concentration, and overall functioning. Over time, this persistent stress can contribute to mental health problems such as anxiety and depression.

At the same time, poverty limits access to resources that help manage stress and protect mental health. This includes fewer opportunities to access quality healthcare and mental health services, less consistent education and recreation options, and smaller or less reliable social support networks. With fewer buffers to cope with daily stressors, the likelihood of developing or worsening mental health issues rises.

Poverty also heightens risk by increasing exposure to adverse life events, trauma, discrimination, and social exclusion, all of which can negatively impact mental wellbeing. While some individuals may demonstrate resilience, the overall pattern is that poverty tends to elevate stress, reduce protective resources, and increase risk to mental health.

The other options don’t fit because poverty does not reduce stress or improve access to resources and opportunities; it generally does the opposite, increasing stress and limiting supports.