6 Ways Growing Up Poor Can Impact Your Spending Habits

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Growing up poor impacts how people make decisions about saving and spending money throughout life. Struggling with basic needs and a lack of resources when young can create a scarcity mindset when presented with financial opportunities in the future. 

On the flip side, experiencing poverty can drive others to chase success at any cost. For better or worse, it’s essential to be aware of these behaviors and habits to move forward in life as an adult. 

Here are six ways a poor upbringing can influence one’s spending habits.

Hiding Money Away

Some individuals who experience poverty tend to hide money away in adulthood. It’s a way they protect themselves from avoiding the financial troubles they experienced when they were young. While saving one’s earnings is a good practice, it’s also important for people to allow themselves to spend money on things they need and want.

Accepting Less Money Than What You Deserve

Low self-esteem and a lack of self-worth can accompany a poverty-based mindset. Many people feel like they don’t deserve to be compensated for what they are worth and settle for a lower salary or a cheaper rate for their services. 

They are often fearful of getting replaced by a worker or competitor who charges less. Whether you’re an employee or business owner, it’s important to assert your value and explain how your skills and experience make you worth their investment.

Spending Whatever It Takes To Get To the Top

A desire to escape poverty can push an individual to the extremes by refusing to settle for anything less than the best. They apply to the best universities and put themselves deep in student loan debt, apply to the most prestigious law firms or institutions, and buy the most expensive clothes and lifestyle, no matter the cost. 

Always weigh your options and consider what you can afford to pay today and in the future. Borrowing money you can’t afford to pay back can put you and your family in a bad position down the road. Sometimes, the middle ground is the best choice.

Staying in a Safe Job You Dislike

Many people who have experienced poverty tend to stay in employment positions that others don’t want because they are safe and less competitive. For example, someone might stay in a job as a bus driver or dishwasher in a restaurant rather than apply for a management track with more pressure and responsibility because they’re worried that they could fail and lose the position.

This person prefers to remain in a job they dislike that offers more stability and security.

Buying Sale Items You Don’t Need

Some people who have experienced a low income in the past tend to stock up on items just because they are on sale. They might purchase an overabundance of products they’ve never used for their discounted price even when they don’t need or want them. What causes this habit is the bitter memory of running out of food, clothing or household items during their youth and never wanting to repeat the experience again. 

Spending All Your Money 

Some individuals spend their money as soon as they get paid for fear of someone else taking it away from them. A Reddit user reported his parents repeatedly taking money out of his childhood bank account they had access to when he was a boy. As he got older, his parents would ask to borrow money. 

In response, he would spend the majority of his paycheck when he got paid and leave a small balance remaining. Someone who has this experience when young might repeat the behavior with a spouse when they become an adult.

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