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Do people who grow up poor tend to spend less money even when they're not poor

Home Personal Finance and Budgeting Do people who grow up poor tend to spend less money even when they're not poor

  • MPMD MPMD 
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    i actually don’t think there is a correlation

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    I agree with FLP. I think its less about whether you grew up poor/middle class/rich and more about the mindset of your parents with regard to money. My parents were fiscally conservative, lower middle class, my wife’s parents we’re wealthy but lived with a scarcity mindset (immigrants). We both finished college in 2009 and saw a lot of people without jobs. We both tend to be conservative fiscally, and tend toward super-saver.

    Certainly someone has some actual data on this…?

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    That’s my position as well. I think you can be anywhere on the spectrum with respect to this.

    Suspect it has more to do with parental attitudes and innate characteristics of the kid than anything to which we’d like to assign virtue or lack thereof.

    My wife grew up very wealthy, private school, new cars, latest clothes etc, she has a work ethic that is at least 2 std dev > mean. I’m sometimes almost a little intimidated by her ability to put her head down and just bash her way through problems by working harder than any other doc in her group.

    #233616 Reply
    CM CM 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #233635 Reply
    Avatar RetiredERdoc 
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    I grew up poor and have always been frugal. As per the other thread, I started working at 14 until I retired at 60. The only non frugal things I do are eat out a lot and buy new cars, but keep them for 10 yrs or so.

    #233641 Reply
    TrumpMD TrumpMD 
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    Lots of people who grow up poor are in families with poor spending and saving habits that might carry over.  They don’t get lessons from Rich Dad.

    "Tax loss harvesting": buy high and sell low to achieve true wealth

    #233669 Reply
    q-school q-school 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Click to expand…

    i also interpreted the question as spending less relative to income.  you can change cars every two years and still mentally spend less by buying used and selling before tire change.  you can still clip coupons even when your net worth is 7 million.  you can still buy generic versions or wait for sales or try to maximize value rather than purely enjoyment, ie  this one is perfect but twice the price of that other one that i will enjoy 80% as much.   i was teasing the neurosurgeon who makes well into 7 figures because i ran into him at the grocery store and he had 12 boxes of cereal (every single one in the store) because they were on sale for $1 off.  i asked him what the poor people were going to eat.  he just laughed.

     

    #233717 Reply
    Liked by hatton1, CM
    fatlittlepig fatlittlepig 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Click to expand…

    i also interpreted the question as spending less relative to income.  you can change cars every two years and still mentally spend less by buying used and selling before tire change.  you can still clip coupons even when your net worth is 7 million.  you can still buy generic versions or wait for sales or try to maximize value rather than purely enjoyment, ie  this one is perfect but twice the price of that other one that i will enjoy 80% as much.   i was teasing the neurosurgeon who makes well into 7 figures because i ran into him at the grocery store and he had 12 boxes of cereal (every single one in the store) because they were on sale for $1 off.  i asked him what the poor people were going to eat.  he just laughed.

     

    Click to expand…

    As people may have noticed, I run on the frugal side, however a neurosurgeon who has a 7 figure salary who is buying 12 boxes of cereal to save 12 bucks doesn’t have a good grasp of math. I remember I saw an interview with Lebron, I guess he has a reputation of pretty cheap amongst his teammates, and he refuses to pay for the premium version of pandora or spotify. That also shows a very poor grasp of math.

    #233730 Reply
    Avatar mapplebum 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Click to expand…

    i also interpreted the question as spending less relative to income.  you can change cars every two years and still mentally spend less by buying used and selling before tire change.  you can still clip coupons even when your net worth is 7 million.  you can still buy generic versions or wait for sales or try to maximize value rather than purely enjoyment, ie  this one is perfect but twice the price of that other one that i will enjoy 80% as much.   i was teasing the neurosurgeon who makes well into 7 figures because i ran into him at the grocery store and he had 12 boxes of cereal (every single one in the store) because they were on sale for $1 off.  i asked him what the poor people were going to eat.  he just laughed.

     

    Click to expand…

    As people may have noticed, I run on the frugal side, however a neurosurgeon who has a 7 figure salary who is buying 12 boxes of cereal to save 12 bucks doesn’t have a good grasp of math. I remember I saw an interview with Lebron, I guess he has a reputation of pretty cheap amongst his teammates, and he refuses to pay for the premium version of pandora or spotify. That also shows a very poor grasp of math.

    Click to expand…

    Not the point but I don’t understand paying for a music subscription, especially Pandora. Pandora is seriously the worst. Husband and I do not and will never agree on this but if you have Prime, Amazon Music is more than sufficient. Whole albums! No extra cost! I’m sure everyone will ask my recommendation so here it is. I’ve been listening to complete albums of Kishi Bashi, Son Lux, Laura Mvula (<– all classically trained artists), Ibeyi, Sohn, Anohni, Daughter, London Grammar…all free with an existing Prime membership! Plus there’s playlists AND stations so if you insist on not being able to listen to complete albums / choose who you’re listening to (ahem, Pandora) you can use those features. Big fan.

    #234269 Reply
    fatlittlepig fatlittlepig 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Click to expand…

    i also interpreted the question as spending less relative to income.  you can change cars every two years and still mentally spend less by buying used and selling before tire change.  you can still clip coupons even when your net worth is 7 million.  you can still buy generic versions or wait for sales or try to maximize value rather than purely enjoyment, ie  this one is perfect but twice the price of that other one that i will enjoy 80% as much.   i was teasing the neurosurgeon who makes well into 7 figures because i ran into him at the grocery store and he had 12 boxes of cereal (every single one in the store) because they were on sale for $1 off.  i asked him what the poor people were going to eat.  he just laughed.

     

    Click to expand…

    As people may have noticed, I run on the frugal side, however a neurosurgeon who has a 7 figure salary who is buying 12 boxes of cereal to save 12 bucks doesn’t have a good grasp of math. I remember I saw an interview with Lebron, I guess he has a reputation of pretty cheap amongst his teammates, and he refuses to pay for the premium version of pandora or spotify. That also shows a very poor grasp of math.

    Click to expand…

    Not the point but I don’t understand paying for a music subscription, especially Pandora. Pandora is seriously the worst. Husband and I do not and will never agree on this but if you have Prime, Amazon Music is more than sufficient. Whole albums! No extra cost! I’m sure everyone will ask my recommendation so here it is. I’ve been listening to complete albums of Kishi Bashi, Son Lux, Laura Mvula (<– all classically trained artists), Ibeyi, Sohn, Anohni, Daughter, London Grammar…all free with an existing Prime membership! Plus there’s playlists AND stations so if you insist on not being able to listen to complete albums / choose who you’re listening to (ahem, Pandora) you can use those features. Big fan.

    Click to expand…

    Yep, I love Spotify. As cheap as I am I could not go back to the free version, Spotify premium is great.

    #234275 Reply
    Liked by mapplebum
    Avatar Anne 
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    I think there is both nature and nurture involved but people generally think it’s all nurture.  So if parents are frugal and you inherit that gene everyone will say you are frugal because that’s the way you were raised.  If parents are frugal and you did not inherit that gene and as soon as you get out from under their control you go hog wild with the credit cards people will say it’s because parents deprived you too much, when really it’s just the way you are.

    https://psmag.com/economics/being-frugal-may-be-more-genetic-than-learned-31479

    An old article but has some good references.

    #234298 Reply
    Avatar mapplebum 
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    I grew up as the oldest of 6 kids in a working class home. (Dad began to move up in the world when I was in high school.) Mom managed the money with a tight fist.

    My wife and I spend plenty compared to the median US household, but very little relative to my income.

    Click to expand…

    i also interpreted the question as spending less relative to income.  you can change cars every two years and still mentally spend less by buying used and selling before tire change.  you can still clip coupons even when your net worth is 7 million.  you can still buy generic versions or wait for sales or try to maximize value rather than purely enjoyment, ie  this one is perfect but twice the price of that other one that i will enjoy 80% as much.   i was teasing the neurosurgeon who makes well into 7 figures because i ran into him at the grocery store and he had 12 boxes of cereal (every single one in the store) because they were on sale for $1 off.  i asked him what the poor people were going to eat.  he just laughed.

     

    Click to expand…

    As people may have noticed, I run on the frugal side, however a neurosurgeon who has a 7 figure salary who is buying 12 boxes of cereal to save 12 bucks doesn’t have a good grasp of math. I remember I saw an interview with Lebron, I guess he has a reputation of pretty cheap amongst his teammates, and he refuses to pay for the premium version of pandora or spotify. That also shows a very poor grasp of math.

    Click to expand…

    Not the point but I don’t understand paying for a music subscription, especially Pandora. Pandora is seriously the worst. Husband and I do not and will never agree on this but if you have Prime, Amazon Music is more than sufficient. Whole albums! No extra cost! I’m sure everyone will ask my recommendation so here it is. I’ve been listening to complete albums of Kishi Bashi, Son Lux, Laura Mvula (<– all classically trained artists), Ibeyi, Sohn, Anohni, Daughter, London Grammar…all free with an existing Prime membership! Plus there’s playlists AND stations so if you insist on not being able to listen to complete albums / choose who you’re listening to (ahem, Pandora) you can use those features. Big fan.

    Click to expand…

    Yep, I love Spotify. As cheap as I am I could not go back to the free version, Spotify premium is great.

    Click to expand…

    I found out today included in a Spotify subscription is Hulu (with ads). Husband has Spotify (against my better judgment) so that means we’ve been paying for a double Hulu subscription. ::face palm::

    #234376 Reply
    Avatar Kamban 
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    found out today included in a Spotify subscription is Hulu (with ads). Husband has Spotify (against my better judgment) so that means we’ve been paying for a double Hulu subscription. ::face palm:: July 28, 2019 at 10:55 am MST

    Click to expand…

    I am never for all these subscriptions that promise a lot and your mind feels that you are going to get a lot for a little amount of money per month and after a year or more you find out that you have never used even 1/100 of it and yet paid a regular amount each month. Remind you of something – yep, gym membership.

    I never drive more than 10-15 mins a day and hence music or podcast subscriptions are a waste. I don’t listen much to music at home or in the car except once in a while when I fire up the amp and speakers at home. I have had Netflix free with T-mobile for 3 years and don’t think I have used it more than a dozen times. Same when I had Amazon Prime – I never viewed anything from their video selection more than a couple of times. But for people who use it all the time – go for it.

    I am with LeBron – why waste money just because you are a multi millionaire.

     

     

    #234394 Reply
    Liked by hatton1
    fatlittlepig fatlittlepig 
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    found out today included in a Spotify subscription is Hulu (with ads). Husband has Spotify (against my better judgment) so that means we’ve been paying for a double Hulu subscription. ::face palm:: July 28, 2019 at 10:55 am MST

    Click to expand…

    I am never for all these subscriptions that promise a lot and your mind feels that you are going to get a lot for a little amount of money per month and after a year or more you find out that you have never used even 1/100 of it and yet paid a regular amount each month. Remind you of something – yep, gym membership.

    I never drive more than 10-15 mins a day and hence music or podcast subscriptions are a waste. I don’t listen much to music at home or in the car except once in a while when I fire up the amp and speakers at home. I have had Netflix free with T-mobile for 3 years and don’t think I have used it more than a dozen times. Same when I had Amazon Prime – I never viewed anything from their video selection more than a couple of times. But for people who use it all the time – go for it.

    I am with LeBron – why waste money just because you are a multi millionaire.

     

     

    Click to expand…

    if you like music, Spotify is actually worth it.

    if you use the gym membership (>=4 days/week), it’s worth it.

    Just like everything you buy, if you use it, it’s worth it. if you don’t, then…

    (my point with lebron is that if you have the money that he has, 10-15 bucks a month is not even a rounding error, it’s a drop of water in a swimming pool…)

    #234396 Reply
    hatton1 hatton1 
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    I am with Le Bron and Kamban.  I avoid subscription services.  I hate $10 here $19.95 there.  I listen to free FM radio.  I have one netflix (the cheapest version) only.  I reuse to get Hulu since I have Netflix.  I will not pay for HBO.  I do not even have Prime.  I am fine.  I have plenty of entertainment without spending lots per month.

    #234428 Reply
    Liked by Lithium, Kamban, CM
    CM CM 
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    yep, gym membership

    Click to expand…

    Hey now. 🙂 I go almost every day.

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #234432 Reply
    Liked by Kamban
    childay childay 
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    It is very interesting to me- the way our childhood follows us throughout our lives and shows up in different ways.

    Click to expand…

    #obviouslyapsychiatrist

    I tend to think it’s less about “growing up poor” and more about your parents habits / philosophy / relationship to money

    #234445 Reply

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