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.
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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.
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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.
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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.