4/18/2012 5:33 PM ET|
How birth order affects finances
Baby of the family
Bacchus says babies of the family are very social and tend to prioritize dinners out with friends, latte runs and trips to the mall over budgets. This sometimes leaves little or no money to pay bills.
It's tough for those youngest in the birth order to spot these activities, which are the first ones to cut if you're in a budget crisis, says Kinney. "A social youngest child will have problems learning to value saving long term over the instant gratification of a social event," he says.
"Parents often dote on the youngest children, so they're conditioned to rely on others. They get into financial trouble because they can't handle responsibility and may even believe someone will fix their financial problems if their parents have paid bills for them," says Bacchus.
Temper your traits: Look for ways to spend less while still being social. Go for coffee instead of dinner, or rent a movie with friends instead of having dinner and a movie out.
"Start a 'social fund,'" says Rachele Cawaring Bouchand, a certified financial planner and the director of financial planning at Clark Nuber P.S., a CPA firm in Bellevue, Wash. That way it'll be easy to see how much money you spend on social outings.
Only children and firstborns tend to share most birth-order-related traits. "Like firstborns, only children are perfectionists who are generally very responsible," says Bacchus.
But in addition to paying bills on time and generally having a good (or great) credit score, Bacchus says only children also tend to seek approval from superiors and people older than they are.
"This could lead to trying to impress people at all costs, even if it means living beyond your means," says Dlugozima.
Temper your traits: Bacchus says it's easy to get caught up in all that impressing, especially if it seems to be working. After all, who doesn't like to be liked?
Bacchus says only children should slow down and evaluate things. In other words, take a breath.
"Look at your relationship with the person you're trying to impress," Bacchus says. "If it's a one-way street where you're always shelling out cash just to impress and you're not being equally wooed, it's time to turn your attention elsewhere. Put your money toward a reward with long-term benefits like a paid-off credit card or padded nest egg."
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Not even close to the truth. I am the Youngest of 5 and I am the only one who is financially stable. It's not about birth order, it's about choices. No matter what order you were born, you chose you financial fate.
This is 100% wrong in regard to the family I grew up in, and with my own children.
It all actually works in the opposite.
who writes this crap...rates up there with the dummest artical i have wasted time reading.
BUNK. My older sister is not any better at managing money than me or the other two siblings in our family. We all learned from our parents to be responsible and pay our bills on time. AND to save. Pointless article.
I'm the middle child. We are the ones no one pays any attention to at all. I think of myself as the surviver. I'm always employed, never in trouble , own a home, "the only one of the kids who does". But it is never as important as the baby's issues, and the oldests need to control everyone. I like just floating along in my world.
I definitely agree with the other posts. This article has it wrong. This article doesn't represent me and my siblings, nor does it represent any of my friends and their siblings.
Seriously, where does MSN find these writers? And how minimal do their qualifications have to be?
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