People Who Spend Money Faster Than They Can Make It Usually Learned 8 Money Habits As Kids
Volodymyr TVERDOKHLIB | Shutterstock Kids pick up on habits and form attitudes about money early in their lives, according to a University of Michigan study.
Even when their parents don't realize they're paying attention after making an impulsive purchase or justifying irresponsible shopping decisions, these behaviors are shaping their mindset around finances. That's why people who spend money faster than they can make it often learn certain money habits directly from their parents.
Money habits people who spend money faster than they make it learned as children
1. Spending for comfort and convenience
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If someone relies on retail therapy for comfort, it's probably because they don't know how to process or regulate their emotions. They need the stimulation and entertainment of spending to avoid their fear of their own feelings. Unfortunately, that's something their kids will pick up on.
It's also an escape route for managing discomfort. For children, being taught to rely on spending for convenience instead of learning to sit with and work through discomfort is detrimental, not just financially, but also emotionally.
2. Buying something as a reward
When kids learn that they should treat themselves by buying something or getting a little treat, they start spending money they probably shouldn't as adults.
Outside of finances, parents who focus on the result and praise the outcome over the process also sabotage their kids' work ethic. These kids are more likely to boast about goals they haven't accomplished or take the easy way out, because they weren't taught resilience and empowerment to enjoy the journey first.
3. Using 'deservingness' as an excuse to buy something
When someone justifies spending by saying "I deserve it," their self-worth and comfort are tied up in the wrong things. Just because you deserve something doesn't mean it's healthy or responsible to spend money on it, especially if you're already struggling with bills or falling behind financially.
When you grow up with parents who associate spending with deservingness, it's difficult to unwind that mentality, even when you don't have the money to be rewarding yourself constantly for doing something good.
4. Putting fun expenses before bills
If kids watched their parents spend a ton and make impulsive purchases right when they got paid, they were taught to anticipate that excitement. As adults, they probably do the same, though they likely experience the same anxiety that bill deadlines cultivated.
They always find some way to justify spending when the money first hits their account, with the "I'll figure it out" sentiment, even if they're putting their future self in jeopardy.
5. Making small impulse purchases
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Money insecurity at home can often affect kids' self-esteem and anxiety levels. Unfortunately, in adulthood, it's those same mental health struggles that put people at risk for impulsivity when it comes to their finances.
They buy things they don't need in grocery store check-out lines. They pick up people's dinner tab after getting paid. They let spontaneity win, because that's the self-discipline their parents modeled, or rather, didn't model, growing up.
6. Shopping to cure boredom
Kids are supposed to feel and experience boredom growing up. They're supposed to manage discomfort. They're supposed to know what it's like to not get everything they want and to embrace not having constant stimulation so they can grow into their best emotional selves.
But when parents cope with boredom by spending and shopping, their kids pick up on that. Not only are they wired to seek out spending as a form of stimulation, but they spend money they don't have to avoid boredom.
7. Putting everything on a credit card
While it might have been exciting at some points to go on trips or get every toy they asked for, if their parents were building debt, it probably turned into something more insidious. As a 2016 study shows, the greater a parent's debt, the poorer the socio-emotional well-being of their children.
On top of that, they probably learned less about the value of a dollar by watching their parents spend impulsively with money they didn't have. To them, using their debt was essentially using free money.
Now, as adults, they're probably struggling under the weight of late fees on "buy now, pay later" platforms and minimum interest payments on credit cards.
8. Buying something just because it's on sale
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Many people find all sorts of excuses for buying things they don't need. For some, it's a reward for going through a hard week. For others, it's because it's on sale. They think they're saving money despite it being something they typically would never buy.
Their kids learn these lessons about money, even if they're just walking beside their parents in the grocery store. They start to justify their own purchases with this mentality, often spending money they don't have.
Zayda Slabbekoorn is a senior editorial strategist with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
