Birth Order and Finance

Is it the latest fad or does birth order actually affect a person’s finances?  Mr. Kinney, a financial adviser at Derrick Kinney & Associates (Arlington, Texas) believes so.  He says that birth order may affect someone’s relationship with money and how dexterous they are at managing their credit score.  A look at how birth order works will provide a type of guide as to watch out for next time a financial decision is reached.


Raising the first child, parents tend to want to do things ‘the right way’.  It is with the firstborn that parents read a lot about the best ways to bring up a child and also set high expectations of the child’s outcome.  It is no wonder then that these adults exhibit great responsibility in their lives and in their finances.  They are the ones who tend to keep their income and expenses in order and consequently have exceptional credit.  Having been driven by the parents during childhood to succeed, however, these people may set financial goals too high to reach stressing themselves unnecessarily.  Focusing on realistic short-term goals will prove less stressful as more beneficial.

Middle Children:

By the time the second child arrives, parents are better apt at raising a child.  They are inclined not to take so much painstaking care into raising him/her; more or less this child grows up on its own running behind its older sibling.  Although they are seen as the weaker (being younger) of the two for a while, when the third child comes along they are on their own once more.  It is at this point that this child acquires the ‘I can do it all on my own’ sense of being. These are the people who seek to bring about balance in all aspects of their lives. They tend to be problem solvers who cannot see their own needs, especially financial ones. They neither complain about nor actually take care of their financial problems. A word of advice to these quiet peacemakers: try not to hide financial worries, seek help whether it is within the family or from a professional.  Everyone needs a helping hand once in a while. It does not make a person incompetent, but allowing such problems to linger can make someone irresponsible.

The Youngest Children:

In the eyes of parents, the youngest child is always just that-too young. And if these people have been treated this way all their lives, it is natural that they behave similarly with their adult responsibilities.  What this actually means is that these adults may not take finances seriously and tend to choose spending over saving. It may even be the cause of friction in their intimate relationships.  They may not realize that although mom and dad are still at their side to help in case of a mishap, the time has come for their money handling to grow as they have. To save much disappointment and hardship, a wonderful idea would be to finally act their age and take charge of their lives.  Next time the aspiration takes over to splurge, instead purge the urge.

Only Children:

Only children much like firstborns, mature quickly in the sense of responsibility. They pay their bills on time and have good credit scores.  However, constantly needing to be approved by others (usually older associates, supervisors, etc.) they may spend more time proving their economic status by spending thoughtlessly than within their means. It goes without saying that although everyone seeks approval, it is unethical to be liked for one’s spending ways. These adults should relax and reflect on their assets, and who they are trying to impress. Most likely, people are more impressed by the personality or abilities a person has than the money they fritter.  So next time, an idea would be to put money to work towards impressing his/her own needs whether they be long-term (a well paying pension plan) or short-term (a comfortable home).

Of course, many different factors are responsible for the development of the final persona of an individual.  However, taking into account the above information may help someone put finances into a better perspective so that decisions may be made to enhance his/her way of life. 


The Influence of Birth Order on Financial Risk Tolerance