3 Money Lessons From Growing Up Poor That the Wealthy Never Learn
“We’re all shaped by our experience regardless of our backgrounds,” said Rachel Sykes, a psychotherapist focused on providing financial therapy to her clients. With an MBA and CFA designation as well as 25 years in the investment field, she has a unique perspective on her clients’ struggles.
One of her observations is that those who come from a particularly disadvantaged background often see real consequences of not having financial resources available to them.
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“When folks see their parents or their family struggle, it can really imprint on a person in their early years,” she said. "Sometimes people repeat those same behaviors, but sometimes they see it and strive to overcome it or do the opposite.”
As a result, they often come away with lessons that those who grow up wealthy may not learn as early or as quickly.
To get a better understanding of the lessons that people can learn from growing up poor that their wealthier counterparts may not, MoneyLion talked to Kevin Ladd, COO of Scholarships.com. He shared his experience growing up in a small town in Maine and what it taught him.
Obstacles and Blocks Are Real but May Not Be Permanent
According to Sykes, people who grew up with fewer resources “are driven to pursue their goals in a way that other people might not have the energy for or the willingness to follow through.”
Ladd knows this first-hand. His dad worked in a warehouse and his mom worked as a clerk and substitute teacher for much of his childhood, and he grew up in a lower-class household. He learned early on that his parents wouldn't be able to send him to a specialized sports camps where his peers were getting more coaching.
“If I wanted to improve as a sport like soccer, which I played as an adolescent, I knew I would have to take the initiative and push myself to be better," Ladd shared.
While this obstacle was real, he also realized that it wasn’t permanent. He could put in the time by skipping Brady Bunch reruns to practice with a buddy or work on his skills at the local public field.
Self-Reliance Is an Important Skill
When families don’t have the resources to provide for necessities or even if they can’t provide for someone’s wants when they’re growing up, those people often learn to rely on themselves.
Ladd realized he liked the nicer things that kids had at school but knew his parents, who were providing for their three kids, weren’t able to afford it. So, he took the initiative and got a paper route at age 12.
“I was from a blue collar background,” he said, “So that meant I needed to figure out how to go and earn money of my own.”
Ladd said he would get up at 5:30 a.m., “including through the brutal Maine winters” to run his route.
“I literally saved my paper route money for an entire summer before I entered high school to buy a Schwinn World Sport," according to him.
Sykes cites this self-reliance is ultimately one of the best lessons that people who come from a low-income background can learn.
“When you’re coming from a place with limited resources,” she explained, "You realize that it’s up to you, you have to figure out your own problems.”
At the end of the day, Sykes said, “The person who’s really motivated to help you, is you.”
Resourcefulness and Determination Take You Far
Ladd says that he’s grateful that he grew up in the economic situation that he did.
“I learned some independence early on, along with initiative,” he said. “I discovered it takes determination and some discipline to achieve most things. I don't think that applies just to the ones who grow up without money, but I do think it’s an earlier lesson, which actually can be an advantage people don’t often realize or talk about.”
Ladd went on to co-create Scholarships.com, in part because of his experience searching for scholarships when he was applying to college.
“We had a few enormous books that we could use to research scholarships back then,” he said. “So, giving young students as well as graduate school students and even adult learners the ability to get matched to scholarships and potentially lift that financial burden was something I understood.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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