How birth order may determine your financial personality
Conservative saver? Risky investor? Results of a new study suggest that your position in the family line-up may drive your money decisions.
Mon, Apr 09 2012 at 10:26 AM
While studies have long shown the role that birth order plays in a person's personality, new research suggests it also helps shape individuals’ financial makeup.
A study by CouponCabin confirmed birth order theorist Alfred Adler’s beliefs that firstborns are likely to be power-hungry conservatives, highly responsible and organized, as they've been expected to lead by example during their formative years. The data shows that 87 percent of surveyed firstborns consider themselves financially responsible.
While later-borns, including middle children and youngest children, are usually considered to be the most open to new experiences, the survey found that those who were the only child in their family are the biggest risk-takers when it comes to money. The only children surveyed had the highest instance of taking financial risks, such as borrowing for short-term investments or investing in risky ventures. [Americans Most Foolish Financial Mistakes]
"Birth order can be an interesting determiner of personality and behavior, which means that sometimes, financial decisions are affected," said Jackie Warrick, president and chief savings officer at CouponCabin.com. "At the same time, it's important to recognize that birth order is a theory, and that other factors contribute to making money decisions."
In terms of saving money, middle children lead the way, with 65 percent of those surveyed putting money into their savings accounts each month. This research bucks the theory that firstborns are the conservative ones; the data shows they were the least likely to make monthly saving account payments.
Meanwhile, the research also reveals middle children are most likely to be asked for money from a sibling, with nearly half being hit for cash from a brother or sister.
The research was based on surveys of more than 2,200 U.S. adults.
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