Whether or not birth order affects the makeup of personality and behavioral traits is an extensively-researched topic with convincing arguments on both sides.
Regardless of which side you come down on, you can probably identify with at least a few of the stereotypes associated with your birth order.
While most studies have focused on the role that birth order plays in personality, recent research conducted by the Journal of Financial Therapy suggests that your birth order can also affect financial decision making. Here’s what your birth order says about your finances.
Related: Here’s Your Plan of Attack for This Year’s Savings Goals
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The oldest child
The oldest child in the family tends to be mature, confident and, more often than not, a perfectionist. As a result of the responsibilities and expectations placed on them by parents at an early age, older siblings are well organized and generally in control of their lives.
According to clinical psychologist Dr. Mark Harrold in his Irish Times article, firstborn children enjoy more attention from doting parents. Not only do these individuals connect more with their parents, but they also generally earn better grades and pursue more conservative, lucrative careers such as in law, accounting, banking and information technology.
The personality traits associated with firstborn kids might also translate into good spending habits, as these children tend to be diligent about managing money and more financially stable overall.
“I certainly see different ways in which birth order seems to affect behavior with money,” said Jerry Linebaugh, II, founder and CEO of JLine Financial. Linebaugh went on to add, “Firstborns handle money differently. I see a pattern in a lot of people that I know. They are viciously protective of making sure bills are paid on time and living within their means, which includes building savings and investments.”
The oldest: How to overcome your natural inclination
The innate desire to come first in everything apparently doesn’t end at birth, as many older siblings are achievement oriented and thrive in leadership positions. As the firstborn child of your family, you might find that there are a number of financial priorities pulling you in different directions.
For example, you might be chasing 20 percent annual returns in your retirement account while simultaneously building a six-month emergency fund and contributing toward college savings accounts for your kids.
Unfortunately, this internal drive for perfection can cause you to set unrealistic goals that can sabotage even the best-laid financial plans. If this sounds like you, remember that pursuing too many financial priorities at once can lead to unnecessary levels of stress.
Play to your strength in organization and make a list prioritizing both your long- and short-term goals. Use this list as a roadmap and take small steps each month toward achieving objectives.
The middle child
While the oldest child is often given the lion’s share of attention from parents, and the youngest can typically do no wrong, the middle child might feel lost in the shuffle. Experts refer to this condition as “middle child syndrome.”
According to marriage and family therapist Lisa Bahar, “Middle children may fly under the radar screen at times and are more flexible, more apt to be open, take the centered approach, and sometimes (are) more balanced with money.”
Middle children are resigned to the fact that someone is always both ahead of and behind them in terms of familial structure. As a result, they are often found to be naturally gifted problem solvers with excellent negotiation skills. And when it comes to financial habits, the middle child is a born saver, with nearly 65 percent of the group contributing money to their savings accounts each month, according to Business News Daily.
See the rest of the story at Business Insider