She Strengthens

The Unseen Effects of Poverty on Our Relationship with Money

Growing up, I never realized the profound impact that poverty would have on my financial mindset. When my dad was diagnosed with a mental illness, our family’s financial stability was turned upside down. My mom, who had been a stay-at-home parent, returned to work as a server, and my dad’s disability benefits became our primary source of income. As a child, I didn’t fully comprehend the severity of our situation, but as I grew older, I became acutely aware of the powerlessness that came with living on a limited income.

The Fear of Financial Insecurity

Living with financial insecurity can be overwhelming, and it affects every aspect of life. The constant stress of not knowing when the next paycheck will come or how to make ends meet can be debilitating. For me, this experience instilled a deep-seated fear of financial insecurity, which has taken years to overcome.

The Consequences of Poverty on Spending Habits

One of the most significant ways that poverty has influenced my relationship with money is in my spending habits. I often find myself oscillating between extreme frugality and excessive spending. I might go to great lengths to save a few dollars, only to splurge on something extravagant without hesitation. This dichotomy is a result of the scarcity mindset that developed during my childhood.

A Distorted View of Wealth

Growing up in poverty also warped my perception of wealth. I used to think that a family with two incomes and a relatively new car was “rich.” Now, I realize that this is a relatively low bar. This skewed perspective still affects my thinking, and I often find myself marveling at the luxuries that others take for granted.

Everyday Items Become Luxury Goods

For me, everyday items like fresh produce, a fully stocked pantry, and extra money set aside for a vacation feel like luxury goods. It’s as if I’m still trying to make up for the lack of security I experienced during my childhood.

A Twisted Sense of Financial Emergency

Perhaps most surprisingly, my experience with poverty has distorted my understanding of financial emergencies. Because I’ve already lived through a worst-case scenario, I sometimes underestimate the importance of having a dedicated emergency fund. This mentality is risky and unnecessary, and I’m fortunate that I haven’t faced a major financial crisis without a safety net.

Breaking Free from Poverty’s Grip

Despite the challenges that poverty has presented, I’ve been fortunate to have access to resources like public healthcare, subsidized education, and child benefits. These advantages have helped me build a more stable financial foundation. Today, my income is roughly double what my family of four survived on during my childhood. While I’m proud of my accomplishments, I recognize that no one needs to experience poverty to develop grit, perspective, or empathy.

Taking Control of My Finances

Money is no longer something to be feared; instead, it’s a tool to be used wisely. I’ve learned to prioritize saving and investing, and I continue to top up my emergency fund and disaster pantry. By acknowledging the ways in which poverty has shaped my relationship with money, I’m taking steps to break free from its grip and build a more secure financial future.