Does Being a Middle Child Affect Your Financial Decisions?

Two women in a meeting

Have you ever wondered how your relationship with your siblings might be affecting your financial decisions? There has been a lot of psychological research on middle children and how birth order in general can have a long-term effect on your personality. Of course blanket statements about large groups of people should always come with a grain of salt, but middle children tend to be relaxed, social and excellent peace makers.  After being raised as the go-between for their siblings, many adopt the personality of a creative people pleaser.

While these traits may have somewhat obvious effects in our personal lives, how do middle children fair in the world of money? Do they do as well as their siblings? Here are some of the common financial traits of middle children.

  • The middle child is the most generous: The stereotypical middle child aims to please and doesn’t stress the small stuff. This can often lead to generousness, which is a double-edged sword. According to CareerBuilder, if you are a middle child, you are more likely to work in a career where you care for others. While many caregiver careers are not known for being a path to quick riches, these can also be some of the most rewarding careers. Middle children are also the most likely family member to get asked for money. This isn’t necessarily a bad thing, unless it becomes a habit.
  • Middle children are good at finding compromise: Middle children are known for being the peacemakers, the sibling who can create harmony between the older and younger children. This can be both good and bad. Business leaders always benefit from diplomacy skills, so long as they remember not to be overly eager to compromise. It’s important not to let anyone take you for an easy financial target.
  • Middle children are relaxed: While the laid back attitude of middle children could very well be a coveted route to personal happiness, it isn’t always a good thing for money management. Middle children may be more likely to take a passive approach to their money, which can be a problem for growing wealth.
  • Middle children are aggressive investors:

The relaxed attitude of middle children can have a financial upside, however. While some might grow indifferent, others harness that same attitude into an aggressive investment mindset. Middle children are more likely than their siblings to have a more stock-heavy investment portfolio. This suggests that middle children are less afraid to go big and take risks. A cool emotional temperament can be good for the volatility of the market.

Of course, not everyone fits into these rules, but middle children tend to be creative optimists who are good with people. Whether or not you are a middle child yourself, it is always a wise move to take an honest inventory of personal strengths and weaknesses, in order to improve and move forward.

Kevin D. Judd is Washington D.C.  bankruptcy lawyer. He fights to provide his clients with financial freedom and success.



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