For most of my life, I was caught in a cycle of financial instability.

You might know the drill:

– Consistent worry about money

– A lack of resources

– Deprivation

– And a future that seemed anything but bright.

This experience wasn’t just stressful in the moment – it shaped me in ways I didn’t fully understand until much later in life. It was only after delving into psychology that I began to see the patterns.

In this article, I’m going to share with you the 10 traits that people, like me, who grew up in financially unstable households tend to develop later in life – all based on psychological research.

Here’s what I learned. Let’s dive in.

1. Resourcefulness

Growing up in a financially unstable household, you quickly learn to make do with what you have. This kind of upbringing breeds a particular kind of resourcefulness that’s hard to replicate.

It’s like being thrown into the deep end of the pool – you either sink or you swim. And for those of us who grew up without a lot, we learned to swim. We learned how to stretch a dollar, how to make a meal out of seemingly nothing, and how to fix things instead of replacing them.

In my case, it was learning how to repair my own bicycle instead of asking for a new one. It was understanding that money doesn’t grow on trees and that if I wanted something, I needed to figure out a way to get it myself.

According to psychology, this resourcefulness isn’t just about practical skills. It also translates into an ability to think creatively and solve problems – traits that are highly valuable in adulthood.

Growing up in financial instability isn’t easy by any means, but the resourcefulness it instills is a silver lining that can serve you well throughout life.

2. Empathy

Another trait that I, and many others who grew up in financially unstable homes, seem to develop is a heightened sense of empathy.

I remember a time when I was about 10 years old. There was a boy in my class who always wore the same clothes and never had any lunch. I recognized the signs because that was often me. Instead of joining others who made fun of him, I found myself sharing my meager lunch and defending him to others.

This empathy, according to psychologists, is often borne out of shared experiences and understanding what it feels like to struggle.

In the words of renowned psychologist Carl Rogers: “When someone really hears you without passing judgement on you, without trying to take responsibility for you, without trying to mold you, it feels damn good!”

Growing up with financial struggles makes us more attuned to the hardships of others and more likely to extend compassion and understanding. It’s as if our experiences have given us a lens through which we can better understand the struggles of those around us.

3. Appreciation for small things

When you grow up without a lot, you learn to find joy in the little things. For me, this was a crucial lesson that has shaped my adult life.

I remember a particular Christmas when I was a child. Money was especially tight that year, so there were no presents under the tree. Instead, we spent the day as a family, playing board games and sharing stories. It wasn’t extravagant, but it was one of the happiest Christmases I can remember.

This experience taught me to appreciate the small, intangible things in life – moments of connection, shared laughter, and the joy of simply being together.

Growing up in a financially unstable home cultivates a deep appreciation for these small pleasures. When money is scarce, you quickly learn that the best things in life truly are free. And this understanding can lead to a richer, more fulfilling life in adulthood.

4. Resilience

One thing I’ve noticed about those of us who grew up in financially unstable households is our remarkable resilience.

I recall a time when my parents couldn’t afford my school fees. I was devastated and thought of quitting school. But instead, I took up part-time jobs and applied for scholarships. It was tough, but I made it through.

Studies have shown that difficult experiences in childhood can actually enhance resilience in adulthood. According to a research study conducted by the University of Minnesota, children who experienced hardship early in life developed better problem-solving skills and were more likely to overcome adversity later on.

They found that these individuals are more likely to view challenges as opportunities for growth rather than insurmountable obstacles. This resilience, born out of necessity, can turn into one of our greatest strengths.

(Study source: Masten, A. S. (2014). Global Perspectives on Resilience in Children and Youth. Child Development, 85(1), 6–20.)

5. Independence

Growing up in a financially unstable household often necessitates becoming independent at a young age.

I remember, as a teenager, taking on part-time jobs to help out with bills at home. I learned to manage my time, balance schoolwork, and handle money from an early age.

This early independence can be challenging, but it also fosters self-reliance and responsibility. It’s a crash course in life skills that some people don’t learn until much later in life.

These experiences can be tough, but they often result in us growing into adults who are capable of standing on our own two feet, managing our lives effectively, and navigating challenges with confidence.

6. Adaptability

Financial instability often means dealing with unpredictable circumstances. For those of us who grew up in such environments, we learned to be adaptable out of sheer necessity.

I recall moving houses several times as a child because my parents couldn’t afford the rent. Each time, I had to adjust to a new neighborhood, new school, and make new friends. It was tough, but it taught me how to adapt to changing situations.

As the famous psychologist Albert Bandura once said, “In order to succeed, people need a sense of self-efficacy, to struggle together with resilience to meet the inevitable obstacles and inequities of life.”

Growing up in a financially unstable household forces us to confront obstacles and inequities head-on. As a result, we often develop a heightened ability to adapt to life’s inevitable changes and challenges.

7. Financial savvy

Ironically, growing up in a financially unstable household can sometimes result in greater financial savvy later in life.

As a kid, I had to learn at a young age how to budget, save, and make strategic spending decisions. While my friends were spending their allowances on toys and treats, I was squirreling away every penny for rainy days.

This might be counterintuitive, but when you’re used to not having a lot of money, you often become better at managing the little that you have. You understand the value of money and the importance of financial planning.

Here’s a practical tip: If you’re looking to improve your financial literacy, start by setting aside a small amount each week in a savings account. Over time, this small habit can make a big difference in your financial stability.

Conclusion

Growing up in a financially unstable household is undeniably tough, but it’s important to remember that our past doesn’t have to define us.

In fact, these experiences often shape us into resourceful, empathetic, and resilient individuals. We learn to appreciate the small things in life, develop a high level of independence, become adaptable to change, and even acquire financial savviness.

So, if you’ve had a similar upbringing and find yourself carrying some of these traits, embrace them. They’re a testament to your strength and ability to overcome adversity.

One piece of advice: Take these traits and use them to your advantage. Channel your resourcefulness into creative problem-solving, your empathy into understanding others, and your resilience into overcoming challenges. You’re stronger than you think, and your past has equipped you with unique skills that can help you navigate the world with grace and grit.