Many people believe birth order is responsible for their status in life.
I happen to be a firstborn child, which is why I love to remind my younger sister that scientific studies suggest firstborn kids are smarter than their siblings.
Proponents of this train of thought usually note that the overwhelming majority of Nobel Laureates happen to be firstborn children, as were 21 of the first 23 American astronauts sent into space.
Others assert that firstborn kids are more apt to be leaders; for instance, surveys show that they’re more likely than their younger siblings to become CEOs. And the majority of US presidents have been firstborn children too.
So are firstborn kids, on average, really smarter? It’s possible.
Do they tend to make better leaders? Maybe.
Less convincing to me, however, are the psychiatrists who want us to believe that birth order also plays an important role in how we handle our personal finances. According to these behavioral scientists:
- Firstborn children are more likely to keep their finances in order and have higher credit scores
- Middle children are more likely to hide or ignore financial problems
- Last-borns are prone to instant gratification and have trouble saving
- “Only children” are more susceptible to living beyond their means
I know. I don’t buy it either, folks.
If you ask me, these claims are no more credible than the dubious assertions found in a typical financial horoscope. Sorry, Charlie.
Trying to correlate one’s financial behavior to their birth order is preposterous on its face.
In fact, although the press release stated otherwise, their survey shows that there is very little statistical difference between firstborn, middle-born, last-born, and only children when it comes to financial behavior with respect to saving money, investment strategy, and overall financial responsibility.
Firstborn kids don’t have a monopoly on high credit scores, nor are they immune from financial difficulties.
Looking at my two kids, they certainly aren’t following the script. The oldest, Matthew, is a terrible saver and makes no effort to track his income and expenditures. On the other hand, the “baby” of the family, Nina, not only knows how to save and manage her money, but she’s a real entrepreneur with a savvy business sense too.
Let’s face it: Most people in debt up to their eyeballs are in that situation because they lack self-control — not because of their position on the family tree.
Likewise, the majority of folks who successfully manage their money — regardless of their income — do so because they believe in personal responsibility and have good personal finance habits. For example, most all of them:
- Understand the difference between a want and a need
- Dutifully track all of their expenses
- Know the difference between good debt and bad debt
- Always spend less than they earn
And that’s why birth order has no more effect on our financial behavior than the name our parents gave us when we first entered the world does.
We can’t choose our birth order. However, in most cases we can control our financial fate — regardless of where we fall in the family pecking order. We just have to be willing to make the right decisions along the way.
Photo Credit: vtdainfo
Allyn says
I disagree, Len. Birth order has an influence over people, but it certainly isn’t written in stone. I think folks reading articles on these studies are taking the findings as absolutes — that *all* first borns are finanacially responsible and *all* middle kids are ignoring financial responsibilties, etc. They aren’t absolutes, they’re tendencies. A first born has a *tendency* to be more responsible. In the study I read, 53% of the first borns had a higher credit score than their siblings. That isn’t an absolute. It’s just a tendency in that direction. In my family’s case, we fit perfectly into these slots, but that’s certainly no excuse to stay in bad financial habits.
Len Penzo says
I think the main problem with the studies I’ve seen is that they are not very scientific. In fact, they tend to be pretty sloppy. For example, they fail to account for common causes that may be independent of the primary trait being considered (in this case, birth order).
So it negates the entire premise.
The Griper says
Now you are addressing a subject that can go into many directions. One direction would be that Len is presenting an argument of “free will” and Allyn is countering that argument with an argument of “determinism”.
Science by its very nature is a discipline of “determinism” thus must deny “free will” as a cause.
Len Penzo says
Well, I guess I am arguing free will. Although I do believe free will can be biased to some degree based upon other factors (but birth order is certainly not one of them).
PK says
Birth order is sort of like Astrology – a true believer will ignore a whole bunch of writing to label this comment “exactly something a first born would say”.
Whatever. The best way to argue about it is to, in jest, bring up all the supposed benefits of your position to your siblings. They don’t let me get away with it.
Len Penzo says
Well said, Paul.
Hey, did you like how I wasn’t so quick to dismiss birth order as being an indicator of greater intelligence?
You can bet if I wasn’t a first-born child I would have dismissed that notion out of hand too! 😉
Doable Finance says
I don’t buy any of this.
Are the experts suggesting that it’s already written? Not in a million years, I would ever believe it.
Lola says
Being the 2nd of 5 would put me in the middle slot, and I’ve never hidden or ignored any financial difficulties. I used to think my older sister had it together financially, but since she had to sell her house to avoid filing for bankruptcy, I now know that she was living pretty far above her means. My best friend and her husband are both only children, and they are THE most financially responsible people I know. The only person in my life that might fit into one of the slots above is my youngest sister; she definitely has trouble saving. But I blame that more on her having a low income and 4 children than the fact that she was born last. 😉
Len Penzo says
I have lots of anecdotal evidence too that goes against the birth order theory, Lola.
By the way, that “middle child” category always seemed dicey to me — especially where there are lots of siblings. If you are, say, the second oldest of 12 children, that is practically the same as being a first-born child in my book. Am I wrong?
Lola says
Lol… You have a point, Len! Also, my older sister is my half sister, whereas the three younger sisters are full-blood sisters… So technically, I may be the oldest. In which case, maybe the study has merit after all! 😃
Shawanda says
I don’t pay any attention to birth order. My attitude towards money is largely influenced by genetics and my life experiences. Like you said, I have no control over when I was born (or whether to be born at all even), so I don’t wanna waste a second concerning myself with things I can’t control.
Len Penzo says
Interesting; I believe genetics play at least a small role too, Shawanda, in how we deal with money. But that is the subject of another post!
Young Professional Finances says
I don’t think birth order has anything to do with it – I think it’s all about how you are raised and life experiences. I’m the youngest and I’d say I’m much better at keeping track of finances than my older sister.
Melania says
My oldest daughter is a natural leader with an IQ of 120. My youngest daughter is a free spirit with an IQ of 132. Go figure.
Oscar says
“Only a Sith deals in absolutes”
– Obi Wan Kenobi
Dr Dean says
I think we should ask the Magic 8 Ball if birth order counts….
Len Penzo says
Good idea, Dr. Dean! (fingers crossed )
Says the Magic 8 Ball: Dont count on it.
Barbara Friedberg says
Everyone is looking for an excuse, or the answer. Either way, the thing that I think is really important are your genetics and second your tenacity. BTW, being a 1st born (like myself 😃 ) doesn’t hurt.
Wayne @ Young Family Finance says
I think, for the most part, no one is locked into a destiny by birth order. However, I think that there is some truth to the birth order thing.
Think of a family with two children. Child number one will probably get both parent’s undivided attention for three years, where child two is always going to be sharing that attention. If first borns tend to “turn out better” on average, I think there is definitely a good explanation.
Len Penzo says
Well, Wayne, I will agree that first-born babies tend to get better treatment than their younger sibs. For example, with the first baby, most parents will sterilize any pacifier or baby toy that falls on the floor. Then, for the second kid, they usually just rinse it off. And by the time the third child rolls around, they just pick the darn thing up, blow off any visible specs and then pop it back in Junior’s mouth!
Come on, folks, you know it’s true!
DemosCat says
Well that’s a laugh. Our family turns this on its head. My older sister (first born) is the least financially responsible. If anything, she behaves as if she were an “only child” or “last-born”. She’s certainly not stupid — she’s a member of Mensa — but given that her motivation for joining Mensa was pure snob appeal, that gave me plenty of motive to stay away.
Both myself (middle) and younger sister (last born) have always been good with money, and I’d say out of all of us, my younger sister tends to be the best organized and has always been a high achiever.
Which goes to show behavior is not exactly a hard science. If Astrology can be said to have lead to Astronomy, and Alchemy to Chemistry, then I’m inclined to think our understanding of behavior is still struggling at a semi-Alchemy level. A full understanding of human behavior might be possible, but a much better understanding of how the brain functions may turn out to be a prerequisite.
wombat says
The astronauts example is a furphy. I’m old enough to remember that NASA only chose first borns or only children.
Len Penzo says
First off, Wombat, thanks for teaching me a new word! I had no idea what a furphy was!
I’m curious, though; why would NASA purposely exclude candidates other than first-borns or only children? That doesn’t make sense to me.
I did find on NASA’s own website verification that the “eldest son” phenomenon extended to the Apollo program as well. Of the 29 Apollo astronauts:
22 were first-born (6 of those were only children)
5 were not the oldest, but were first-born sons
2 had older brothers
Interesting huh?
Here is the link:
http://history.nasa.gov/SP-350/ch-8-5.html
Kelly says
Birth order related to one’s financial behavior? Hogwash!
I’m the youngest child in my family and I am the only responsible one of the whole bunch. My older brother has had a house repossessed after a couple of cash-out refis where he used the money to go on vacations and buy expensive cars. My sister can’t save a penny to save her life.
You’re right. It’s all about the choices we make.
Paul N says
I’m with Kelly.
Youngest and most responsible. My older (supposedly smarter brother – trade : Insurance Actuary) is now living in his car. This after years of + $100K salaries but finding ways to spend $130 K at the same time. My Mother (Accountant) burns through her retirement savings like it was her hobby.
Me otherwise always known as “the bad one” who made the least $ value yearly salary. No debts, house/cars paid/ good nest egg.
I have a lot of trouble feeling sorry for any person related or not who at any time of their life had a good income – but like i’m finding often in life – has no concept of money and saves nothing for the future.
Studies are for the most part are biased with manipulated data.
Guillermo Vargas Pizarro says
I think that the birth order has not anything to do with it. I think that people develop different attitudes according to life experiences. In my case I am the middle one, trust me I have more success than my brothers.
pennywise says
I tend to agree with the studies that show that birth order can have an effect on intelligence and possibly leadership qualities. Especially if children are born closely together i.e. within a year or two.
Studies have shown that it takes some time for a mother’s body to recover fully from a birth of a child and the time it takes to nurse, etc. Thus depleting the body of needed resources during pregnancy.
If a second child is born within a close timeframe so that a mother doesn’t fully “recover” from the last child (physically) then the second born has fewer resources to draw on for development.
For example I was born a year and half after my older brother. I am a good 8 inches shorter and 100 pounds lighter. I’ve alway considered him a more gifted leader and naturally intelligent (ie. doesn’t have to work as hard as I do….)
But correlating that with financial habits is a bit of a stretch.
For what it’s worth thats my two pennies.
Cameron Daniels says
I’m not necessarily sure how birth order plays into certain tendencies, but you point out that their financial standing is more a result of their self-control and personal responsibility, which could be a result of birth order itself.
You also mention that it matters just as little as a person’s namesake when entering this world. Some studies have suggested otherwise.
Paula @ Afford Anything says
Hmm. On one hand, I see how birth order can have some impact on your upbringing. First-borns are put into leadership positions (over their siblings) at a young and impressionable age.
But on the other hand, LOTS of events have an impact on a child’s upbringing: neighborhood, school, friends, traumatic events, happy events, culture, etc. Birth order is only one of many formative events.
RD Blakeslee says
I think it does.
I’ve always told my younger siblings that my primogeniture made me smarter that them.
Now they won’t talk to me and I have disinherited them.
JB says
I do not believe birth order determined intelligence, nor does it determine financial astutiness.
I am the oldest of four sons. All four of us have held responsible jobs and all of us have been financially successful.
We were not born into wealth nor were our parents. Mother was a stay at home Mom and Dad was a factory worker who never made more than $11,000 in any one year including overtime.
Dad lost his father at age 10 and was raised by a single parent while Mom quit school as a Sophomore to help support her siblings.
I believe the most important item in my brothers and my success was a set of values instilled in each of us by dedicated parenting.
We had instilled in us the value of earning a dollar as soon as each of us was old enough to do tasks for an allowance.
When each of us got our first job Dad required we pay one-third of our income to Mom for board, put one-third into a savings account and could use the remaining one-third for personal expenses.
I believe that was what led to our success rather than birth order.
John says
I agree completely. Except for one thing. There is no such thing as good debt. 😃
All the best.
John