Growing Up Poor: 3 Expensive Things I Learned Are Worth the Money

The U.S. Census Bureau estimates that 37.9 million people live at or below the poverty line. The poverty line starts at $14,580 for the first member of your household and then increases by $5,140 per person.

For example, a family of four is considered impoverished if they earn $30,000 or less. It gets worse when you learn that statistically if you are born into poverty, you’ll most likely not build wealth and live in poverty as an adult. Growing up in poverty can leave an ever-lasting effect, even if you can escape.

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Here are three expensive things worth the money when you grow up poor :

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1. Healthcare

“Growing up poor made me hypervigilant about managing every penny I spent for a long time,” Danielle Stepien said.

Watching her mother and aunt both lose their jobs during the Great Recession led to her family struggling financially. One of the benefits that is easily lost when one loses their job is access to healthcare. But even in such a situation, you can take control of your healthcare.

You can now sign up for plans through healthcare.gov , an affordable marketplace that can help you grab a plan at a steep discount by providing a healthcare stipend. Basic healthcare coverage can prevent financial problems later.

Stepien advises to always ask for an itemized bill and advocate for yourself.

2. Interest Rates

“I didn’t know how to negotiate better rates and shop around when it came to financing a car, personal loan, or anything else I could have benefited from,” Stepien mentions.

An interest rate can make or break you when it comes to financing. For example, many homeowners currently refuse to sell their homes because they cannot guarantee a similar rate if they choose to do so.

The average home price in 2024 is currently $360,681 . If this home were purchased with a seven percent interest rate and $50,000 down, the monthly mortgage payment would be $2,067 . If you bought the same house under the same circumstances except for financing at a 3.5 percent interest rate, you’d be paying $1,395 instead.

3. Investing in Yourself

Growing up, her parents repeatedly maxed out credit cards to “keep up with the Jones” and could never figure out how to pay them off efficiently. As a result, she kept a limited balance on her credit cards and paid them off monthly to avoid the same mistakes.

Debt felt dirty, and she feared any kind would hold her back like it did with her parents. But when it came time to start her own company, she couldn’t avoid financing part of it.

“I had a VERY hard time carrying ANY balance on a credit card. It seemed wrong,” she admits. “I had to redefine what debt COULD mean to a good relationship with finances, which I am proud to say I successfully did.” By redefining her relationship with her finances through hard work and time, she was able to grow her company successfully.

Growing up poor can teach you many money lessons without you realizing it. But it’s important to know that your demographics do not determine your destiny and that you have anything you want to own, even if you didn’t grow up with it.

This article originally appeared on GOBankingRates.com : Growing Up Poor: 3 Expensive Things I Learned Are Worth the Money