What makes you privileged - financially

[IknoIkno]

Name changed.
I know we are in the worst pandemic since World War 2 and all.

I talked to a childhood friend earlier and she said(in a huff) I am financially privileged because I do not have a set budget for day-to-day expenses.

Is there such a thing as financial privilege?
To think it is the go-to defence for those with poor personal finances plans

In so many ways I feel absolutely privileged financially - we don't have a mortgage, our pensions are sorted, we have investments and savings for the kids' university if they go. And both our jobs are secure. But we don't spend money on unnecessary things, we negotiate, we try to get the best deal. I buy all my clothes at Asda or Tesco, might stretch to Next once in a while. I've had the same Fatface handbag for 8 years.

It's all relative isn't it. I think we're rich. Other people probably think we're a bit poor.

But the term 'privilege' has a connotation in this context. It is often used for someone who has family money, which is very different from us, we're both from working class backgrounds.

Thinking about this a bit more - I would say financial privilege is when you have backup should it all go tits up. My siblings and I didn't have that. Our parents would have helped within the limits of what they had - so one sibling went "home" as an adult for 2yrs - but dps couldn't afford to give them money to help with getting back on the housing ladder.

My exh was privileged because he had wealthy parents who would help out their kids, my dc are privileged for the same reason.

I think it's the safety net that confers privilege because you can afford to take risks.

We are very privileged. Both in very safe jobs (one nurse, one police officer). We own our house with about 50% equity. Mortgage payment is not high. Both have pensions. Day to day spending is not an issue, I know that if I spend a lot early on I have to watch it toward to the of the month, but I don’t have to plan for every penny. We have some savings. And if we were ever in dire need we both have parents who would be willing and able to help.

It’s not all rosy. We don’t have as much saved as we’d like. We’re doing a lot of work on the house at the moment and we don’t have enough to cover everything (unless we completely wipe out or savings, which we won’t do as we may need that money for emergencies). It always feels as through there is something needed. But, that’s not me moaning, I know we are very lucky, especially right now with our job security.

Financial privilege is often passed down. So you're set up before you even start. School fees, monetary gifts, house deposits or house bought, driving lessons, first car, inheritance etc

Got none of that.......but wish I had. Everything was a struggle to get head above water, but it was a hell of an incentive to push on to get 'comfortable'.

I think it’s all relative. Compared to some people up thread we are very poor. But, in other aspects we are privileged: large house, enough equity in it to sell up and buy a flat right out if life goes tits up, don’t need to worry about having enough to buy food and clothes when needed.

I think many people are disingenuous when they say that it’s just good financial planning to be financially secure. Most (not all) people who have money started out with advantages; secure home / family in childhood, parents who supported (emotionally and / or financially) through uni, inheritances, deposits, driving lessons.

@timeisnotaline got it right that it costs more to be poor. Credit is much more expensive, and the mental stress impacts your ability to make good choices

I think it's the safety net that confers privilege because you can afford to take risks

Absolutely.

I am immensely financially privileged. Not rich though, because that's not the same thing. Not able to spend randomly and freely with absolutely no thought for the cost, because that's not the same thing either.

For example, I still have the occasional sharp intake of breath at the supermarket checkout and still often think, jesus that's expensive. The difference is that I've forgotten about it by the time I've loaded the bags into the back of the car. I still hold off on buying that new warm winter sweater because it's too pricey - the difference is that if I did buy it I would have forgotten about the cost by the time it arrived. I cringe at the cost of taking the cat to the vet (even with pet insurance!) but I know it's not really going to make any difference to my finances a week down the line.

That's privilege. It's the ability to spend without it significantly impacting on your situation. It is having a safety net always there - whether that's a secure job or savings in the bank, a mortgage-free home or a wealthy and accommodating family to help you out.

I know that it would take a hell of a lot for me to end up on the bones of my arse. That is immense privilege and I can honestly say that not a day goes by when I don't think about it and feel grateful for it.

Privilege is always going to be relative and probably isn’t about the amount of money you got but the non-monetary (or non ‘worked for monetary) things that Put you in the position you are today.

For example - My privilege in regards to being a homeowner could be construed as being able to live at home for a few quid a week until I’d saved up my half of a deposit for our first home. But DH’s came from an inheritance from losing his father. Monetarily privileged yes, but his father was an abusive alcoholic and he had a rough start in life because of that And did have to leave home at 19, so swings and roundabouts TBH.

In comparison to our peers, many still do not own their own homes because they moved out at a young age - however in 100% of these cases this was a choice. So am I privileged because I could live at home until I was 26? Or was it a choice I made because I knew if I was renting I wouldn’t be able to save? Compared to my peers it was a choice, compared to DH it was a privilege. If that makes sense?

As a PP says, compared to those living in countries where clean water isn’t available. We are all privileged in this country. Even the poorest of us can access Clean water and healthcare when we need it.

You sound like one of the people that think the Government shouldn't he providing free meals for kids in the holidays. You really don't have a clue about how some people have to live.

@Zenithbear

Financial privilege is often passed down. So you're set up before you even start. School fees, monetary gifts, house deposits or house bought, driving lessons, first car, inheritance etc. My parents had massive monetary help and a large inheritance but chose to spend it not to pass it on, however I and my siblings inherited from another relative, our dc have also inherited. They all own their own homes. They all have jobs but would be a long way from home owners without this help. I know several people who have had houses or huge amounts of money given to them.

Neither me or DH had any of this but I would say that we have worked our way into a position of some financial privilege. I think we have achieved it through hard work and financial planning.

I think we are in a privileged position because:
We can afford to overpay our mortgage every month.
If one of us loses our jobs, we can still afford the mortgage, bills, food and cars.
I don’t need to budget when buying food. I have a rough amount that I try to stick to but it doesn’t matter if I don’t.
If an appliance breaks in the house, we have enough money in the bank to replace it.
We have investments and savings.

We are not rich, and similar to a PP, I don’t feel comfortable just spending money without thinking about it. I’m always willing to see if the item I want will be in a sale or available with a discount code! I too will sometimes think at the supermarket ‘goodness that cost a lot’ but again will have forgotten about it by the time I’m home. I also don’t take the privilege that I feel I have for granted. I certainly didn’t grow up with this and I know what it’s like to go without. I think that’s what encouraged me to ensure that I was financially secure as an adult. It pained me as an older teenager/young adult to see how much is upset my parents that they couldn’t help with the financial costs of me learning to drive, going to uni, buying a house, getting married etc. It bothered them a lot more than it bothered me!!!

You sound like one of the people that think the Government shouldn't he providing free meals for kids in the holidays

@LagunaBubbles I actually think it should

I am financially privileged. When I was in a refuge, I picked up a booklet that says you can afford to leave. Yes, I have no real money to spend, living on benefits living in social housing with dd, but I feel privileged that the government helped me to get out.

Is that what you meant @IknoIkno ?

I also fully agree that my financial privilege has come from other things such as:

• being born into a family that I knew I could rely on
• being brought up by parents who encouraged me to go to university
• being born at a time when I could do that for free, effectively
• being white, middle-class and educated which meant my face 'fitted' at job interviews
• being healthy enough to work full-time all my life
• having children who were also healthy to allow me to work full-time

None of this stuff is down to my hard work, natural ability or financial planning savvy. It is simply my good fortune and therefore also my privilege.

MrsR87

I agree that you can get there yourself but it's just easier and quicker if it's handed to you as part of your life. Probably not as appreciated.
It wasn't for me btw, I had my inheritance when I was already financially established all by myself. I worked for years to get where I wanted to be. My dc and dps dc all had monetary gifts and inheritance by early to mid 20s. We're lucky they all used it pretty wisely.

OP - this to the comment way back at the beginning of the thread about everyone can be financially stable etc

You are only one day away from being on the other side.
9 years ago I had a great job, lovely home and not a care in the world about finances. I worked long hours and it paid off.
7 years ago I gave birth to an incredible little human who I life with all my heart but my life changed in an instance - she got sick, my relationship broke down. I had to quit my job, lose my home and be my child’s side for 26 months in hospital, could not claim carers Or DLA as she was in hospital and not at home.
I went from a high earning wage to, 500 pound a month to live is whilst in hospital which is not cheap after getting in to loads of debt

4 years down the mine from that I was back in work managing hours and dc care who is still battling some big things. Working less hours meaning less money but was doing better then bang covid hit - my job is not one you are furloughed from but also can not work from home. Dc put in shielding I had to take unpaid leave for 4 months followed by going back to work briefly for dc to now be taken out of school again.
Things happen in life that are out of our control.

You are making a sweeping statement here trying apply something to everyone and it's much more nuanced than that. You're either being a bit goady or a bit naive.

I do have friends who I know could be in a much more secure financial position if they'd made better choices (e.g. they say they can never afford to save up for a house deposit but they buy numerous expensive handbags and shoes and have a brand new car and the latest iPhone) but these people already have a degree of privilege because they are able to choose what to spend their money on which means they do have at least some disposable income.

There's a (significant) proportion of the population who are just trying to get through every day and every week, hand to mouth. No amount of 'good financial planning' would make things better for them.

@FastMovingLuxuryGoods

I also fully agree that my financial privilege has come from other things such as:

• being born into a family that I knew I could rely on
• being brought up by parents who encouraged me to go to university
• being born at a time when I could do that for free, effectively
• being white, middle-class and educated which meant my face 'fitted' at job interviews
• being healthy enough to work full-time all my life
• having children who were also healthy to allow me to work full-time

None of this stuff is down to my hard work, natural ability or financial planning savvy. It is simply my good fortune and therefore also my privilege.

To expand on the family point though, there are a lot of skills that are passed on through generations that are hugely advantageous to living cheaply.

My mum was primarily raised by her gran, who taught her a lot of home cooking skills that are incredibly frugal. I grew up in the deep countryside, being taught the same skills because my mum worked PT from home. Because we couldn't get anything quickly, I learned delayed gratification very early, and because she didn't drive, I was raised from a young age to walk long distances carrying things. (My mum still lives on a shoestring - she could tell you the price of flour in five different shops and she will trail around all five to get the cheapest item per shop).

Add those things together, and you get an adult who:

• spends less on transport
• can make a nutritious meal very cheaply
• isn't as susceptible to instant gratification

Those things add up to greater financial security.

Money does corrupt as well. The more you have, the more you want.

I agree with your friend. I’ve been on both sides and it makes a huge difference. When I was on a very low salary shopping was ‘which one is the cheapest, how much is that now in the basket and mentally trying to tot up what I’d spent before getting to the till as I only had a set amount of money then worry while things were being scanned I’d counted wrong and was going to be short.

Now on a good wage shopping is ‘that looks nice and tasty, I’ll get that, this too, head to till, check news on my phone while everything is being scanned, hand over my bank card and head off happily.

It’s very different.

I struggle to believe that an adult can be that unaware that people can find themselves facing financial problems through no fault of their own.
I've known people hit every bump in the road and have a succession of terrible luck, which despite being hard-working and sensible with money has been a nightmare to recover from.

None of this stuff is down to my hard work, natural ability or financial planning savvy
Really? Many kids get their Uni fees paid but don't make it to the end or get very poor results. You still have to work quite hard to get into a course and finish it with a good degree.

Health is an element of good genes but also how much you look after it and that can take quite some effort.

All well to get a better chance at interview if you are white and middle class but if you don't do some research on the company and prepare in advance, your chance of getting the job is not great.

Great thread!

I agree that privilege gives you freedom to make better choices.

Whilst we are not wealthy, I class myself as privileged:
We can buy our dc decent clothes and school shoes that last
We can spend £100 a week on food shop
We can pay our bills
We can save
We contribute to pensions
We contribute to life insurance
We can save for us and dc
We can order take away/eat out
We can have family days out
We can pay for the unexpected - car, household item breaking down, leaky roof

We do however live in a small house
We require both our salaries to live as we do
We have some years left on our mortgage
We save over a year for family holidays
We do not outsource cleaning, gardening, ironing etc

@dontdisturbmenow

None of this stuff is down to my hard work, natural ability or financial planning savvy Really? Many kids get their Uni fees paid but don't make it to the end or get very poor results. You still have to work quite hard to get into a course and finish it with a good degree.

Health is an element of good genes but also how much you look after it and that can take quite some effort.

All well to get a better chance at interview if you are white and middle class but if you don't do some research on the company and prepare in advance, your chance of getting the job is not great.

I think you've rather missed my point.

I'm financially privileged. I have enough to eat, to heat my house and pay my rent. Whilst I don't have savings and live in my overdraft due to not earning quite enough, buy my clothes from charity shops etc, but I'm in a much better position than many.

Inherited wealth

What is your job OP?