Have you ever noticed how two families with similar incomes can feel completely different about their financial situation? Research suggests that it is not always actual income that shapes family life. Sometimes, what matters most is how parents perceive their financial situation. A recent study by Van Petegem and colleagues explored how parents’ perceptions of economic inequality and financial scarcity relate to their involvement in their children’s schooling.¹
Imagine a parent scrolling through social media and seeing friends post about private tutors, expensive extracurricular activities, and college savings accounts. Even if that parent is paying their bills and meeting their family’s basic needs, those comparisons may create feelings of financial inadequacy. These feelings of inadequacy may be amplified if parents also see that the society they live in has big differences in social class. Every parent wants what is best for their child, and the pressure to not let their children fall further down the social ladder can be intense. Over time, these perceptions can shape how parents interact with and support their children’s education—as education can be an important investment in a child’s future success and stability. The issue is not only how much money a family has, but also how parents experience their financial situation and perceive the broader economic environment.
The researchers examined two related but distinct concepts. The first was financial scarcity, the subjective experience of having insufficient financial resources, including financial worry, a lack of control over one’s finances, and short-term financial focus.¹ The second was perceived economic inequality, which reflects how strongly parents believe that financial resources are unevenly distributed across society. While these concepts are related, they influence family life in different ways. Financial scarcity focuses on personal financial pressures, while perceived economic inequality reflects broader beliefs about the economic environment.
Why does this matter for parenting? When people experience financial scarcity, mental energy is often directed toward immediate financial concerns. Parents may spend significant time worrying about bills, expenses, or future financial obligations. Past research suggests that financial scarcity can negatively affect psychological well-being, which could influence parenting behaviors.2 The researchers were interested not only in how much parents were involved in school, but also how they were involved. Autonomy-supportive school involvement encourages children to think independently, make age-appropriate decisions, and take ownership of their learning. Controlling school involvement relies more on pressure, direction, or attempts to manage children’s behavior. Previous research suggests that autonomy-supportive involvement is generally associated with greater motivation and engagement in school, whereas controlling involvement has been linked with less positive educational outcomes.¹ The researchers found that parents’ perceptions of economic inequality and financial scarcity were related to the way they became involved in their children’s education. Specifically, parents who perceived greater national job insecurity in their country and those who perceived greater financial scarcity personally reported more controlling school involvement, whereas parents who perceived greater income inequality reported slightly more autonomy-supportive school involvement.¹
Van Petegem and colleagues suggest that these findings may reflect the different ways parents respond to economic uncertainty. Parents who perceive greater income inequality may become more motivated to help their children develop the independence and skills needed to succeed in a competitive society. On the other end, concerns about national job insecurity may feel like a more immediate threat, leading some parents to adopt more controlling approaches in an effort to protect their children and improve their chances of future success.¹
Importantly, the findings do not suggest that parents who experience financial stress or perceive greater job insecurity care less about their children. In fact, many financially stressed parents are deeply committed to their children’s success. Rather, the study highlights that financial experiences may influence the way parents become involved in their children’s education. Rather than changing whether parents care about school, financial scarcity and perceptions of the broader economy may shape how parents support and guide their children academically.¹
All in all, parenting does not occur in a vacuum. Parents are raising children while simultaneously navigating financial realities, social comparisons, and broader economic systems. Understanding how these experiences influence parenting can help families, schools, and communities create environments that support both parents and children. The authors suggest that supporting families may involve not only addressing economic hardship, but also recognizing how financial experiences and perceptions of the broader economy can influence parenting.¹ They argue that interventions should not focus only on changing parenting behaviors. Instead, supporting parents by reducing financial stress and addressing challenges such as parenting stress, parental mental health, and family conflict may ultimately create healthier environments for children.¹
Takeaways:
· Pay attention to feelings of financial scarcity.
Financial scarcity includes more than having a limited income. Pay attention to any feelings you may have of financial worry or a lack of control and recognize how those feelings may be influencing your interactions with your child.
· Support your child’s independence.
Autonomy-supportive involvement encourages children to make choices and take ownership of their learning. Giving children age-appropriate opportunities to develop independence can help foster their motivation and confidence.
· Give yourself and other parents grace during financially stressful times.
Financial pressures can influence parenting behaviors without changing how deeply parents care about their children’s success. Remember that financial stress may shape how parents become involved, not whether they care about their children.
References:
¹ Van Petegem, S., Eira Nunes, C., Mouton, B., Soncini, A., Lamprianidou, E., Skhirtladze, N., & Visintin, E. P. (2025). Love, money and involved parenting? Associations between parents' perceptions of economic inequality, financial scarcity, and their school involvement. Journal of Family and Economic Issues, 46, 21–34. https://doi.org/10.1007/s10834-024-10016-6
2 Sommet, N., Morselli, D., & Spini, D. (2018). Income inequality affects the psychological health of only the people facing scarcity. Psychological Science, 29(12), 1911–1921. https://doi.org/10.1177/0956797618798620