The 'sibling wealth gap' is the centre of all your family drama.

"I'm a better saver, which means my sister expects me to contribute more with family things. It's not like I earn more, she just chose to spend her money on things while I chose to save."

Sound familiar? Then, like the case study above, you might be dealing with a sibling wealth gap. Allow us to explain.

Watch: Finance minister Katy Gallagher on the gender pay gap. Post continues after video.

What is the sibling wealth gap?

The sibling wealth gap refers to the differences in financial resources, income, or savings between siblings.

For some, like the person above, it can be a subtle difference in how the siblings manage their money — one saves, one spends.

For others, it's a bigger gap — one sibling might have a much higher income, more financial independence, or a different relationship with money altogether.

Whatever the case, this imbalance can lead to some ~tricky~ feelings.

What are the challenges of a sibling wealth gap?

Where do we start? Frustration. Guilt. Resentment.

When one sibling is doing better financially than the other, it's hard not to feel the difference, especially when it comes to big family moments.

From buying gifts, chipping in for family vacations, or just helping out when someone's struggling, these situations often leave one sibling feeling like they're bearing the brunt of the expenses.

"The most difficult thing is the unfair expectation she has on me," shared another case study about their sibling. "Obviously I love spending money to help my family and parents out, but I shouldn't be the sole sibling contributing to those things because she spends too much money online shopping."

Alternatively, the wealth gap can make the lower income earner feel guilty if they can't afford to chip in as much as their sibling.

"Looking back at specific moments when we were trying to split things, it caused what I would now say unnecessary stress for the person who couldn't afford as much. I should have just lent in and said I'll take a bigger share of the pie. Who cares, it's just money," another case study shared.

According to financial journalist and educator Frances Cook, it's "human nature for siblings to compete".

"Unfortunately, money is one of those areas that tends to magnify any existing issues," shared Cook. "Money is often taken as a way to measure our success, our worth, how accomplished we think we are.

"None of that is necessarily true, but it's very difficult to put those thoughts out of our heads. If there's an obvious difference between siblings on such a sensitive issue, it's hard for it to not become a source of resentment, which can cause tension."

How can siblings navigate conversations about money?

Talking about money isn't easy, but it can be necessary if you want to avoid any resentment or awkward family dynamics. So, how do you navigate the difficult conversation?

"Both sides need to work to make sure they don't let money come between them, but I do think the bigger responsibility falls on the person who earns more," Cook told Mamamia.

"If there are group activities to be planned, suggest things that are within everyone's budget. Or suggest two options, one more frugal, so that there's the option for those on a budget to gracefully steer towards the activity that works better for their income level.

"On the other side of things, it can be helpful for the person who doesn't earn as much to try to put aside any feelings of resentment, or judgement, towards the person who earns more than them."

Cook went on to explain that, as money is often used as a measure of success, it can be easy to fall into a trap of assuming others are judging you for not earning as much. But, she stressed, this often isn't the reality.

"Most people are too busy thinking about themselves to worry much about judging you, or are well aware that you have good reasons to be earning a different amount than they do," she said.

How can parents ensure financial fairness in the future?

For parents, it's not just about the here and now — it's about the future, too. Inheritance, for example, can unintentionally deepen the wealth gap between siblings. So, how can parents make sure their financial decisions don't create more tension down the line?

"As a parent you're constantly caught between siblings, who will each often accuse you of favouring the other child," said Cook.

"My approach is to remember that by the time your children inherit, they will hopefully be well into adulthood, and will have made choices as adults, that shape the way their life has turned out. The best gift you can give them is to help them navigate life, and build a healthy financial base, while you're still here to guide them."

The financial journalist explained that what parents leave their children may be "interpreted as an expression of how much you loved each child" regardless of their rationale behind the decision.

"My suggestion is to help guide them while you're here, and then leave equal amounts to each when you're gone, to avoid stoking tension and causing more unintended grief."

Listen to Frances Cook's finance podcast Making Cents right here.

Feature Image: Instagram/@khloekardashian