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Purpose The purpose of this paper is to explore the functions of material possessions and economic resources in peer relationships among third grade children. Design/methodology/approach In total, 48 Swedish children aged nine were interviewed in focus groups, using a projective vignette technique and pictures. The children were asked if and how children in general could gain new friends through material possessions and money. Findings The findings indicate that children perceive possessions as multi‐functional tools in peer relationships. The ability to fit into the peer group, by the use of different possessions, was perceived as especially important. Additionally, children perceived money as an altruistic tool to demonstrate kindness. Research limitations/implications This is a qualitative study and the results are based solely on ten focus groups. Practical implications This study implies that children's ability to fit into the peer group seems to be more important than the need to express individuality. Thus, it may be a challenge for social marketers, teachers, parents, and others to address children's consumption behavior as a factor strongly influenced by the peer group. Originality/value Previous research indicated that material possessions were important for children in order to gain popularity among peers. However, few studies have tried to investigate how children perceive the functions of material possessions and economic resources.
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