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Material hardship is a significant indicator of poverty, offering direct insights into the inability to afford necessities. When examining material hardship, often a decision lies in determining the boundaries that distinguish those who experience hardship from those who do not. This decision holds significance given the threshold for differentiating hardship from non-hardship populations guides poverty identification, informs assessments of the impacts of material hardship, and directs poverty reduction initiatives. While there are several material hardship classification approaches, there is limited research investigating the effects of different approaches on outputted proportions of material hardship. This study examines three common methods for classifying families based on their material circumstances to assess the consistency and variability in who is classified as living in hardship. Data from four waves of the Growing Up in New Zealand longitudinal study (n = 6575), spanning early childhood through to early adolescence, were utilised to explore the outcomes of these classification approaches across the four waves. Findings reveal differences in the prevalence rates and interpretations of material hardship over time, depending on the adopted method. This research demonstrates the influence of a researcher's choice of classification method on the understanding of material hardship within a given population. Setting thresholds is not a ‘one-size-fits-all’ pursuit but a decision requiring careful consideration. Consequently, this study offers insights to equip researchers in selecting an appropriate method aligned with their specific research aims. Clear reporting of the chosen method is encouraged to ensure informative assessments.