Wednesday, April 25, 2007

Intelligence and financial wealth are not related

"Science Daily — It doesn't take a rocket scientist to make a lot of money, according to new research. A nationwide study found that people of below average intelligence were, overall, just about as wealthy as those in similar circumstances but with higher scores on an IQ test."
The study does clarify that those with higher IQ's tend to have higher incomes, but wealth has to do with planning for retirement, and having the ability to "help buffer life's storms".

"All participants were also surveyed about their income, total wealth, and three measures of financial difficulty: if they currently have any maxed-out credit cards, if over the past five years they had any instances where they missed paying bills, and whether they ever declared bankruptcy. "

They found that higher IQ does not protect against financial difficulties, and noted "those of slightly better than average intelligence are best off,” Zagorsky said. "

"For example, the percentage of people who have maxed out their credit cards rises from 7.7 percent in those with an IQ of 75 and below to a peak of 12.1 percent among those with an IQ of 90. Then the percentage falls in an irregular pattern to 5.4 percent among those with an IQ of 115 before rising again. "

This supports the idea that there are different types of intelligence, and that IQ is just one measure. Some of the smartest people I know lack common sense, others are socially awkward and miss social cues, while other 'normal' people may not be as quick to learn new games or rules, but have a guiding wisdom that is invaluable.

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