Thursday, 26 Apr, 2007 Science
28
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Rich People Are Not Always Smart People

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A recent study, made nationwide, showed that one can make a fortune without having an astronomical IQ score. Scientists were able to determine that some people with a below average level of intelligence had about the same amount of money as those having higher scores on IQ test. It is worth mentioning that the analysis took into consideration the same circumstances of both categories.

In addition some people, who are considered to be extremely intelligent, stated that they had financial difficulties. The author of the study, Jay Zagorsky, who also works as a research scientist at Ohio State University's Center for Human Resource Research, mentioned that the reason why people get rich is not because they are more intelligent (smarter) than others.

He mentioned that one's IQ has nothing to do with wealth. Thus very smart people are not protected from getting into difficult financial situation. However, scientists found one important indicator regarding the advantage of being smart, which is income. Thus the one whose IQ was higher turned out to get paid more than people with lower level of intelligence.

Mr. Zagorsky said that the research is different from others, that focused on the link between IQ and Income. In his research, scientist went further and studied the relationship between three factors: intelligence, wealth and financial difficulty.

The results of the study were based on the information collected from 7,403 Americans, who took part in the National Longitudinal Survey of Youth. The survey is funded by the U.S. Bureau of Labor Statistics and it represents people who are currently in their mid 40s.

Those that participated in the study completed a general aptitude test called Armed Forces Qualification Test. This one is used by the Department of Defense. Participants had to give answers to several questions on their income, wealth as well as 3 financial difficulty measures. The three measures include: maxed out credit cards, missed paying bills and bankruptcy.

The final results showed that people with higher level of intelligence look forward to increase their income. If taking into consideration each point in the IQ scores, scientists observed that it [the point] was associated with $202 to $616 more income per year.

The data shows that the difference between the average income of an individual with a high IQ score and lower one in the normal range (100) is between $6,000 and $18,500.

When came the results on total wealth and the possibility of financial difficulties, those that had a below average and average level of intelligence did better than the super-intelligent ones.

Smart people get into trouble just as often as the less intelligent ones. Among people having an IQ score above 125, 6% have maxed out their credit cards and 11% occasionally miss payments, Mr. Zagorsky said.

"Intelligence is not a factor for explaining wealth. Those with low intelligence should not believe they are handicapped, and those with high intelligence should not believe they have an advantage," he mentioned.

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Comments:

19 votes

//6 Oct 03, 2008 06:58 PM | posted by: sharaeff [InfoMANIAC]
The problem of smart people is that they have too much theoretical knowledge which bases upon definite rules. So when they get into a difficult situation they try to behave according to certain rules which sometimes don't even exist. In this case those people whose IQ is lower are more flexible which gives them the possibility to react quicker and to risk. It's impossible to teach someone to become rich. You either have in blood or not.
18 votes

//5 Oct 03, 2008 06:57 PM | posted by: sharaeff [InfoMANIAC]
The problem of smart people is that they have too much theoretical knowledge which bases upon definite rules. So when they get into a difficult situation they try to behave according to certain rules which sometimes don't even exist. In this case those people whose IQ is lower are more flexible which gives them the possibility to react quicker and to risk. It's impossible to teach someone to become rich. You either have in blood or not.
22 votes

//4 Sep 20, 2008 05:56 PM | posted by: summer_rain [InfoMANIAC]
True... it's all about financial aptitudes and not about a high IQ... if you don't have them and don't know how to handle with your money, your IQ won't help you at all...
25 votes

//3 Apr 19, 2008 06:09 PM | posted by: krish
hi dude ssup
25 votes

//2 Apr 14, 2008 04:25 PM | posted by: snsuresh [InfoMANIAC]
true many billionaries are stupids
26 votes

//1 May 31, 2007 11:00 AM | posted by: grumbler [InfoSLAVE]
Is it possible that the persons with the higher income feel the pressure to live a certain lifestyle and this then effects their financial difficulties?

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