Intelligence = Wealth?

For most people, it's hard to deny that intelligence can give you a leg up in life. People with high cognitive abilities, like problem-solving skills and critical thinking, tend to do better in school and in their careers.

But here's the thing: research suggests that the connection between intelligence and wealth isn't as straightforward as we might think. In fact, studies have shown that the correlation between intelligence and wealth is relatively weak, with a correlation coefficient of around 0.2-0.3 (1). That means that while there might be some connection between the two, it's not a guarantee of success.

Surprisingly, childhood IQ is actually a stronger predictor of adult wealth than adult IQ (2). What happens in childhood can have a bigger impact on your financial future than how smart you are as an adult.

There are also different types of intelligence, like emotional intelligence and social intelligence, that can be just as valuable as traditional measures of cognitive ability. And let's not forget that intelligence can be developed and nurtured through education, experience, and dedication to a specific craft/interest.

And there's even more to it than that. Wealth isn't just about individual intelligence or effort - it's also about systemic factors like inequality, discriminatory policies, and economic systems. And let's not forget about luck, privilege, and circumstance, which can all play a role in determining an individual's wealth.

A Word to Parents:

As a parent, it's natural to want the best for your kid, and to worry about their future success. But here's the thing: your kid's grades aren't the only thing that matters (speaking as someone coming from an Asian family). In fact, research suggests that a well-rounded childhood, with plenty of opportunities for exploration and play, is just as important as academic achievement.

Encourage them to explore their interests, develop their passions, and learn from their mistakes. Encourage them to ask questions, seek out new experiences, and develop a growth mindset. By doing so, you'll be helping your kid develop the skills and resilience they need to succeed in life, regardless of their intelligence level or financial circumstances.

References:

(1) The Conversation: "Are rich people more intelligent? Here's what the science says" (2022)

(2) Neuroscience News: "Childhood IQ Linked to Wealth in Adulthood" (2022)