Wealth and intelligence 'do not go hand in hand'
Having a high IQ may not increase a person's chances of being rich.A US study has found no correlation between wealth and intelligence, claiming that clever people are just as well off as those with lower IQ scores.Furthermore, today's research says that those with high intelligence are more likely to find themselves in financial problems."People don't become rich just because they are smart," said Jay Zagorsky, study author and research scientist at Ohio State University."Your IQ has really no relationship to your wealth. And being very smart does not protect you from getting into financial difficulty."Dr Zagorsky's study confirmed other researchers' findings of a clear link between income and intelligence, with high-earners regarded as smarter.But he says his research is the first to examine the relationship between wealth and financial difficulty."Financial success for most people means more than just income," the scientist explains."You need to build up wealth to help buffer life's storms and to prepare for retirement. You also shouldn't have to worry about being close to or beyond your financial limits." Almost 7,500 people participated in the research in 2004; with people required to take the US army's qualification test and a general aptitude exam employed by the country's department of defence.People were then quizzed on their income, total wealth and whether they had encountered financial difficulties in their lives Ã¢â‚¬" such as maxing out credit cards, missing bills or declaring themselves bankrupt.Although Dr Zagorsky says that the top two per cent of American society (with IQ scores in excess of 130), earn $18,500 more than their less clever counterparts on an annual basis, he insists there is "no strong relationship" between total wealth and intelligence".But he admits his data cannot provide the answer to the questions its raises, namely why are supposedly intelligent people earning more money but still finding themselves in financial difficulty."Just because you're smart doesn't mean you don't get into trouble. Among the smartest people, those with IQ scores above 125, even six percent of them have maxed out their credit cards and 11 percent occasionally miss payments," Dr Zagorsky continued."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."Today's research is published in the journal Intelligence.
financialAdvice.co.uk looks at 5 ways to Save in 2013
2012 was an unforgiving year for many. The economy failed to make any major bounds forward meaning businesses continued to struggle, and this was passed onto the consumer. For many people the idea of saving would have been ever-present, but the reality of being able to achieve any sort of sizable monthly contributions to the piggy bank, much further away. Now that we are in January and Chri...Read More
Eastern European banks receive £22 billion in European aid
It has been revealed that a raft of Eastern European banks are to receive around £22 billion of aid from the European Bank of Reconstruction and Development, the World Bank and the European Investment Bank which were all set up to support members of the EU. This will come as no surprise to those who follow the sector as a number of recent entries to the EU are struggling to survive amid claims th...Read More
Pensioners 'missing out on billions'
Billions of pounds in pensioner benefits are lying unclaimed, the charity Age Concern has warned.As part of its Your Rights campaign the organisation is urging older people to claim the benefits they are entitled to, which it says amounts to £4.2 billion.Age Concern says that £1.4 billion in council tax credit goes unclaimed each year and has launched a campaign to provide claimants with more in...Read More
Thursday's gilt auction proves highly successful
While only 24 hours ago the talk was of a failed gilt auction in the UK, the first since 1995, today has seen a successful refinancing of UK debt with £2.99 billion of offers received for just £1.1 billion government bonds on offer. The cover ratio for this particular auction is 2.72, against 1.12 when similar bonds were issued in October and 0.93 for a similar gilt auction on Wednesday. So is t...Read More
Financial Services Authority to hit banks for more cash
At a time when the UK banking industry is still struggling it has been revealed that the Financial Services Authority (FSA) is looking to increase financial company contributions towards the cost of regulation and associated expenses. However, as we saw over the last few weeks, building societies amongst others have been very vocal in their calls for a reduction in regulatory premiums at this poin...Read More