Smarter people are no better off

New Scientist reports:

Contrary to common expectation, intelligence does not always predict financial wellbeing. Even though smart people earn more, on average, it does not protect them from financial difficulty.

New research has found that people who score higher on intelligence tests end up with the same net worth as others when lifestyle factors are taken into account. And the study confirms that you don't have to be smart to be wealthy.

The work reveals that while exceptionally smart individuals typically earn more, they are also more likely to spend to their credit card limit, compared with people of average intelligence.

Jay Zagorsky at Ohio State University in Columbus, US, analysed personal financial information collected from 7500 people between the ages of 33 to 41. Subjects provided details about their cash flow – including wages, welfare payments, alimony, and stock dividends – and their overall net worth. They also answered questions about whether they had "maxed out" any of their credit cards, missed bill payments or filed for bankruptcy.

All the participants had taken an intelligence exam known as the Armed Forces Qualification Test (AFQT) in 1980, an intelligence test used by the US military to assess recruits. The AFQT can be translated into IQ scores.

No word yet from the Higher Education Establishment on this one.