Several people wrote to me yesterday about an article that claimed that IQ had no correlation with wealth. This didn't make sense to me.
Luckily, Michael Vassar pointed me to an article which more properly explained this research.
On the surface, people with higher intelligence scores also had greater wealth. The median net worth for people with an IQ of 120 was almost $128,000 compared with $58,000 for those with an IQ of 100.
But when Zagorsky controlled for other factors – such as divorce, years spent in school, type of work and inheritance – he found no link between IQ and net worth. In fact, people with a slightly above-average IQ of 105, had an average net worth higher than those who were just a bit smarter, with a score of 110.
This makes sense, and is consistent with my own findings that, after education is accounted for, above average intelligence doesn't result in higher income. (And when I looked at only people with bachelor's degrees, higher IQ predicted lower income.) IQ predicts educational attainment, and educational attainment is what predicts income. And of course, without higher income, it's unlikely that one will wind up with a greater net worth.
Some people might have expected that people with higher IQ but the same income would be better at saving their money, but I wouldn't have expected that. Living a white collar lifestyle requires more expenses than a blue collar lifestyle, and the expenses begin with the student loans that the white collar person accrues in order to attend college.