On many occasions we hear people who attribute their economic level to their “rich mentality.” This ambiguous concept is usually identified with personality variables, such as perseverance, willpower or self-sufficiency, and with intellectual capacity.
However, and although there are psychological studies that confirm that personality and intelligence have a certain weight in professional success, the truth is The “rich mentality” philosophy is fallacious because the level of income depends to a greater extent on external factors that are beyond the control of the individual.
The most common way to measure cognitive abilities is using intelligence tests, which They value the person’s performance who answers the test in global skills such as verbal or abstract reasoning.
Intelligence tests frequently measure “intelligence quotient” (IQ). IQ is calculated by comparing a person’s scores with those obtained previously by others of the same age; If the score is 100 the subject will have an average IQ, while the further away from this number the greater their distance from the average will be.
The well-known tests that consist of choosing which figure among four options is the most appropriate to complete a series are good examples of IQ tests.
Aptitude tests are another way to measure intelligence, although they include more aspects. These tests measure different abilities such as reasoning, calculation, verbal or mechanical skills. Unlike IQ tests, aptitude tests do not only measure intellectual abilities and are mainly used in career guidance and personnel selection.
How does intelligence influence the economic level?
A low IQ is related to lower abilities , especially at the verbal level and in relation to abstract reasoning. This can make it difficult for people with intellectual functional diversity to access certain activities and professions.
IQ has little direct influence on professional status, and therefore income; However, intelligence has an impact on the educational level and this on the professional level, so that a relevant indirect influence occurs.
The scientific literature suggests that, although very low intelligence makes it difficult to achieve a high economic status, having a high IQ only explains 1 or 2% of the level of income. Aptitude tests predict wealth better than IQ tests, since they are related to more specific skills relevant to certain professional roles.
Furthermore, although intelligence explained people’s economic success, IQ is largely inherited from parents and mothers. That is to say, it does not have much to do with willpower, and after puberty the results on intelligence tests applied to a person become very predictable.
In any case, if we talk about the influence of psychology on the economic level, personality seems to have a more relevant role than intelligence.
The 5 big personality factors
The most popular personality model today is what we know as the “big five factors model” or “OCEAN model”, for the acronym in English of the personality variables that make it up.
According to the model, these five big personality factors manifest in each person at a point on a continuum with two poles: Extraversion-Introversion, Neuroticism-Emotional stability, Responsibility-Neglect, Agreeableness-Antagonism and Openness to experience-Conventionalism.
Each of these factors It comprises a series of personality subfactors For example, the Responsibility factor includes the need for achievement and self-discipline, and shyness and impulsivity are included in Neuroticism.
The influence of personality on the economic level It has been analyzed using the big five factors model. A study by Borghans and his collaborators states that the Responsibility factor is the one that explains financial success to a greater extent.
The “Responsibility” construct includes perseverance, self-discipline, and industriousness, among other characteristics. Borghans’ team affirms that, as happens with IQ, these variables increase academic and subsequently work performance. Other personality factors are also important. Openness to experience increases performance while an excess of introversion or neuroticism can greatly worsen it.
Unlike IQ, These personality attributes are more modifiable , so people who promote the development of a “rich mentality” (as happens on some Internet pages and businesses) tend to give them more weight. We are also less likely to get rich if our social skills are poor.
On the other hand, scientific research also gives more importance to personality than to intelligence. Even so, at a global level other non-modifiable variables have a much more relevant role than psychological ones.
Income level is inherited
The two factors that most influence the economic level of any person are your country of birth and your parents’ income level According to studies, these variables explain approximately 80% of economic status, while hardly more than 5% could be attributed to psychological variables.
The economic level of the parents influences that of their children in many ways. Perhaps the clearest effect is the improvement in access to academic training opportunities, especially in countries where there is no egalitarian public education.
These differences are especially notable in societies in which socioeconomic mobility is very limited such as those that are organized through a caste system.
The concentration of money explains inequalities
According to the economist Thomas Piketty, known for his historical analyzes of the evolution of the economy in various countries, in societies in which inheritance is unimportant, work has a much greater weight in enrichment.
On the contrary, the more assets are concentrated in a small number of people The more difficult it is to get rich through one’s own efforts. The population stagnation currently taking place in most of the world further increases this accumulation of wealth.
Furthermore, having savings and property is generally much more profitable than earning money from work, especially if you start “from scratch”, as happens with working class people.
In this way, the current economic trend throughout the world promotes that wealth depends more on the economic level of the parents than on the effort either. Of course, personality variables and intelligence also contribute to socioeconomic mobility, but they have a much lower weight, closer to that of luck.
Explanations that attribute wealth only to effort and ability ignore more important non-modifiable variables such as our family. Although effort or luck are essential to get rich, we must not forget that the best way to earn money is to be born having it.
