What's the secret to wealth or financial success? 50-yr-long study says it’s not IQ, connections or hard work
By Shweta Kumari | First Published Dec 22, 2024, 4:42 PM ISTA groundbreaking 50-year-long study has revealed the secret to financial success—and it’s not academic excellence, professional networks, or sheer work ethic.
A groundbreaking 50-year-long study has revealed the secret to financial success—and it’s not academic excellence, professional networks, or sheer work ethic. The revelation? Emotional intelligence (EQ) and self-control play pivotal roles in shaping a prosperous wealthy future.
Since 1972, psychologists have tracked the lives of 1,000 children from Dunedin, New Zealand, observing their development from infancy to adulthood. This study, known as the Dunedin Multidisciplinary Health and Development Study, has discovered a goldmine of data and generated over 1,000 influential research papers, reports, and books.
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The researchers identified a direct connection between high emotional intelligence and financial stability later in life. Individuals with elevated EQ exhibit traits like optimism, empathy, effective communication, and the ability to manage negative emotions constructively. On the other hand, children with low EQ were more likely to face financial struggles, including limited savings, poor credit habits, and reliance on social welfare systems.
Emotional intelligence: Foundation for financial stability
Participants with lower EQ were significantly less likely to have built essential financial assets—such as home ownership, investment portfolios, or retirement plans—by their 30s. In contrast, those with higher EQ demonstrated responsible money management, budgeting, and long-term planning, paving the way for sustained success.
"All children lack self-control now and then, but this composite measure ensured that low scorers had shown poor self-control in a variety of situations and across years," the researchers stated in American Scientist.
EQ vs IQ: Key to success
While children from affluent families and those with higher IQs often demonstrated greater EQ, the study emphasized that emotional intelligence is not an innate trait. It can be cultivated through intentional practices by parents, educators, and intervention programs.
Children begin developing emotional intelligence during infancy and toddlerhood, making early intervention critical. Experts suggest that parents can nurture EQ by modeling positive behaviors, validating their child’s emotions, and engaging in open communication. For instance, Weston Family Psychology highlights the importance of helping children connect emotions to experiences.
Simple statements like, "You look happy when you see the colorful toy," foster emotional awareness from an early age.
The study underscores that EQ equips individuals with sought-after workplace skills such as collaboration, social awareness, and effective communication. These traits enhance job security, increase the likelihood of promotions, and contribute to professional growth.
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