Comments on: Are Smart People Bad With Money? http://www.moneycrashers.com/are-smart-people-bad-with-money/ personal finance blog Fri, 21 Nov 2008 06:55:47 +0000 http://wordpress.org/?v=2.5.1 By: author http://www.moneycrashers.com/are-smart-people-bad-with-money/#comment-5684 author Thu, 17 Apr 2008 16:40:12 +0000 http://www.moneycrashers.com/are-smart-people-bad-with-money/#comment-5684 i totally agree, there are plenty of millionaires out there with above average intelligence. But, I think the point is that above average intelligence can get in the way of a rational view towards money. i totally agree, there are plenty of millionaires out there with above average intelligence. But, I think the point is that above average intelligence can get in the way of a rational view towards money.

]]> By: Enough Wealth http://www.moneycrashers.com/are-smart-people-bad-with-money/#comment-5682 Enough Wealth Wed, 16 Apr 2008 11:10:09 +0000 http://www.moneycrashers.com/are-smart-people-bad-with-money/#comment-5682 "This seems like a silly study that would be hard to quantify. How he came up with $200 to $600 a year for every IQ point is beyond me..." - I'm pretty confident that the research methodology and statistical analysis were outlined in the paper (I can't be certain since you didn't link to the research itself) - perhaps you just need to brush up on statics and experimental design theory ;) My only criticism of this study would be regarding the conclusion that more intelligent people are "squandering" their wealth. Most people seem to have a goal of expending all their income during their life cycle - they save some for retirement during their peak earning years, but plan on spending it all during retirement. Very few people have a specific goal of accumulating wealth in order to leave an estate (I'm one of the few). So, perhaps the less intelligent people are less able to plan for their retirement needs, and accumulate excess wealth "by accident" (ie. unintentionally) by being excessively frugal. Anyhow, take it from a millionaire Mensan that not ALL intelligent people "spend their money more quickly and frivolously" ;) “This seems like a silly study that would be hard to quantify. How he came up with $200 to $600 a year for every IQ point is beyond me…” - I’m pretty confident that the research methodology and statistical analysis were outlined in the paper (I can’t be certain since you didn’t link to the research itself) - perhaps you just need to brush up on statics and experimental design theory ;)

My only criticism of this study would be regarding the conclusion that more intelligent people are “squandering” their wealth. Most people seem to have a goal of expending all their income during their life cycle - they save some for retirement during their peak earning years, but plan on spending it all during retirement. Very few people have a specific goal of accumulating wealth in order to leave an estate (I’m one of the few). So, perhaps the less intelligent people are less able to plan for their retirement needs, and accumulate excess wealth “by accident” (ie. unintentionally) by being excessively frugal.

Anyhow, take it from a millionaire Mensan that not ALL intelligent people “spend their money more quickly and frivolously” ;)

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