Do Rich Parents Matter Round Up?

By: Roshawn Watson

Does parent wealth decide kids ultimate intelligence? There's a loaded question with no easy answer, but a new paper has shed some light on this age-old question.

Many parents will argue that even some of the most basic acts of parenting, such as choice of daycare or time allocated for television, can significantly impact their child's success. Nonetheless, much research examining many different traits (i.e. self-control, intelligence, etc.) suggests that the home environment has a much less profound impact than genes and peer group.

A recent study evaluated the mental ability 750 American twins at 10 months old and then again at 2 years old. The thought was by contrasting differences between fraternal and identical twins, researchers could better understand the impact of genetics and home environment. Also, the babies came from a variety of different socioeconomic statuses (SES), so the influence of wealth and home environment on test scores could be studied as well.

The Results

The home environment of 10 months olds was the key determinant of mental ability across every socioeconomic level.
However, at 2 years, wealth made a big difference. For 80% of the children from lower SES, their mental ability was still determined by the parents. Genetics had negligible effects.
For wealthy 2-year olds, the outcome was starkly different. Genetics accounted for nearly 50% of all differences in mental ability. This determination was made because identical twins performed much more similarly than fraternal twins. Home environment was much less important ("a distant second").

Conclusions From Research

Increases in wealth are inversely correlated with the impact parental choices have on kids' mental ability. That's because "(w)hen you remove the environmental variance, the genetic variance remains." (Razib Kahn) The results also suggests that the genetic potential of 2-year olds may be held back based on the SES of parents. Attempting to eliminate home environment inequalities in early years would not correct for the impact genetic variation has on mental development. I would be interested in longitudinal studies following these kids as they progressed throughout life to see if these same associations persist, and it would also be nice to see if the results of this study are replicated. Perhaps an equally interesting question is what impact does mental ability have on overall success (this is not an indictment on being smart...just food for thought).

Thought Question: What do you think of this research and what kinds of things do you do (or your parents) to give children the edge?

Now, it's time to do the weekly Uncommon Money News and Yakezie Round Up.

Uncommon Money News and Round Up
In preparing to write my posts, I often come across noteworthy and sometimes bizarre financial and business news. Below are links to some of these sites. Enjoy!

To my readers: I am so honored by your support. Together, we are telling thousands of the importance of financial literacy. I absolutely could not do it without you: you are vital! Thank you sincerely.

Personal Finance (Yakezie and other PF bloggers)

Which Financial Author Should You Follow? at Money Reasons - Don writes about the distinctions between popular personal finance authors: Dave Ramsey, Robert Kiyosaki, and David Bach.

How To Calculate A Time Weighted Return? at DIY Investor - Robert challenges DIY investors to monitor their portfolio performances more closely by using this calculation.

Spend $10 Cash or Use $20 Store Credit at Retire By 40 - Talk about an interesting dilemma, RB40 poses a dilemma that we've all faced. What I found even more interesting than the question was that every came up with an identical answer!

Up From The Projects at The Biz Of Life - I'm not much for book reviews, but the Grouch makes an easy case for reading Walter Williams's autobiography. This is the aggregate wisdom this trailblazer has accumulated over a lifetime.

Centavos Dividend Stocks at 101 Centavos -Andrew gives a peak inside of his dividend-generating holdings.

10 Home Renovation Tips Learned From Experience at Everyday Tips and Thoughts - Kris explores 10 ways to get the most out of a home renovation.

How Much Home Can You Really Afford at Invest It Wisely - Oldie but goodie... It's quintessential to not overextend yourself for the reasons we discussed earlier this week.

100 Words on Credit Cards at Len Penzo - Len challenges the "credit cards are evil" camp.

Business
How Education Impacts Your Income

Google CEO surprise: Larry Page replacing Eric Schmidt

Groupon CEO says exploring IPO; no decision

Google to hire more than 6,200 workers this year
Housing
US Home Prices Slump Again

Secretary Geithner Sends Debt Limit Letter to Congress

Entertainment Money News

Zsa Zsa Gabor's Mansion for sale for $28 million (pics)

Regis Philbin Quits over pay cut (from $18-$20 million...)

Hollywood Comedy Queens - How Much Do Their Movies Rake In?

They're Rich and Famous and In Foreclosure

Offbeat Money News
The End of Credit Cards

Carnivals that I've participated in:
Festival of Frugality at Spruce Up Your Finances - What Are Your Financial Regrets? (Editor's Pick)

Round ups that linked to posts from this site