A few years ago I published a research paper entitled “Do you have to be smart to be rich? The impact of IQ on wealth, income and financial distress” in the journal Intelligence. The finding was that there was no relationship between IQ and a person’s net worth. A slightly longer summary is found by clicking here and the full paper is found by clicking here. Since writing this paper I have been fascinated by the question “Are really smart people able to avoid dumb financial mistakes?”
OMG, it’s prom season again! This weekend was my daughter’s junior prom and before the big event a dozen teenagers and their parents were at my home for “pre-prom” pictures. After the last couple left I did the natural thing for both parents and economists; I started totaling up the various bills for the event. A strange thought crossed my mind. Compared to my older children’s and my own experience, the total price tag for this year’s prom was high, but not as outrageous as in the past. Could it be that proms are actually getting cheaper over time?