The qualities that make financially successful adults begin in childhood, according to the latest findings from a study that began 52 years ago.
Psychologists in New Zealand have tracked 1,000 kids from the city of Dunedin since 1972 to discover the childhood factors with the greatest impact on how they develop into adults.
The best predictors of success in adulthood had little to do with academics, networking or work ethic. Rather, researchers found that participants who grew up to be the most successful adults were more self-possessed than their peers while growing up, showing high levels of discipline and emotional intelligence as children.
Researchers refer to this measure as their “emotional quotient” (EQ). Those with a high EQ tend to show more empathy, have a more positive outlook on life, make more informed decisions and are more comfortable admitting they’re wrong.
However, children with a low EQ were more likely to see “unfavorable outcomes in wealth” as adults. By their 30s, these adults were more likely to be low-income earners, demonstrate poor financial habits and depend on welfare, and less likely to have money in savings, own a home, make investments or plan for retirement.
Participants’ EQ assessments were taken at regular intervals throughout childhood, at the ages of three, five, seven, nine and 11, by observing the children’s behavior, interviewing their parents and conducting surveys with their teachers.
They found a strong association between a child’s ability to regularly, interpret and control their emotions and their level of professional success as adults.
“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 at the University of Otago reported in American Scientist.
Researchers noted that high EQ can be an important factor in the workplace, indicating how well employees collaborate and communicate with their colleagues on the job.
Children can develop a higher EQ with help from the most influential adults in their lives — by encouraging communication, validating their emotions and talking through their problems, openly and honestly.
