Childhood characteristic linked to wealth, science claims
Fed up with the notion that intelligence, talent, or a posh upbringing holds the key to financial success? Think again, because research tells a different story.
The secret ingredient for wealth apparently isn't math whizzes or natty entrepreneurs, but something far simpler: self-control. A study from New Zealand's Dunedin Multidisciplinary Health and Development Study, which tracked 1,000 people from birth to adulthood, found that children who showed strong self-control—the ability to delay gratification, handle emotional upheaval, and tackle difficult tasks with determination—were more likely to become financially successful adults.
And guess what? This wasn't just because they're brainier, better off, or born into the right class. No sirree, these kids with great self-control, regardless of their IQ, family income, or social class, ended up earning more, saving more, and becoming wealthier by mid-life.
Still wondering how resisting a cookie as a kid could translate to future financial abundance? Let us elaborate.
The Link Between Self-Control and Wealth
Self-control is the cornerstone of delayed gratification, a vital skill in personal finance. People with strong self-control are more likely to:
- Say no to impulsive spending. They trade short-term indulgences for long-term rewards.
- Invest strategically. They plan ahead, making decisions that boost their wealth over time.
- Develop career resilience. They're likeamphibians: they keep going through challenges and setbacks without giving up.
Want proof? Look no further than "The Stanford Marshmallow Experiment." Back in the 1960s, psychologist Walter Mischel offered preschoolers a marshmallow right away or two marshmallows if they waited 15 minutes. Follow-ups decades later showed that the kids who waited longer had higher SAT scores, better jobs, and healthier finances in adulthood.
The Surprising Twist: The Self-Made Millionaire's Secret
You might think that millionaires and billionaires are just naturally more disciplined than the rest of us. But hold on to your horses: Plenty of wealthy individuals built their self-control over time.
A study from Harvard Business School found that self-made millionaires weren't necessarily smarter than the average bear, but they were more strategic in managing their impulses. They established strict financial routines, automated savings, and put up walls against spending recklessly.
And even those who struggled with self-control as kids could develop it later, proving that wealth-building isn't just about divine endowment—it's about learned behavior.
How to Cultivate Self-Control (Even If You Struggle With It)
Think you missed the boat for developing self-control? Don't lose heart. Self-control is like a muscle—it strengthens with use. Here's how to flex it:
- Use the 10-Minute Rule. Next time you're tempted to splurge on a non-essential purchase, wait 10 minutes. By then, the urge is likely to have passed.
- Make Automatic Financial Systems Your BFF. Set up automated savings and investments so you don't have to lean on your willpower.
- Imagine Your Future Wealth. Envision your financial success as the result of today's good choices.
The Final Word
The ability to delay gratification is one of the strongest predictors of financial success. While intelligence, talent, and luck all have roles to play, self-control consistently separates future millionaires from the crowd. And the best part? It's a habit anyone can build—starting today.
References
- Moffitt, T. E., et al. (2011). "A Gradient of Childhood Self-Control Predicts Health, Wealth, and Public Safety." PNAS.
- Mischel, W., et al. (1989). "Delay of gratification in children." Journal of Personality and Social Psychology.
- Harvard Business School (2019). "The Habits of Self-Made Millionaires." Harvard Business Review.
People with strong self-control, a skill essential for delayed gratification, are more likely to practice financial discipline by saying no to impulsive spending, invest strategically, and develop career resilience. Notably, many self-made millionaires build their self-control over time, demonstrating that wealth-management isn't solely about innate discipline but also about learned behavior. Like a muscle, self-control can be strengthened through exercises such as waiting 10 minutes before making non-essential purchases, setting up automated savings, and visualizing future financial success as the result of today's good choices.
