By how much did income differ for kids who grew up around richer peers?

Codie SanchezFounder @ Contrarian Thinking

Wanna make more money? Watch where you live…

19 Sept 2024 · 1 min

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A short YouTube commentary by Codie Sanchez summarizing a study on economic connectedness: children from similar family income backgrounds who grew up in neighborhoods with higher-income peers earned 33% more by age 35. The clip emphasizes that family socioeconomic status is not the sole predictor of adult income and advises paying attention to who you surround yourself with and where you live.

Questions this video answers

33% higher income by age 35.

Chapters

There was a study where they looked at kids from similar economic backgrounds, AKA how much money they made growing up and then how much money they went on to earn as adults. But there was one key difference. One study group was from a town where people made more money and they interacted with more people who made more money. The other was the opposite. What was the result? The group of kids that grew up in the neighborhood with more rich people had a 33% higher income by 35. That is wild. The socioeconomic status of your own family is not the number one indicator of your future income. In fact, it's actually this thing called economic connected, which means how many rich people and poor people live by you, and thus you can become friends with. So if you want to make more money, watch who you surround yourself with, but also where you live.