Family Wealth May Explain Differences In Test Scores In School-age ChildrenScienceDaily (Mar. 26, 2008) — A new study published in the March/April 2008 issue of the journal Child Development finds that family wealth might partly explain differences in test scores in school-age children. The study, conducted by researchers at New York University, also found that family wealth is positively associated with parenting behavior, home environment, and children's self-esteem.
Prior research has documented the association between children's cognitive achievement and the socioeconomic status of their parents as measured by education level, occupation, and income. Many of these studies focused on the effect of poverty--defined by family income--on children's achievement, but household wealth (i.e., net worth) has received little attention.
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Family wealth accumulated from different sources also was found to have a distinct influence on children at different developmental stages. Liquid assets, particularly holdings in stocks or mutual funds, were positively associated with school-aged children's test scores. Family wealth was associated with a higher quality home environment, better parenting behavior, and children's private school attendance.
The researchers suggest that the stronger impact of wealth on school-aged children may be because school-aged children benefit more from family wealth that is spent on educational resources that require substantial financial investment, such as private schools, extracurricular activities, and cultural experiences. Furthermore, older children may be more conscious of differences in wealth relative to their peers as they are exhibited in the quality of the learning environment, possessions, and the type of neighborhood where children live. These differences may influence their self-esteem and aspirations, which in turn are positively associated with their school performance.
Wealth is a surrogate for other causes including the possibility that people with traits that are useful for education are also better qualified for success in modern business leading to accumulation of wealth.
It may be that such traits are inherited and if so, the 21st century with designer babies on the horizon will be interesting,