Periodic Essay

The Demographics of Wealth - How Age, Education and Race Separate Thrivers from Strugglers in Today's Economy. Essay No. 2: The Role of Education


Abstract: New research by the Center for Household Financial Stability shows that there's a strong correlation between education and money. More of the former often leads to more of the latter. However, correlation is not causation?there is no guarantee that more education will lead to more wealth. Many other factors might be in play, such as natural ability, family environment, inheritances and even health. It's entirely possible that what's learned in the classroom has much less influence on lifetime earnings and wealth accumulation than most people believe. In fact, your ability, family background, inheritances or health might be responsible for some?perhaps a large part?of your success even if you hadn't received the education that you did.

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Provider: Federal Reserve Bank of St. Louis

Part of Series: Demographics of Wealth

Publication Date: 2015

Issue: 2

Pages: 1-28