The Social Lives of Rich People, Explained by Christopher Ingraham

In his article, Christopher Ingraham explores recent findings which suggest that the amount of money an individual has may strongly affect relationships, how one socializes and with whom. Emily Bianchi and Kathleen Vohs examined decades of household survey data and came to the conclusion that as people make more money, they tend to spend more time alone. Ingraham summarizes,

Compared with people in the bottom 25 percent of household income, higher-income people (top 25 percent) spent an average of 4.6 fewer evenings with family and 8.3 fewer evenings with neighbors each year. But when it came to friends, the situation was reversed: Higher-income people spent about 5.2 more evenings with friends than their low-income counterparts. And those gaps get even wider as you move farther out on the income spectrum, as the chart above shows.

But why?

There are a number of potential explanations. Bianchi and Vohs note that family members and neighbors provide each other with tangible forms of social support: Your parents might give you financial support for large purchases, or you might rely on a neighbor to mow your lawn or fix your washing machine in a pinch.

“For people with limited financial resources, these social ties are likely to be crucial for managing existing and impending challenges,” they write.

Find the full article here: The social lives of rich people, explained

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal