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Posts Tagged ‘Financial Mobility’

Recently, a study was released by the OECD (The Organisation for Economic Co-Operation and Development) which correlated the earnings of men to their fathers.  Without getting lost in all the analysis from the report, a discovery has been made which shows that a man’s income is more closely tied to his fathers income level within the United States and Great Britain.

 In the United States, we are brought up to believe that we can achieve anything (Position, Salary, etc) with nothing more than  hard work.  This report challenges this basic belief.

Our parents financial well-being is a bigger influence on our success or financial failure as adults than any other factor.  Looking back on my childhood, I remember seeing my father as the hard-working professional who’s primary goal was career success.  My goal was to be as successful as he was, both professionally and in college.

The analysis points out, that there is a high correlation for our financial success when we grow up in a better educated family, and a corresponding penalty when growing up in a less-educated family.  This is most prevalent in England, Italy and the United States.  Further, a father’s educational level is a primary motivator to his children’s academic success within secondary education.

In other words, my father was a role model for me as it relates to education and financial stability.  Those who did not have that strong role model, found it difficult to achieve financial success greater than their fathers’.

The end result for those of us in the United States, is that we live in a less financially mobile society then we were brought up to believe. 

There are those who achieve financial success from humble beginnings.  However, they are much fewer in numbers (within the USA, Italy and England) than societies with weaker educational standards (Norway, Finland, etc).  Certainly, much fewer than I previously believed.

As a Husband and Father, I am constantly reminded that I am a role model for my children.  I alway believed that this related to my morals and values.  These findings expand that scope even larger. 

In summary, I am my Father’s Son………..just like my boy will be.

For the full details of this report, please go to:  http://www.oecd.org/dataoecd/17/42/44566315.pdf

-Al

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