The nice folks over at Mint have put together an infographic showing some data driven ways that people can climb the socio-economic ladder.
Since pictures are complicated I’ve distilled down for you are the things you can do right now to make sure your children are statistically more likely to better off than you are.
It’s science so this is foolproof.
Be born into the top 1%
Ok, that’s not something you have control over but it sure does help. 1 in 3 of the 30 year olds who grew up in the 1% make $100K or more while 1 in 25 of those who grew up in the bottom 50% make $100K or more. And those income figures are for family income with an increasing number of dual earner families.
Live in a metropolitan area with mixed incomes
If you live in an area with only poor or low middle class then your children will probably not rise up. But if you live in a metro area with a mixture then they stand a better chance. If you’re already in the 1% then it doesn’t matter, just stay in your McMansion in the ‘burbs.
Move to one of these cities
- New York City
- Boston
- Salt Lake City
- Pittsburgh
- Seattle
- Los Angeles
- San Francisco
- Minneapolis
- Rochester, MN
Living in one of these cities gives children a much higher chance of being upwardly mobile. But only if they grow up there from the time they’re a young child. Moving as a teenager has a much lower effect.
Move away from these cities
- Memphis
- Atlanta
- Charlotte
- Indianapolis
- Columbus
- Raleigh
- Cincinnati
These cities have the worst chances of upward mobility.
On average, Seattle’s fairly poor children (25th percentile of the nation) grow up to do equally as well financially as children in the 50th percentile in Atlanta
Go to a school with good test scores
It will not be surprising that the quality and affordability of K-12 and college education plays a role in upward mobility. The availability of good schools at a reasonable cost is in your children’s best interest.
Don’t be raised by a single parent
This isn’t the same as staying together for the kids, but if you happen to be in a stable two parent home you are more likely to do better than your parents.
Be part of a religious or community organization
It’s not that an omniscient being is rewarding followers with wealth, it’s that the social connections gained in a church or community organization pay off. Though not included in the Mint study, it has been shown that social drinkers make more money because of the connections they make. If you aren’t forming bonds with other people then they won’t clue you in on job leads.
Things that don’t work for upward social mobility from generation to generation (but do work for other things)
- Tax credits for the poor
- Higher taxes on the rich
- Living near more colleges
- Living near the extremely wealthy
