The Star Beacon; Ashtabula, Ohio

World, nation, state

August 30, 2013

Financial stress may hit your brain and wallet

WASHINGTON — Being short on cash may make you a bit slower in the brain, a new study suggests.

People worrying about having enough money to pay their bills tend to lose temporarily the equivalent of 13 IQ points, scientists found when they gave intelligence tests to shoppers at a New Jersey mall and farmers in India.

The idea is that financial stress monopolizes thinking, making other calculations slower and more difficult, sort of like the effects of going without sleep for a night.

And this money-and-brain crunch applies, albeit to a smaller degree, to about 100 million Americans who face financial squeezes, say the team of economists and psychologists who wrote the study published in Friday’s issue of the journal Science.

“Our paper isn’t about poverty. It’s about people struggling to make ends meet,” said Sendhil Mullainathan, a Harvard economist and study co-author. “When we think about people who are financially stressed, we think they are short on money, but the truth is they are also short on cognitive capacity.”    

If you are always thinking about overdue bills, a mortgage or rent, or college loans, it takes away from your focus on other things. So being late on loans could end up costing you both interest points and IQ points, Mullainathan said.

The study used tests that studied various aspects of thinking including a traditional IQ test, getting the 13 IQ point drop, said study co-author Jiaying Zhao, a professor of psychology and sustainability at the University of British Columbia.

The scientists looked at the effects of finances on the brain both in the lab and in the field. In controlled lab-like conditions, they had about 400 shoppers at Quaker Bridge Mall in central New Jersey consider certain financial scenarios and tested their brain power. Then they looked at real life in the fields of India, where farmers only get paid once a year. Before the harvest, they take out loans and pawn goods. After they sell their harvest, they are flush with cash.

Text Only
World, nation, state
  • Lower-income teens don’t get enough sleep

    African-American high school students and boys in low- to middle-income families reported short, fragmented sleep, and that could play a role in their health risks, researchers reported Monday.
     

    April 23, 2014

  • Health agencies try to counter mumps outbreak

    Health agencies trying to stem a large and growing mumps outbreak are advising college, school and even day care leaders to make sure central Ohio students are immunized and to separate them from those who haven’t been vaccinated and those who are infected.
     

    April 23, 2014

  • An ocean of broken hearts

    Lee Byung-soo says he knew, when he saw his 15-year-old son’s body in the tent. It could not have been more horrifically obvious. But he wanted so much for him to be alive.

    April 22, 2014

  • Biden conferring with Ukranian leader over what to do
    U.S. Vice President Joe Biden arrived in Kiev on Monday for talks with Ukraine’s embattled interim leaders as Russia’s top diplomat blamed Washington for instigating the crisis that threatens to escalate into armed conflict between the two former Soviet republics.
     

    April 22, 2014

  • Panel’s role in Cleveland police ruling questioned

    A lawyer for families of men killed in separate 2012 shootings by Cleveland police — including a 137-bullet chase under federal investigation — is questioning a grand jury’s role in a recent county prosecutor’s ruling.

    April 21, 2014

  • Gender gap under Ohio governor nearly $10 an hour

    A newspaper investigation has found the average pay gap between men and women in the offices of four of Ohio’s five elected statewide officials has grown to as much as almost $10 an hour, as it’s shrunk to under a dollar across the rest of state government.

    April 21, 2014

  • OBIT Rubin Carter Box_Lind.jpg Boxer Rubin ‘Hurricane’ Carter dies at 76

    Rubin “Hurricane” Carter, the boxer whose wrongful murder conviction became an international symbol of racial injustice, died Sunday. He was 76.

    April 21, 2014 1 Photo

  • MAG-kramer25p-Janae-O-Neal.jpg Kramer the labradoodle soothes students, staff at middle school

    Once upon a time there was a dog that went to middle school.

    April 21, 2014 1 Photo

  • Ohio sees record high heroin overdose deaths

    A record number of Ohioans died from heroin-related overdoses in 2012, the state Department of Health said as it released the newest available figures for a problem that’s been called an epidemic and a public health crisis.
     

    April 19, 2014

  • Ohio’s jobless rate dips to 6.1 percent in March

    Ohio’s unemployment rate dropped in March to 6.1 percent, its lowest level in six years, according to state job figures released Friday.

    April 19, 2014

House Ads
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video