Editor's Note: This story originally appeared on Boldin.
While you should never try to keep up with the Joneses, it may be a very good idea to be friends with the Joneses.
A new study strongly suggests that the key to reducing poverty is friendship between the rich and the poor.
The research discovered that poor children who live in an area where people have more friendships across class lines significantly increases how much they earn in adulthood.
The study, “Social Capital II: Determinants of Economic Connectedness,” was massive. It looked at the Facebook friendships of over 70 million U.S. adults aged 25-44.
This new research is another proof point that mixing with people who have characteristics that you desire can be a good thing.
The Best Determinants of Economic Mobility
Cross-class friendships and economic connectedness are the best determinants of economic mobility.
It had been previously observed that some neighborhoods across the U.S. were better than others at achieving economic mobility, but researchers did not know why.
This new analysis finds that cross-class friendships are the biggest determinant in doing better in life. Cross-class friendships are more important than school quality, family structure, job availability, or a community’s racial composition.
And the idea was tested in multiple different ways, controlling for different factors. The results were the same: The more economic connectedness, the better an area is at lifting people out of poverty.
Cross-class friendships result in an increase of 20% in future incomes, on average.
Cross-Class Friendships Vary Across the Country
Cross-class friendships occur at different rates depending on where you live. They are more common in some metropolitan areas like Seattle, Minneapolis, Salt Lake City, the San Francisco Bay Area, and throughout the coastal Northeast.
But friendships between the rich and poor are less common throughout most of the Southeast. And there are more mixed results in the Southern California region and in the Chicago area.
The New York Times has a map showing the prevalence of cross-class friendships by ZIP code.
How This Research Might Apply to Your Life
If you are reading this, you are probably not a child, and you are less likely to be considered poor. So, you may think that the research doesn’t apply to your own economic struggles. However, there are parallels to consider.
Previous research has found that who you are friends with can influence your health and wealth. Studies have shown that people who have friends with high financial intelligence become more financially intelligent themselves.
Increase Your Financial Know-How
Money is a somewhat taboo topic in the United States, but talking about it — especially with people more knowledgeable than you — can increase your know-how. Learning how other people manage their personal finances can help you do better.
- Have you ever teamed up with a friend for workouts and seen better results from the camaraderie? (If you have friends who work out, you are more likely to work out.)
- Has networking helped your career?
- Did you ever get great tips and support for raising kids on the playground after school?
You definitely don’t want to keep up with the Joneses. You want to stay true to your own values, goals, and priorities. However, you may learn valuable lessons from the Joneses that can help you achieve the life you want to live.
Why Do Cross-Class Friendships Influence Economic Outcomes?
The research does not delve into the why, but people theorize that exposure to different economic classes can expose you to useful ideas.
When you talk to different kinds of people, you gain tidbits that can help you succeed.
People like you know roughly what you know. People unlike you will expose you to new ideas, concepts, ways of thinking, and more.
What Impact Do Cross-Class Friendships Have on the Wealthy?
There is no evidence that cross-class friendships harm the economic prospects of the wealthy.
And some sociological research suggests that this type of relationship can increase empathy and creativity through exposure to different ideas and experiences.
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