It’s fairly well known that stress diminishes our decision-making because it consumes a large chunk of our mental resources. It’s perhaps no surprise, therefore, that research from Boston University finds that children from lower socioeconomic backgrounds are more inclined to take risks than their wealthier peers.

The researchers highlight how our environment has a significant impact on our willingness to take risks, either to gain something or to avoid losing something. They tested whether the likelihood that children would take risks was influenced by their economic circumstances.

Taking risks

Children aged between 4 and 10 were asked to complete various experiments designed to test their aversion to risk. They typically consisted of various tests whereby the children had to choose between keeping what they were given or risking it for a greater reward, with this coming with a risk that they might also lose some of what they’d originally gained.

The tests typically involved a spinning arrow attached to a card, which would determine whether the child would gain an extra prize or lose it. Prior to participation in the test, each child was assessed to understand their economic status according to information provided by both the children themselves and their parents.

The results clearly show that children from relatively well-off backgrounds were consistently less willing to take risks, regardless of whether this was to gain something extra or prevent themselves from losing something. The researchers believe that their findings are among the first to demonstrate how economic status can affect behavior and risk-taking in children.