Poverty is another factor that reduces brainpower by up to 13 IQ points.

Poor concentration: Poverty reduces brainpower needed for navigating other areas of life

Poverty and all its related concerns require so much mental energy that the poor have less remaining brainpower to devote to other areas of life, according to research based at Princeton University. As a result, people of limited means are more likely to make mistakes and bad decisions that may be amplified by — and perpetuate — their financial woes.

The paper, "Poverty impedes cognitive function," was published Aug. 30 by Science. The work was supported by the National Science Foundation (award number SES-0933497), the International Finance Corporation and the IFMR Trust in India.