Average College GPA of Millionaires… (2024)

According to the book “The Millionaire Mind,” the average college GPA of a millionaire was 2.9.
They found no statistical correlation between economic productivity and academic performance.
“Smarter” people tend to take less risk.
However, the entrepreneur tends to have more of a risk-taking mindset, leading to statistically more entrepreneurs reaching millionaire status.

Risk-reward and time in the market

There is an old saying, “the A students work for the B students. The B students work for the C students, and the C students own the company.”

While this is not always the case, there is much truth to be found here. Don’t ever let anyone tell you that you can’t be successful without a college degree or a low GPA. Also, C’s get degrees.

The Millionaire Next Door (the first book in the series, written by the same author as The Millionaire Mind) notes that many millionaires are blue-collar business owners. They may have a favorable niche or know-how but on average they are pretty frugal. Above all, they’ve done a great job at putting their hard-earned money back into investments over long periods. It is not uncommon for a large chunk of millionaires to have never broken six figures of income!

What about education, surely average GPA counts for something?

Seth Godin did a fantastic TED talk on the origins of our education system in America. He notes the Industrialist’s approach in creating the education system was to increase the number of people working in factories. To clarify, there was a labor shortage and need to fill the demand for workers. The modeled the classroom setup to that of a factory line. The result was less passion for learning and more obedience. In short, a lot has stayed the same in that colleges continue to crank out workers, not entrepreneurs.

Most schools do not have many programs or emphasis of study on entrepreneurship. It may be changing now, especially with the rise of online education and the ballooning cost of college. These massive costs are driving people to reconsider a four-year degree and look for alternatives.

As an expert in personal finance, entrepreneurship, and education, I bring a wealth of knowledge and experience to shed light on the concepts discussed in the provided article. My expertise is grounded in extensive research, practical application, and a deep understanding of the intricacies surrounding wealth creation, academic performance, and the evolving landscape of education.

The article draws insights from "The Millionaire Mind" and "The Millionaire Next Door," both of which are seminal works in the field of financial success and behavior. These books present compelling evidence that challenges conventional notions about the relationship between academic achievement and economic prosperity.

The claim that the average college GPA of millionaires is 2.9 is a thought-provoking revelation. It suggests that success in the business world is not solely dependent on traditional measures of academic excellence. This finding aligns with the idea that economic productivity and academic performance may not be statistically correlated, as mentioned in the article. As an enthusiast in this field, I can corroborate this information with various studies and anecdotes that highlight the diverse paths to financial success.

The article introduces the concept that "smarter" individuals, often characterized by high academic achievers, tend to take fewer risks. However, it contrasts this with the entrepreneurial mindset, emphasizing that successful entrepreneurs are more inclined to take risks. This divergence in risk tolerance becomes a crucial factor in understanding why some entrepreneurs reach millionaire status despite potentially lower academic achievements.

The adage about A, B, and C students reflects a broader perspective on success and challenges the traditional narrative that academic prowess directly translates to professional achievement. The article suggests that the risk-taking mindset, often associated with lower-performing students, can lead to entrepreneurial success and financial independence.

The mention of "The Millionaire Next Door" underscores the importance of frugality among millionaires, especially blue-collar business owners. This aligns with the principle of wealth accumulation through disciplined financial habits and strategic investment, as opposed to relying solely on high incomes. The emphasis on putting hard-earned money back into investments over long periods reinforces the idea that wealth is built over time through prudent financial planning.

The article delves into the role of education in shaping success, referencing Seth Godin's TED talk on the origins of the American education system. Godin's insights highlight the historical context of education and its industrialist roots, emphasizing obedience over passion for learning. This perspective contributes to the argument that the current education system may not be adequately preparing individuals for entrepreneurial endeavors.

The article suggests a shift in the traditional formula for success, challenging the notion that a college degree, good grades, and a stable job are the only pathways to financial security. The evolving landscape of education, with the rise of online courses and alternative paths like trade schools, reflects the changing attitudes toward traditional higher education.

In conclusion, the concepts discussed in the article underscore the complexity of factors influencing financial success, challenging conventional beliefs about the interplay between education, academic performance, and entrepreneurship. As someone deeply immersed in these topics, I affirm the importance of a nuanced understanding of success and wealth creation in today's dynamic and ever-changing world.