Friends or Fortune: How Your Teenage Social Circle Impacts Your Future Earnings

Reese Marlowe in Mind & Education August 2025 • 4 min read.

"New research reveals the surprising link between adolescent friendships and adult financial success. Could your high school social life predict your career trajectory?"

We all remember the social dynamics of high school: the cliques, the friendships, the parties, and the seemingly endless quest to fit in. But what if those formative years weren't just about navigating teenage angst, but also laying the groundwork for your future financial well-being? Recent research suggests that the connections we forge during adolescence can have a surprising and significant impact on our earnings as adults.

It's easy to dismiss teenage friendships as fleeting and inconsequential. However, these relationships play a crucial role in developing essential social skills, shaping educational pathways, and influencing our overall outlook on life. As we navigate the social landscape of adolescence, we learn how to communicate, collaborate, and build relationships – skills that are highly valued in the professional world. Moreover, our friends can influence our academic choices, career aspirations, and even our access to future opportunities.

A groundbreaking study using data from the National Longitudinal Study of Adolescent to Adult Health (Add Health) has uncovered compelling evidence of the link between adolescent friendships and adult earnings. The researchers delved into the social networks of teenagers, tracking their friendships and later analyzing their earnings as adults. Their findings reveal that having more friends during adolescence can lead to a substantial increase in earnings later in life.

Decoding the Dollars: How Friendships Translate to Dollars

Teenage friends walking towards a future cityscape, symbolizing the impact of adolescent relationships on career success.

The researchers acknowledge that the relationship between friendships and earnings is complex and multifaceted. It's not simply about popularity equating to wealth. Several factors contribute to this intriguing connection, and understanding these nuances is key to unlocking the true value of adolescent social networks.

One of the primary mechanisms at play is the development of social skills. Adolescence is a critical period for honing our ability to interact effectively with others, navigate social situations, and build rapport. These skills are highly transferable to the workplace, where they can lead to improved communication, collaboration, and leadership abilities. Individuals with strong social skills are often better equipped to network, negotiate, and build relationships with clients and colleagues, ultimately leading to greater career success.

Social Skills Development: Teen friendships nurture communication, collaboration, and leadership skills vital for workplace success.
Educational and Career Choices: Friends influence academic paths and career aspirations, opening doors to new opportunities.
Networking Opportunities: A wider social circle can provide access to valuable connections and job prospects in adulthood.
Mental Well-being: Supportive friendships contribute to emotional health, reducing stress and improving overall life satisfaction, which can positively impact career performance.

The study also sheds light on the types of friendships that are most beneficial. While having a diverse social circle is generally advantageous, certain qualities in friends can be particularly impactful. For example, friendships with individuals who are academically driven or come from supportive families can provide a positive influence on educational attainment and career aspirations. Similarly, friendships with individuals who possess strong social skills can help us develop our own interpersonal abilities and expand our social network.

Investing in Connection: Nurturing Social Skills for a Brighter Future

The findings from this research highlight the importance of fostering positive social environments for adolescents. Parents, educators, and policymakers should recognize the long-term impact of social connections and prioritize initiatives that promote social skills development, encourage positive peer relationships, and create opportunities for students to build strong networks.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2210.09426,

Title: Party On: The Labor Market Returns To Social Networks In Adolescence

Subject: econ.em

Authors: Adriana Lleras-Muney, Matthew Miller, Shuyang Sheng, Veronica Sovero

Published: 17-10-2022

Everything You Need To Know

How exactly do teenage friendships translate into higher earnings later in life, according to the research?

The research highlights several mechanisms. First, it emphasizes the development of social skills such as communication, collaboration, and leadership, which are crucial in the workplace. Secondly, friends can influence educational and career choices, thereby opening doors to opportunities. Moreover, a broader social circle provides more networking possibilities and access to valuable connections. These factors collectively contribute to increased earning potential. The National Longitudinal Study of Adolescent to Adult Health (Add Health) study supports these findings.

What specific social skills, developed during adolescence, are most valuable in the professional world and how do they contribute to career success?

During adolescence, individuals hone essential social skills like communication, collaboration, and leadership. These are highly transferable to the workplace. Effective communication allows for clear exchange of ideas; collaboration fosters teamwork and shared goals, and leadership enables guiding and motivating others. These skills enhance networking, negotiation, and relationship-building abilities, leading to improved career success. These skills are highlighted within the context of the National Longitudinal Study of Adolescent to Adult Health (Add Health).

Beyond the number of friends, what qualities in those friendships seem to have the most impact on future earnings and why?

While a diverse social circle is beneficial, the study suggests that certain qualities in friends are particularly impactful. Friendships with academically driven individuals often influence educational attainment and career aspirations positively. Similarly, friendships with those possessing strong social skills can help develop interpersonal abilities and broaden the social network. Supportive friends also contribute to mental well-being, reducing stress and improving overall life satisfaction, which can then impact career performance.

How can parents, educators, and policymakers use this research to benefit adolescents and their future financial success?

The research underscores the importance of fostering positive social environments for adolescents. Parents should encourage positive peer relationships and promote social skills development. Educators can prioritize initiatives that create opportunities for students to build strong networks. Policymakers can recognize the long-term impact of social connections and support programs that facilitate these interactions, ultimately contributing to a brighter future for adolescents. This can include creating programs to foster collaboration, communication and other key skills.

What is the core concept explored in the study, and what are the implications of dismissing teenage friendships as 'fleeting and inconsequential'?

The core concept is the surprising link between adolescent friendships and adult financial success, as revealed by the National Longitudinal Study of Adolescent to Adult Health (Add Health). Dismissing teenage friendships as fleeting and inconsequential overlooks their crucial role in developing essential social skills, shaping educational pathways, and influencing overall outlook. This dismissal can hinder the recognition of the long-term impact of these formative relationships on future earnings and overall well-being, potentially missing opportunities to nurture positive social environments and support adolescent development.