Young Children, Brain Plasticity, and Financial Literacy The Perfect Combination for Future Success

As we have already told you in previous articles, childhood is the best time to begin accumulating tools and knowledge that prepare the individual for the rest of their life, which in itself is of great importance, but if we talk about money even more so, because what is at stake is its stability and future success.

Given this situation, it is logical to think that it is never too early to start this process. We know this from study and from practical experience (that's why we assure you so accurately), but if you still find it hard to believe that between 3 and 6 years old is the perfect time to start your children's financial education, ... Prepare to be surprised! Because today we will talk to you about the brain plasticity of a child of that age, and how it is related (for the better) to early financial education.

“The Earlier The Better”, A Scientifically Based Statement

Let's start from the very base, Brain Plasticity.  This concept refers to the ability of the human brain to change and adapt to different stimuli and experiences throughout existence, now pay attention because this is where the super data comes!: during the first years of life (especially between 3 and 6), our brain behaves like a sponge that absorbs everything around it, that is why at this stage children have an innate ability to learn and develop new skills, which allows them to capture, understand and fix knowledge quickly and efficiently. This is because brain connections are constantly being formed and reinforced, allowing the child to acquire new cognitive and emotional skills in an accelerated manner, so it is essential to take advantage of this moment to provide them with enriching experiences, including financial education.

Numerous scientific studies have shown that children who acquire financial knowledge from an early age have a greater probability of making financially sound decisions in their adult lives. Why? Because thanks to the plasticity prevailing at this stage, their brain is constantly developing. and is able to absorb and internalize this knowledge more easily, since it is not about stunning them with complicated terms about economics or how to invest in the stock market, but rather, instilling in them basic concepts such as the value of money, the importance of save, the need to manage wisely and spend responsibly.

We explain it to you in a more concrete way:  The stimuli related to financial education, such as learning to count money, identifying and differentiating coins and bills, understanding the value of savings and the importance of economic decisions, have a direct impact on brain connections of the child. Repetition and consolidation of these concepts over time strengthens these connections, allowing the child to develop a solid foundation of financial knowledge that will last for the rest of their life.

And it also comes with added value

As if this were not enough, it is important to highlight that financial education in early stages is not only limited to learning basic financial concepts. It also involves promoting socio-emotional skills, such as patience, self-control and the management of gratification, which are of vital importance in the changing and dizzying world in which our children will have to develop, and which they will develop widely thanks to the same brain plasticity.

Additionally, early financial training helps children develop critical cognitive skills, such as the ability to plan, make informed decisions, and conflict resolution skills. These skills, combined with a solid understanding of basic financial concepts, give them a significant advantage in their personal and professional evolution.

In summary, we can affirm that the impressive brain plasticity of young children represents a unique opportunity to provide them with financial education, taking advantage of this crucial stage of development to make a big difference in their future, since you will not only be helping to form financially responsible individuals, but that you will also be laying the foundations for them to have a prosperous future in all aspects.

So start right now, teach your children the value of money and the correct way to manage it! …Don't you know how to do it? …At Ploutuslab we are here to help you… Contact us!