Money is an important feature of our life. We need money to sped on: food, our dream holiday, hobbies etc. But what money could do to child’s well-being? 

Lack of money – poverty

Poverty leads to circumstances that affect the way child’s brain develops. Chaya Kulkarni, a director of Infant Mental Health Ddivision at the Hospital for Sick Children share that actually just being poor does no’t mean bad outcomes for a child. As she notes, often what happens is that poverty come with a lot other things that affect parents such as: mental health problems, inability to find job, housing problems etc. Those things create stress to the parents and might impact the parent’s availability for their children. The lack of communication and parental attention is what actually negatively impacts the brain development of the child. Watch the interview with her (on your right) and learn more interesting facts about the topic.


Having money and spoiling your kids

While poverty can have diverse impact on child’s well-being, having money as well is not necessary a good thing. When wealthy parents feel guilty for not spending enough time with their kids they tend to buy a lot of toys or expensive things that children actually might not need. This however does not make the child happier and does not contribute to their overall well-being. On the contrary – it spoils the children and teaches them not to value money or to keep on wanting and asking things. Underneath you find a video that discusses the importance of teaching your child about the value of money. 

“Teaching kids money management” is an useful inspirational video where a best seller (financial writer) David Bach is interviewed. He explains that teaching your children how to value money could start with as little as giving your change when you get back home. As he says: “ I gave money my son Jack to put in his piggy bag (money box). What we talk about with him is that when he fills up his piggy bag we are going to give some money to charity and he will help to make somebody’s life better with that money. We will take the money down to a the bank and open savings account.”

For more information on the money topic we suggest you to read:

Ehrensaft D. (1997) Spoiling Childhood: How well-meaning parents are giving children too much. New York: Gulfor Press

Chugani, H.T., Behen, M.E., Muzik, O., Juhasz, C., Nagy, F., & Chugani, D.C. (2001). Local brain functional activity following early deprivation: A study of postinstitutionalized Romanian orphans. NeuroImage, 14, 1290-1301.

Diamond, M.C. (2001). Response of the Brain to Enrichment. Anais da Academia Brasileira de Ciências, 73(2), 211-220.