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The Neuro-Cognitive Foundations of Early Financial Socialization
The Neuro-Cognitive Foundations of Early Financial Socialization
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Financial literacy in childhood is more than an academic pursuit—it's a cornerstone of long-term economic stability. As digital transactions replace physical currency, children face increasing complexity in understanding value and exchange. Research indicates that neurological capacity for basic economic concepts emerges as early as age three, with spending habits largely formed by seven.
The prefrontal cortex, governing decision-making and delayed gratification, develops progressively through adolescence. Early exposure to money concepts serves as cognitive scaffolding, preparing children for adult financial realities. This neurological interplay underscores the critical window for structured financial education during formative years.
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