According to new study, even though, children aren't sure about the purpose of money, they do know it is very important.
The research published by the University of Minnesota's Carlson School of Management and University of Illinois at Chicago found that the act of handling money makes young children work harder and give less. The effect was observed in children who lacked concrete knowledge of money's purpose, and persisted despite the denomination of the money.
Money is a double-edged sword. It produces good outcomes in terms of concentration and effort, but bad outcomes when it comes to helping, taking, and donating, said co- author Kathleen Vohs.
Money is a vital component of cultural life, said Lan Chaplin, adding that the findings with children as young as 3 years old suggest potentially significant implications for achievement, generosity, and interpersonal harmony.
According to Vohs, the results with children mirror patterns from European, Asian, and North American adult samples. The similarities across developmental and cultural lines suggest common and basic properties in the psychology of money.
The study is forthcoming in Psychological Science.