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IF YOU CHANGE THE STEERING WHEEL OF YOUR BICYCLE, WILL YOU BE ABLE TO DRIVE THE BIKE?
It takes a child 8 weeks to learn a new skill!
BUT, for older people it takes … Well, a lot longer because we all think that the older you get, the harder it is to learn a new skill. The truth is actually, that your brain is designed to never get old! We must just keep on learning new skills and stimulating it.
Neuroplasticity is the ability of networks in the brain to change through growth learning and reorganization. It is when the brain is rewired to function in some way that differs from how it previously functioned. These changes range from individual neuron pathways, new connections, to systematic adjustments. Almost as though we are remapping our brain.
Scientists used to think that Neuroplasticity was only manifesting during childhood, ] but recent research showed that many aspects of the brain can be altered right through adulthood and even in senior years. However, the developing brain in children exhibits a higher degree of plasticity than the adult brain.
Children in general are learning and forming new memories all the time, mainly because they also want to explore and are often curious.
The brain has therefore the ability to remodel itself and forms the basis of the brain's capacity to retain memories, improve motor function and enhance comprehension and speech, the ability to do calculations etc. It is this trait to retain and form memories that is associated with neural plasticity. And that is why many of the functions individuals perform on a daily basis, have to be stimulated.
Neuroplasticity is there for our entire lives. But the stages are different during our lives.
How does this all fit in with finances?
By giving your child experiences about money early in their lives, new pathways will develop in the brain. We must teach our kids at an early age how to manage pocket money and show them practical examples of how to spend it, on what to spend it and also the wonder of compounded interest.
What people generally agree on, is to give kids different experiences – different scenarios: let them experience profit AND loss. Let them work for something that they really want, and then show them how to save some of it. By doing this, they will learn a good habit of saving. Some of this money also can also be reinvested for another project.
Have different terms for different projects
A short term for a grown up is usually 1 - 5 years. But for a young child this can be a very long time and we do not want them to throw in the towel. Start with a week, then a month, then 3 months etc.
Also teach them that it is always better to give than to receive and that sometimes we have to give away some of our hard earned money to help other people. This is a good lesson to show them that there are people out there that are less fortunate.
And then very important:
Last but not least: Celebrate victories with them! This will motivate them for the next project!
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