UCL

UPDATE: Investigating How Children Learn Financial Abstract Concepts within Social Interaction

At University College London, we’ve embarked on an exciting research project that explores how children learn complex financial abstract concepts through naturalistic, social interactions. Our goal is to uncover how children aged 6-11 learn the meaning of novel abstract financial concepts—such as inflation or fraud—when they learn with their caregivers in a face-to-face conversational setting.

Key Research Insights So Far

Our study is ongoing, but the preliminary findings are promising:

• Brain-to-brain Synchronisation Predicts Learning: We found that when parents and children engage in a concept-learning game-style task together, their brain activity can become synchronised. This brain-to-brain synchrony, particularly in regions responsible for language processing and comprehension, correlates with successful learning of financial concepts.
• Multimodal Communication Matters: We’ve also observed that coordinative verbal behaviours (such as asking open-ended questions) play a crucial role in learning. These dyadic behaviours during interaction appear to predict children’s ability to learn novel financial concepts.
• Learning that Lasts: Children were able to generalise what they learned to new, real-world situations. Even when presented with new scenarios one week after the learning session, children demonstrated a sustained understanding of the concepts.

Why This Matters for Financial Education

View full research poster through link below in contact details

This research has practical implications for how we teach financial literacy in classrooms and at home. By understanding the importance of interactive, social learning—and how children’s brains respond to this engagement—we can develop more effective educational strategies:

• Interactive Learning Is Key: Instead of one-way instruction, fostering a two-way conversation where children can ask questions and engage in dialogue helps deepen their understanding.
• Role of Caregivers: Caregivers are not just facilitators but active participants in the learning process. Understanding this dynamic can help us create resources that empower parents to teach financial concepts more effectively at home.
• Generalisation and Long-term Retention: Our study shows that when children learn through real-life examples and social interaction, they are likely to retain and apply financial concepts over time to new, different contexts.

Next Steps

We will continue expanding the study to younger and older age groups (6-7 years and 10-11 years) to track the developmental trajectory of financial abstract concept learning. This work will help educators better understand how learning styles evolve with age and how to tailor financial education accordingly.