Risk-taking behavior in monolingual vs. bilingual children: an experiment

Abstract: The effect of language on economic behavior is an area of research recently brought to public attention. Previous studies have touched upon the effect of language on risk attitudes, though this behavior in children has been studied to a lesser extent. Observing differences in language skills in children may indicate differences in developmental gains, and therefore an understanding of economic concepts. In a controlled experiment, conducted amongst a sample of 20 monolingual and 20 bilingual children aged 8-12-years old in Stockholm, risk-taking propensity was observed. The results indicate that bilingual children presented more risk averse behavior, and monolingual speakers of languages with weak future time references were similarly so. In accordance with previous research, girls were generally more risk averse than boys, and older children more so than younger. Supplementary background information was gathered, though not for the complete sample, which rendered some inconclusive results, but also indications of parental background having effects on risk attitude. As this generation’s children are becoming more influential in families’ consumption patterns and beginning to make their own financial decisions, an awareness of the relationship between language and economic behavior could lead to implications in education and policy making and an understanding of how economic behavior develops over time.