Prof. Nevzat Tarhan: “Children should be taught budget management by the age of 10”

Psychiatrist Prof. Nevzat Tarhan stated that psychological resilience can be developed at an early age and said, “Children should be taught budget management by the age of 10. After that, it is too late. A child should not immediately get everything they want. When they do their homework, you should give them chocolate, but the main goal is to teach patience. This helps them develop the ability to delay gratification.”

Emphasizing that money is a form of power, Prof. Tarhan said, “Money can be a power that sets us free, but it should not be at the center of life. It should serve as a tool, make life easier, and prevent dependence on others.” Defining what it means to be wealthy, he added, “A wealthy person is not someone who has many things, but someone who needs little. If a person can be content with what they have, they are rich. No matter how much someone earns, if they are not satisfied with what they have, they cannot escape the feeling of poverty.”

President of Üsküdar University and Psychiatrist Prof. Nevzat Tarhan discussed the psychology of money in his program Akla Ziyan with Nevzat Tarhan aired on EKOTÜRK TV.

The first emotion is fear, the first need is shelter

Prof. Nevzat Tarhan stated that a person’s most basic motivation is “the desire to feel good” and said, “The need to feel good is a biological drive. When a child comes into the world from the womb, the first emotion they feel is fear. The womb is a comfortable environment where everything is provided, but as soon as the baby enters the world, cold air hits, and they cry. The first reaction is fear. Then comes the need for shelter. Even the mother’s scent comforts the child. In other words, human life is based on the need for comfort and security from the very first moment.”

The brain’s reward system produces short-term pleasure

Explaining that the brain’s reward mechanism operates through dopamine, Prof. Tarhan said, “The brain’s reward system works in a dopamine cycle. All addictions and virtual habits exploit this mechanism. Dopamine provides short-term pleasure but does not offer long-term satisfaction. Fulfilling a desire or need is not the same as achieving lasting contentment. A person should not settle for momentary happiness but should strive to feel good through a long-term search for meaning.”

Psychological resource management is essential

Emphasizing that feeling good requires a strategy, Prof. Tarhan continued his remarks as follows: “A person should not deceive themselves by saying ‘I feel good right now.’ They must invest mentally to ensure they still feel good five or ten years later. This requires setting goals and creating a roadmap. Just as we manage financial resources, every person also has psychological capital, which includes emotional, social, and spiritual assets. These too must be managed wisely. Humans are conscious beings, possessing not only self-awareness but also awareness of their surroundings, the world, the universe, and God. Those who manage their resources with this awareness make a difference.”

Children should be taught budget management by the age of 10

Prof. Tarhan emphasized that psychological resilience can be developed at a young age and said, “Children should be taught budget management by the age of 10. After that, it is too late. A child should not immediately get everything they want. When they do their homework, reward them with chocolate, but the goal is to teach them how to wait. This develops the ability to delay gratification. Delayed gratification enables the sustainable release of dopamine and helps children build resilience.” Drawing attention to a common mistake made by parents, Prof. Tarhan said, “When parents give their child whatever they want as soon as they cry, it satisfies the parents’ ego, but the child learns nothing. They fail to distinguish between needs and wants, which increases the risk of addiction later in life.”

Credit cards provide immediate pleasure but conceal debt

Evaluating modern consumption habits, Prof. Nevzat Tarhan discussed how individuals relate to money, pleasure, and relationships. He emphasized that the ability to delay gratification, which should be learned in childhood, is critical for managing both financial and emotional capital. Highlighting that modern people often pursue tangible pleasures, Prof. Tarhan said, “People fail to distinguish between tangible pleasure and abstract satisfaction. When you shop with a credit card, you do not feel the money leaving your hand. There is an immediate pleasure, but the future debt is ignored. However, if a person learns abstract satisfaction, which delays today’s spending for a future goal, they learn to manage their emotions rather than their impulses. Tangible pleasure is linked to dopamine, while abstract satisfaction is linked to serotonin.”

A child should not be raised just to be happy, but to be prepared for life

Reminding that children’s financial awareness should begin developing at an early age, Prof. Nevzat Tarhan said, “Children should be taught budget management from a young age. They should not get things easily; they must learn to delay their desires. The biggest mistake parents make is saying, ‘What could be more important than my child?’ and giving in to every demand. A child should not be raised only to be happy, but to be prepared for life. When the parents are no longer there, they should be able to steer their own ship.” Prof. Tarhan pointed out that children can easily fall into the traps of brand and status and emphasized that money is not only a means of exchange but also a psychological symbol.

Trust is the greatest capital in business

Stating that trust is the fundamental capital both in human relationships and in business, Prof. Tarhan said, “Trust is the greatest capital in trade. Individuals or institutions that are open, transparent, and accountable achieve sustainable success. Once trust is lost, everything is lost.”

If we desire what we do not need, we are on the wrong path

Addressing spending habits, Prof. Tarhan said, “First, do I desire something I do not need? Second, am I content with what I already have? If the answer to both questions is no, that person is on the wrong path. Spending on unnecessary things causes guilt, and dissatisfaction leads to an endless desire for more. This can eventually turn into shopping addiction.”

Money gives a sense of freedom

Prof. Tarhan stated that people who earn enough income tend to feel free: “Money gives people a sense of liberation because it makes them feel successful, powerful, and of high status. If a person can meet their basic needs and is not dependent on anyone, they feel free. However, if they start living on debt, the fear of loss begins to control their life.”

Pathological stinginess is born of fear

Explaining the psychological dimension of one’s relationship with money, Prof. Tarhan said, “There are people who unplug the refrigerator at home or save even on their child’s milk or diapers. This is pathological stinginess. Such a relationship with money is driven by fear. The way a person relates to money is a reflection of how they relate to life itself.”

Some people see money as a business card

Prof. Tarhan stated that some individuals use wealth as a means of demonstrating power: “Some people see money as a business card. They drive luxury cars and live ostentatiously, but they are actually deep in debt. They live only to send the message, ‘I’m still standing, I haven’t fallen.’” Using the construction of the Dolmabahçe Palace in the late Ottoman period as an example of poor investment mentality, Prof. Tarhan said, “In the 1850s, the Ottoman Empire took on enormous debts, but these were spent on the Dolmabahçe Palace, which brought no return. Built with gold at that time, its value today would be equivalent to the Eurasia Tunnel. The palace was built merely to say ‘We’re still standing,’ but it ultimately accelerated the decline of the Ottoman Empire.”

Money should not be at the center of life, but it should be a tool

Emphasizing that money is a form of power, Prof. Nevzat Tarhan warned that when it becomes the center of life, it can enslave a person. He said, “Money can be a power that sets us free, but it should not be at the center of life. It should serve as a tool, make things easier, and prevent dependence on others. However, a person who lives in debt and carries open financial risks loses sleep and endangers all their savings.” Addressing budget management in companies, Prof. Tarhan said, “Independent auditors check whether companies are wasting resources, because saving and efficiency are essential. Efficiency means doing things right, while effectiveness means doing the right things. Without these, resources are wasted.” Explaining that the word “economy” originates from French and carries the meaning of saving, Prof. Tarhan added, “However, the Arabic term iktisat comes from the root meaning ‘purpose.’ In other words, define your goal first, then spend accordingly. A person without a goal makes greedy investments and misuses money as a compass.” Defining the concept of wealth, Prof. Tarhan said, “A wealthy person is not someone who possesses many things, but someone who needs little. If a person can be content with what they have, they are rich. No matter how much a person earns, if they are not satisfied with what they have, they cannot escape the feeling of poverty.”

High-trust societies prosper

Highlighting that the investment climate is directly related to trust, Prof. Tarhan said, “As Francis Fukuyama pointed out, high-trust societies can foresee the future. Where freedom exists, people make long-term investments, and the system grows. However, in low-trust societies, resources are spent on defense and building shelters. That is wasteful.” Stating that individuals and institutions should prioritize risk analysis to prepare for economic crises, Prof. Tarhan concluded, “We generally start managing crises only after they happen, but we fail to conduct risk analysis. Yet, with proper risk analysis, preventive measures can be taken before a crisis occurs. This is vital both on an individual and societal scale.”