This issue is perhaps very particular to my family, but I think such information can affect kids in very different ways. I was always the "good student" growing up, and my parents told me from a fairly early age that they would fund my education. Well, unforeseen events happened and resulted in us being poor by the time I went to university, but thankfully, my whole education was paid for by scholarships and other need-based aid. Although there were probably risks to me assuming that my education would ultimately be paid for, I would say in my case, it all worked out, and my effort and interest in studies was never really contingent on any financial aspect of it. The way I saw it, being told I would be covered gave me more security to pursue my academic goals.
With my brother, things didn't go as smoothly. He had dreamed of going into ROTC and subsequently the military since he was little. He was (and still is) hyper competitive in spirit, although he's the type who is more motivated by the reward and doesn't necessarily want to put in the work for its own sake. It was obvious that because my education was fully paid for, he felt it was only fair that his would be too, and he even expressed multiple times with cynicism throughout high school that there would be no point to him trying if someone didn't fund his education. He hated the idea of having to take out loans that he would need to pay back. Thankfully, he did get his grades up and got accepted into a good ROTC school on a full ride military scholarship. Things were going really well for him and he was on track to fulfill all his dreams and achieve a similar level of success to mine, but he developed a partying habit, got in with the wrong crowds, and ended up getting kicked out of his program following a DUI. As a result, what would have been a full ride with some minor service contingencies turned into a pile of debt with no degree or job to show for it. Unfortunately, his life has really only spiraled further out of control since then. He constantly lashes out at the world as if he was robbed of his opportunity, even though he did it to himself. He resents the fact that he didn't have stronger financial guarantees, to the point that he has no plan for repaying the debt and prefers to blow his low service wages on short-term thrills and toys he can't really afford. In his case, I think the mere possibility of others paying for his education was mental poison, and while he may have fallen on hard times regardless, I think he might have been better off under the assumption that he would have to pay his own way through skill, in order for him to have skin in the game. Of course, knowing that I didn't made that unacceptable in his mind.
Meanwhile, my sister was not the least bit interested in academics, had no aspirations for a degree of any kind, and wanted to pursue a singing career. Of course, that's somewhat of a pipe dream, especially the way she imagines it, but I think we all underestimated just how powerful the allure was for her. My father agreed to pay for her local community college courses while she decided what to do, and she quit after a year, not even receiving her associate's degree. Since then, she has actually made some slight progress on a legitimate music career, albeit not enough to sustain her without a proper day job. In her case, I don't think money really influenced her either way. Had she been given no money for education, I think she'd be in about the same position she is now, working clerical jobs at banks and schools while pursuing music on the side. Being given the money for some classes at the very least gave her some exposure and assured her that just wasn't the path she was interested in.
Kids are just very different. I would take whatever anyone says about their personal experiences with a grain of salt. I grew up with 2 siblings who were very different than me when it came to academics, and I'm sure there are all kinds of other variations of young students as well, ranging from troublemakers to child prodigies. Give yourself time to figure out what your children's specific needs are, and be very cautious when it comes to leaking information intended for one to the others, as they can take things completely differently and develop feelings of envy and resentment.