In today’s world, anything can change in a flash: people are losing their jobs, inflation is at an all-time high, and certain emergencies can knock on your door anytime. Even if we don’t realize it, children can feel the stress their parents are struggling with. Therefore, you need to know how to talk to kids about financial difficulties.
You might think keeping your children in the dark about financial news is the best choice to make. However, the stress you’re going through could somehow pass to them.
You and your children will be happier when you engage in adult-appropriate, honest discussions regarding what’s happening and also about ways to get through financial challenges.
Ways to talk to kids about financial difficulties
What to Say
Be open with your children; only divulge what they need to know. Don’t overwhelm your older kids with numerous details or fears that could cause anxiety. Please keep it to short explanations and be transparent regarding any changes made.
Let them know what changes are planned (or made) -and how the changes will affect them.
Talk About the Reason for the Change
If you’ve lost a job, inform them that you’re currently searching for a new job, but the process might take time. If you’re self-employed and your business is struggling, inform them that, in general terms, you’re looking into ways to boost the business. There’s no need for a lot of details, but just an assurance that you’re taking action to address the issue.
Talk About Lifestyle and Spending Adjustments
Family vacations may need to be cut, and spending on additional expenses such as clothing, dining out, and entertainment could be cut significantly. Make these suggestions as solutions to the problem rather than as unavoidable outcomes. Inform the children that cooperating with these changes is a way to assist the situation.
Consider Your Children’s Ages
The way you talk to children will differ as per their age group. These points may help.
- Ages 5 and below. Children this age do not understand what money is. Introduce it by explaining the importance of various coins, the fact that parents are employed to earn money, and the fact that the money can be used to purchase things families require.
- Elementary school children. Here, focus on the difference between needs and wants. Food, transportation, and school are needs, whereas a new gaming console and a trip to an amusement park are wants.
- Teenagers: They are more aware of your struggles when money is tight. Resolve any misconceptions they may have and, if possible, reduce their exposure to news to lessen anxiety.
Let Kids Guide the Conversation
No matter what stage of life they will be focused on, these family financial struggles impact their lives personally.
A 7-year-old may be concerned about his daily trip to the ice cream shop, while your teenager may be worried about their school fees or if they need to find work to support their family.
Let them put their questions that will guide the conversation. It will bring their fears to the surface and allow you to discuss the issues.
It’s a Learning Opportunity
Family financial struggles can provide a perfect opportunity to teach children how to manage their money.
You can talk about budgeting, money mistakes, comparing shopping in order to cut costs, searching for discounts and sales, establishing an emergency fund, and the use of credit cards.
Don’t Let Shame Get to You
I can understand how shame can get in your way when you talk to kids about financial difficulties.
It’s like admitting, as a parent, we’re not able to provide for their demands. The feeling of shame can be powerful, and it makes us not discuss the finances with our children or anyone else.
Know that almost every family out there goes through this phase at some point in their life. Let go of this feeling, and push yourself to have this conversation with your kids.
Keep the Communication Active
Discussions about money issues in the family shouldn’t be just a once-in-a-while event. It is important to let your children know that they can contact you anytime. Regular communication with them will make them feel at ease and alleviate their anxieties. Once you’ve had the discussion open, it’s easy for parents and children to discuss it again.
Stay Positive
Financial difficulties can be stress-inducing, but no matter how anxious you might be, your children must feel secure that they are being taken care of by their parents.
If your kids express concern about not being able to purchase food or becoming homeless, discuss strategies you’ve considered, including getting assistance from the programs of the community or government or relocating to a friend or family member temporarily.
Cultivate Closeness
Stress from your financial situation can lead you to consider withdrawal. Still, your children depend on you more than ever before. Whatever your schedule is, make sure you give extra time to your kids.
Play a game with your family, have movie nights, or cook dinner together. Enjoy other exciting and cost-free activities together as a family. The more secure you can ensure your children’s routines are maintained, the more secure they’ll feel.
Spending time together doing the things that you all love will allow your children to feel more involved and confident. They will be assured of being able to help with their everyday tasks and knowing that you’re there to look after their needs.