Money Troubles: How to Tell Your Kids That Money is Tight

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By Lilian Scott , Parent Herald Dec 22, 05:45 pm

The pandemic has not only been a public health struggle as families around the world experienced money troubles because many parents lost their jobs. While going through personal financial woes is part of adult life, even the kids in some families are affected by this problem.

Kids are very perceptive and can pick up on the stress of their parents. Thus, it could be better and healthier for moms or dads open up and sit down with children to let them know and understand why money is tight.

Here are some ways to talk about money troubles to the kids:

1. Be honest but don't overwhelm the children.

A simple and brief idea about keeping expenses with the family budget will be enough to help the kids understand the situation. Perhaps start with why the family can't go on vacations for a while or why there will be no buying of expensive toys or clothes that the kids want.

According to The Balance, parents do not need to have a serious conversation about money with the young ones, even if this is a serious problem, so be sure to use a kind, inviting and comfortable tone when explaining your financial woes. Explain the problem clearly as well since some children, especially the younger ones, could be quite literal in their understanding.

Also, reassure the children that it's not going to be this way forever because families can bounce back from financial hardships. Their parents could always find better jobs or opportunities. Let the kids know as well that the family is not the only one having a hard time with money.

2. Maintain your cool when setting limits.

Instead of saying "no" to the kids' requests, keep things cool by explaining that they can't have what they want "right now" but they can probably put these on their birthday wishlist for next year. Be patient when telling the children that bills should be paid first but perhaps try to set up a small rewards system, such as a sticker or token for chores accomplished at home as a motivation.

Explore other ways to have fun but low-cost family activities where parents don't have to buy or spend anything. This could be a good opportunity as well for parents to start teaching their kids, especially those in their pre-teens or teenage years, to save or come up with ways to earn money so it will empower them and give them a sense of control and direction.

3. Protect your kids from upsetting instances with money.

Parents should never have arguments about money in front of kids or they should not let them witness an angry landlord demanding the rent or threatening eviction. Children might feel guilty and feel they are to blame for their parents' money troubles.

As much as possible, don't give kids the worst-case scenarios but be realistic about what's going on. Provide only details that they can grasp based on their age. According to psychologist Katrina Lindsay, it's good to keep the children informed but they should not feel the stress and pressure of the families' financial woes.