How to Talk to Your Kids about Financial Crisis
Hard economic times can come to anyone at any time. The general economy in our country right now does not have a bright outlook. Kids know when times are tough or when something is wrong. You don't want to hide hard times from your kids. Don't shelter them, but give them reassurance that you'll weather the economic storm. When you are in a financial crisis, it's time to tell you kids what's up and teach them how to pull through when it happens to them. Here are some things to remember when talking to your kids about financial crisis:
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- Be proactive: Address financial crisis before your kids have a chance to detect that something is wrong. If you can let them know that you'll have to cut some spending and spend more time at work, they'll at least know before-hand that they may not get everything they want and there is a reason why.
- Be open: Your children have big ears and even when you don't let on that there is something wrong, generally they know. It is better to be open and honest with your kids when things are tight rather than let them imagine it is worse than it is.
- Don't use sarcasm: Kids take what you say very literally, so don't joke around or use sarcasm when you are talking to them about finances. If you say you're going to end up on the street, they'll think you mean it and it will scare them. Being pessimistic about your future only brings your kids down. Talk seriously, but hopefully about financial problems with your kids.
- Turn off the pessimism: When you turn on the TV during financial uproar, you are inundated with the pessimistic outlook of the media who are always looking for the worst to happen. It is important to be informed about what is going on, but you also want to be hopeful. It's hard to stay upbeat and positive with your kids when you are being hammered at with pessimism all day.
- Give it to them straight, but simply: Kids don't need to know all the details of how bad things are looking. They do need to know that they'll be provided for though. Give them the bad news, but keep it simple. Be reassuring so they don't panic. Let them know that things always get better.
- Have a plan: One of the most important things you can do when talking to your kids about financial crisis is to have a plan. If you've lost your job, you can tell your children how you plan to go about getting a new one or that your spouse is going back to work until you can find a new one, or that you have enough money in the bank to last X amount of time. Having a plan is reassuring to children that they'll be okay.
- Give them encouragement: Kids are naturally empathetic and concerned about their parents, so let them know what they can do to help. Implementing money-saving practices for the whole family can be a lot easier if the whole family is on board. Saving energy, taking shorter showers, making birthday and Christmas lists more budget friendly, and eating leftovers can all make a kid feel like they are doing something to help. The more your child can help, the more secure they will feel about financial crisis.
