How to Talk About Budgets with Your Kids
watch your words
Be age-appropriate.
Experts agree: the younger the child, the harder it is to understand finances—and process bad news. Kids under seven are likely to jump to wrong conclusions and blame themselves for changes in the family’s financial picture. Be conservative and positive with what you say. Schafer believes that Grade 8 and up is safe for sharing more. Even schools are using the current economic situation to teach about finance.
Speak honestly but optimistically.
With kids, tone trumps content. “If we come off as a pillar of support—not scary—chances are your kids won’t even react,” says Schafer. Even the heaviest news can be delivered lovingly and positively. Always let them know they’re loved and you’ll look after them, regardless. “Daddy lost his job but we’ll live with Uncle Steve for now and everything will be fine. Promise!”
make it a family adventure
Brainstorm activities you can all do.
Hiking, bike riding, stargazing: kids still understand the best things in life are free. Carson says, “Some of the ideas our kids used to come up with were brilliant. And when you involve them in finding solutions, you’re providing great life skills.”
Think creatively about spending.
Remember, things needn’t be expensive to be valued. Example? Go ask your kids whether they’d prefer mac and cheese or salmon tartare.
Steven Bochenek is a marketing writer and also writes editorial stories that are relevant to his life (lately to his children’s dismay).
cash confessions
Being totally truthful about your family’s financial situation depends on your child’s age and maturity, but you want to be straightforward and provide relevant information based on what you believe your children need to know (without scaring them), says Debbie Ammeter, vice-president of Advanced Financial Planning Support at Investors Group. So what do you say if your child asks why you are scaling back? Ammeter has these suggestions.
1 “As parents, our job is to make the best financial decisions for our family.”
2 “We pay attention to our financial situation and plan for the future.”
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