How to Tell your Kids that Money’s Running Low

By Mrunal - Updated: December 13, 2018

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How to Talk to Kids about Money without Getting Them Down

Keeping kids happy is a top priority for you and your husband. While you do your best to fulfill their wishes, financial problems can be a setback. Does the thought of how to talk to your kids about money issues unnerve you? Trust us, your little ones are smart enough to understand if you explain things well!

A financial crunch in the family is when you do all you can to shield your brood from the brunt. You may think you’re being a good parent by not letting kids know that money’s tight, but keeping the truth from them isn’t really wise! Consider these ways of explaining the situation to them and you can be proud of the understanding we are sure they’ll extend.

How to Talk to Kids about Money without Getting Them Down

1. Prepare them

Even when finances are good, you must teach your children the importance of money. This way, it’ll be easier for them to understand problem situations. Introduce them to the concept of money and how important it is to use it wisely. It’s best to talk to them from a young age—three or four—as this is when they take their first steps into the world and are keen on learning new things.

2. Look for opportunities

Talking to your kids about money is a sensitive issue and you need to look for the right opportunity to talk about it. Say, if there’s a birthday, you can prepare simple yet tasty sweets at home instead of purchasing expensive ones and explain why you’re doing it. Let them know the importance of saving money even as the family indulges in treats from time to time. They’ll learn that you don’t always have to spend big bucks to enjoy life.

3. Be calm

It’s easier said than done, but try not to lose your calm when talking to kids about money problems. An anxious look on your face can freak them out and worsen the situation. They may get worried and fearful. Stay calm and composed while you explain the situation to them.

4. Don’t get into the nitty-gritty

Don’t over-explain things to your little ones else you’ll confuse them. The idea is to make them aware about the family’s financial condition without causing worries. Even in tense times, children don’t need to feel burdened. Only tell them that you can deal with things with a little help from them.

5. Teach them gratitude

Let your children know they can’t always have what they want. Set limits for them and teach them to be thankful for what they have. Tell them about people who live on a lot less and who don’t have the many things that they take for granted. Inculcate these values in them from the beginning and you’ll have children who can handle money problems better.

Exposing kids to parents’ money problems can be a challenging task. Remember that you can’t teach them the value of money overnight. Neither can you make them understand money troubles in a few minutes. Set the stage from a young age and if in financial soup, broach the topic carefully and in a manner that doesn’t overwhelm their young minds.

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