Teach Kids About Money in a Financial Crisis
'There are many kids in dire economic circumstances who do just fine because their families are supportive,” explains Keith Crnic, an expert in parent-child relationships and psychology department chair at Arizona State University.
Teach Kids About Money in a Financial Crisis
'There are many kids in dire economic circumstances who do just fine because their families are supportive,” explains Keith Crnic, an expert in parent-child relationships and psychology department chair at Arizona State University. “It comes down to the quality of how parents manage the process for their kids and help them cope.”
Even in noncrisis situations, taking a mindful approach to talking about money will help you engage your children in talking about financial issues that might otherwise seem confusing, scary or simply boring. What’s more, involving your children in financial decisions can empower them to make sound financial choices in the future.
Perhaps you have lost your job, you are getting a divorce or medical bills have wiped out your savings. Your children need to understand how the financial implications will affect them, whether it will bring a big change such as moving to a new home or whether it merely requires a reworking of the budget that cuts spending on food, clothing, toys and activities.
Keep Your Cool
It’s hard not to explode or fall apart when you’re caught off guard by a big financial blow. “Try not to freak out in front of your kids, because they will freak out as well,” advises Crnic.
Make a Plan
Research avenues for support, including state and nonprofit assistance services, then map out possible solutions before you share bad news with your children. They will cope better with problems when they can see resolutions, says Crnic. (You may not be happy about taking a lower paying job or moving the family in with your parents, but these are resolutions nonetheless.)
Remind Your Children That You Have Each Other
You may not immediately know your next steps if you’re overwhelmed, anxious or stressed. However, you can reassure your children they still have you. “This is going to make them feel better even when they are losing a lot,” says Crnic. “If you have your parents, things are OK.”
Give Your Children Context
Particularly with young children, reading a book in which the characters’ experiences parallel their own can help normalize your situation as well as teach other money lessons. For instance, in “A Chair for My Mother,” author Vera B. Williams writes about a family that loses its home in a fire. Sesame Street Worksho