“How can I talk to my kids about the economic crisis?” It is a common question that most parents face today. As prices on consumable goods rise, from food and gas to the cable bill, and families feel themselves pinched, even the youngest children are starting to notice that things around them are changing. Neighbors and friends may be moving away, favorite stores and restaurants may be closing, and everyone seems to have to sacrifice something they enjoy just to get through this time.
Parents should see this time in our history as a teaching moment, but the lessons should be age appropriate and the discussion reassuring. Plus, if you ignore this important discussion, kids may fear that the situation is bigger than it is.
Here is some solid advice on how to talk to your kids about the economic crisis.
1. Adults often exaggerate and joke, especially when stressed about things such as money. It is important to remember that most children take everything literally, especially younger children. So when you joke after looking at this week’s grocery bill that pretty soon you won’t be able to afford to eat, your kids may picture the whole family literally starving to death.
2. Try to limit all of the outside opinions on the crisis. While it is good to be informed as adults, kids should get their information straight from you, not the television. All of the bad news can be confusing and scary.
3. Be honest and reassuring. Kids don’t want or need every detail of your family’s financial situation, but they should know some basics of what is going on and all of the positive things you are doing as a family to get through this time. Reassure that that although you may have to cut back on certain things, such as a family vacation, they will still have a roof over their heads and enough food to eat.
4. Share your basic plan with the kids. For example, they may be worried about what happens if you lose your job. Let them know what you would do in that situation, such as how you would find another job, collect unemployment, take on a temporary part time job, etc.
5. Talk to the kids about how they can help. Having something to do that is positive can help children feel empowered and less frightened. They might be able to do more chores around the house to free up their parents for problem solving or they could be tasked with finding ways around the home to save money, such as cutting coupons or reducing the energy bills. Encourage teens to come up with ways that they can help pay for some their own expenses, such as by baby sitting or doing yard work.
6. Teens can handle a little more information and instruction than their younger peers. Older children are probably more aware of what is going on, and can learn from the current economic crisis. While every detail isn’t necessary, you can show teens your basic budget and how your monthly expenses can be compared against your income. For example, let them see how you are cutting back in one area that isn’t as important to the family in order to put that money toward another area that is.
7. Finally, let kids of all ages know that as bad as everyone is saying it is, the economy has always bounced back from economic crisis and will do so again.