Economics are a fact of family life—as much as many of us would like to pretend they aren’t, we know that the every day lives of our families (and its members) are influenced by what is going on with the economy. As more and more of us are affected by rising costs, dropping income, and the general precariousness that a recession brings, it can be tough on our children too—especially since they often do not understand why things are changing and mom and/or dad are more stressed.
It can be too much to expect young children to understand a change in the family finances—especially if it is drastic. This does not mean that we should hide things from our kids or avoid talking about money, it just means that we will need to be age appropriate and try to keep things on a level that they can understand. A young child might understand: “Groceries are costing more money right now so there is less money for movies and ice cream.” We have to watch out for saying things that could frighten a young child, however such as expressing fears of losing our job or ending up in the “poor house.” We may just be blowing off steam, but it can be scary and unsettling to a young child.
Older kids might be better equipped to understand some of what is happening although the complicated economics behind it will likely be overwhelming. They may notice that the prices on some of their favorite “treats” have gone up and if you include them in shopping and some basic family finances, they may want to know why gas prices are going up or other things. This can be a fantastic opportunity to educate them on economics and get them involved in helping you budget and prioritize.
I have found that using factual and age-appropriate language is very important. The more emotional or elusive we are the more confusing and scary it can be for our kids. They are hearing and reading about recession and economic hardship too and they deserve to have us help them understand what is going on (which means we have to try to understand it ourselves.)