Talking To Your Children About Tough Economic Times

By Catholic Charities Staff

Even if the current economic crisis is not affecting your family directly, it is probably affecting the lives of people that you know. Your children may be hearing about it from friends at school, or from television. If you yourself are worrying, your children may sense your unease. In either case, it is important to address their concerns. Here are a few ideas.

The first question that children usually have is how this is going to affect them. Let your children know that they are loved and safe, and that you will always take care of them. Make sure that the explanation that you give is appropriate to their ages, and do not overload them with unnecessary detail. This is the perfect time to explain to your children the difference between needs and wants. Let them know that their needs will be met, but that the things that they want may not be provided immediately. Many parents love to shower their children with possessions, but the current situation is a wonderful opportunity to teach children the vital life skill of being able to delay gratification.

Parents sometimes feel guilty telling their children that they cannot have what they want. Instead, let them know that you understand how they feel, that you know that they are disappointed. Your empathy goes a long way toward taking the sting out of the disappointment. If you are cutting back, you may want to stop giving children money that they have not earned, and instead allow them to earn money by doing chores. Whether you choose to have your children earn money or not, you can still teach them about budgeting, about saving in order to buy something in the future, and saving for a rainy day.

Children can feel empowered when they are allowed to earn money. They can also feel empowered by learning to reduce consumption, for instance turning off lights when they are not needed or turning off the faucet when they are brushing their teeth. Children can also help to brainstorm a list of low-cost or free ways for the family to have fun – for instance using the library rather than downloading a movie. Teaching children financial responsibility is an important task for parents. Balancing wants and needs, delaying gratification and knowing how to manage money, are skills that children will need all through life.