Helping Kids Deal with a Financial Crisis

Even though many people go through it, it’s still shocking when your family faces a financial setback. Most of us experience the emotional impact of money problems at some point in our lives. You are not alone. What we don’t often realize is how our children are impacted. Kids are very alert. If you are upset, they usually can tell.  Helping kids deal with a financial crisis is important.

It can be difficult to decide what to tell your children about the household financial status. Open communication is the key in helping your children cope and feel secure during hard times. By relieving stress in a positive way and keeping the whole family involved, financial issues can bring a family closer together.

Hard times open a window to educate your children about money. Here are some ideas:

• Explain the situation in a simple way.
• Keep conversations positive. Everyone will be nervous about the unknown. Keeping a positive mindset will help them avoid stress.
• Construct a scaled-back budget. Walk your family through it so each person is on the same page. Keeping the whole family involved will promote a sense of unity. Maybe even post the budget on the refrigerator and update it daily.
• Give children power in the budget. Give them choices about which activities are important to them. This makes them feel they are contributing.
• Try to keep day-to-day the same. You can still have Family Fun Night. It may just be a home cooked dinner and game night, instead of a restaurant and a movie at the theater. Brainstorm some free activities to do together.
• Consider allowing an older child to watch as you pay the bills so they can learn first hand.
• Make savings a game. Have weekly competitions to see who can find the best price on groceries or movie tickets.

Financial struggles are difficult on families. Try not to make this the cause of arguments. Instead make it a time to bring the family closer by working together.

It Starts with a Conversation

It may be helpful to talk to a financial counselor about your options. Your call will be answered by a caring, compassionate expert who understands that financial hardships happen to good people. We will treat you with care and respect. We’re committed to your success in becoming debt-free.