Lite 98, Parent Talk
Kids are very impressionable and well aware of what is going on around them. It may be awkward, but it is best to speak as a family about money, whether speaking of concerns or benefits. You’ll be relieved of the burden by teaching good saving and spending habits when they are young.
Based on the age of your child, you will present the information differently.
· Children under 5 are most concerned with their own little world and need assurance in simple and concrete terms that they will be cared for. They can be content with short term rewards and gifts such as stickers, and may contribute by helping around the house.
· Children aged 6-9 can understand the concept of waiting or saving to buy more expensive things at a later time. On shopping trips they can learn to read labels critically and to comparison shop.
· Children aged 10-12 - can put facts together in more complicated ways and understand that sometimes the family has to cut back. They can understand everyday effects of having to economize and can contribute ideas to budget planning.
· Teenagers may feel pressured to keep up with the latest fashion or what their friends have, but can understand the need to prioritize when there’s a limited amount of money. Teenagers are capable of understanding the ramifications of the economic crisis and can discuss issues in more detail, understand more subtle effects of having less money, and be active in problem solving.
Benefits of tighter financial times:
Children naturally want to help. Here are some ways to encourage children to help:
REMEMBER: When everyone has a stake in the success of the family during tough times, then everyone can share in the success of the family in good times
Compiled with information from Nextwave Finance, Melissa Schoor, Elizabeth Tracy and Anita Gurian