2020 is a rough year when the COVID-19 pandemic spread worldwide. Many people have lost their jobs and suffering from financial stress. People may think financial stress only applies to adults. However, kids sometime can tell whether their parents are feeling upset or stressed. Therefore, it is the time for parents to explain their situations and help their children understand more about money. Starting such conversation is not easy and there are several things parents should be aware of before talking financial situation to their children.
First of all, try to have the conversation in a right place at a right time. You may not want to discuss financial situation early in the morning before your children going to school. Choose a time when all families members have enough time to sit down for such conversation. For example, weekend after dinner can be a good time to hold a family meeting.
Secondly, always keep in mind that the goal of the conversation is not to let your children to feel as stressful as you. As a result, make sure to deliver your information to your kids using the right word in a right tone. Try to explain your situation in clear and simple words to your kids for them to better understand. Do not use a serious tone as you may scare them. Also, let them understand that none of what happening is their fault.
Lastly, explain differently based on the age of your kid. For children under 12, you may want to explain the simple facts which caused by financial stress. Such as there might not be enough money to buy toys or go on a vacation and life will back to normal someday. For children above 12, you may want to explain the situation to them and set a savings goal together.