Family Matters: Discussing Financial Hard-Times with Your Kids

Try as you may, but you cannot cover up your money problems. Everyone around you will be affected by your stress and other symptoms. The stress associated with financial struggles can be overwhelming to you and your children, no matter what their age. A parent’s natural instinct is to shelter children from difficult situations.  Resist the temptation and instead take this as a teaching opportunity to develop healthy money habits that can lead to a sustainable financial life. Here a few tips to keep in mind:

Know your audience

Your approach should be tailored to the age and maturity level of your children. While young children may not understand most financial matters, they will notice when their lifestyle makes a dramatic change and their parents are anxious and stressed. You can reassure young children by maintaining a stable, loving environment.  Understand that your feelings of shame and anxiety can transfer to your children—often translated into guilt. Therefore, it is a good idea to save conversations with friends about your finances for after the little ones go to bed.

Pre-teens and teens typically pay attention to the news and may have general knowledge of the current economic state.  Explain to them how the economy has affected your family.  You can also involve your pre-teens in budget planning and use this period to teach them about the importance of creating and sticking to a budget. This may help them deal with peer pressure because they will know in advance what to expect.  Allow your teenagers to help out by getting a summer job or encouraging entrepreneurial endeavors.

When you are facing money troubles having the support of your family is vital to your recovery. Filing for bankruptcy relief may be one—but not your only— option that can help you bounce back from an economic downturn. Our full service at Harold Shepley & Associates can analyze your finances and find the best route to put you back on the road to financial freedom. Consultation is free and all you have to lose is your debt.

By Harold Shepley | Published September 10, 2013 | Posted in Financial Distress | Tagged bankruptcy attorney, family matters, file for bankruptcy, talking to kids | Leave a comment