Be honest, but protect them
Financial stressors can weigh on your mind. But there’s a delicate balance between honesty and oversharing that parents must strike with their children. It’s important — and healthy — to discuss the concept of wants versus needs, how to create a budget and set savings goals.
For instance, be upfront about the reality that you can’t afford everything you want in the moment. Discuss the importance of working to save toward a goal. However, frame finances in the sense of having enough to cover your basic expenses so there’s no stress or panic for the child.
Job loss, stock market volatility or an unexpected medical cost can impact finances and stress-levels, but share only the information that your children need to be aware of. There are ways to express the reality of a situation in straightforward terms that kids can understand.
Unexpected costs occur, but it’s how you communicate the realities that matters. For example: “Remember when Dad broke his arm and had to go to the hospital? We’re so glad he’s better, but it was unexpected and expensive. We are okay, but we need to pay the doctors for all their hard work. So we’re going to wait on getting that new video game system, but we’ll have board game and movie nights that will still be lots of fun.”
This approach addresses the expense, the reason for it (Dad’s health and helpful doctors) and manages expectations about how this will shift priorities (paying bills over buying a game system).