How to talk to your kids about money when times are tough
April 13, 2023
The rising cost of living is affecting us all and many families are tightening the purse strings.
Reducing spending can be hard on children who don’t understand why their parents might suddenly stop buying the things they love.
Without a good grasp of the concept of money, children might find the adjustment to a more frugal life confusing. So, how do we talk to our kids about money when times are tough?
As with most things, honesty is the best policy. Telling your kids upfront that you are having to reduce your spending because of rising costs or loss of income will give them an important insight into how financial situations can change.
One of the best ways to help your kids build an understanding of the value of money is by paying them for small jobs around the house that they wouldn’t normally do. Raking leaves, washing the car or the dog will expose them to the concept of earning money.
If your child is creative or a keen entrepreneur, they might like to set up a stall in front of your house – they could sell homemade lemonade, or if they’re crafty, jewellery, badges, or anything else they enjoy making.
There are also many ways to build money awareness into everyday life. At the supermarket you can talk about comparing prices of similar products and looking out for specials. You can talk about how their favourite fruits and vegetables are expensive when not in season and why it’s better to buy produce that’s in season and locally grown.
Having honest conversations with your kids about money early in life will set them up for a healthy attitude to money. Encouraging kids to be adaptable and creative in their approach to finance will help them rise to the challenge when times are tough.
Need help with your finances?
Navigating the world of finance can be overwhelming even for an adult. With some smart planning and a good strategy, you can get your finances under control. If you’d like some help, TelstraSuper Financial Planning can provide advice covering a range of topics. You can get tailored financial advice from TelstraSuper Financial Planning via phone or video conference without compromising on service. Call us on 1300 033 166.