Talking to Your Child about the Economy

As a parent, I am regularly faced with the predicament of having to explain to my children things like why I can't always buy them whatever they want, why I complain when they leave the front door open to "air condition the entire world," and why I often work into the night (and sometimes even on weekends). I don't want them to grow up worrying about money (that's my job), but I do want them to be aware of the fact that we must work for the things we have, and that we must be conscious of a budget. The economy is a tough subject to explain to children, but it is also necessary to arm them with the knowledge and tools they will need in order to be fiscally responsible adults. So, where do you begin? Here are my suggestions for talking to your child about the economy.

Encourage open communication. If you have school age children, then there is no question that at some point they will hear about the "economic crisis" (like the Greece crisis) and they will wonder what it is about. Initiate conversations about the economy by asking questions like, "Do you talk about the economy - or things like money and jobs - in your class? What do you think?" Once you understand how much your children actually know about the economy, you have a good starting point for discussion. Plus, encouraging them to open up about what they think and feel about it is the best way for you to gauge exactly what should be addressed and how.

Teach good habits. To teach the concepts of how the economic system works, use an allowance chart. You don't even have to use money; rather, any system of tangible reward and consequence will instil in children the value of hard work and saving. Also, let your children help you clip coupons and hunt for the best deals when you go shopping together.

Provide assurance. At some point, your children may feel the stress of these hard economic times. They may even see the effects in your household. Make it a point to reassure them that everything will be fine, no matter how tough a time the economy is having, and no matter what kind of changes you may go through. Also, remind your children that you are the adult, and that it is your responsibility to worry about the economy and not theirs.

The economy may be a complex subject, but you don't have to be an economics whiz to be able to teach your children about it. Approach the subject with love, an open mind, and assurance, and you will be giving your children a gift that will last a lifetime.

Blair Shinsel knows that even in a bad economy there are plenty of ways to entertain the family. Blair enjoys searching for the best deals for entertainment and events online. Even though he can't go out as much as he used to, the family can still spend time out of the house from time to time!

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