{"id":1129,"date":"2025-04-27T13:51:46","date_gmt":"2025-04-27T13:51:46","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/how-to-talk-to-your-children-about-money-in-these-uncertain-times\/"},"modified":"2025-04-27T13:51:46","modified_gmt":"2025-04-27T13:51:46","slug":"how-to-talk-to-your-children-about-money-in-these-uncertain-times","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/how-to-talk-to-your-children-about-money-in-these-uncertain-times\/","title":{"rendered":"How to Talk to Your Children About Money in These Uncertain Times"},"content":{"rendered":"\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Stock market gyrations. Inflation. Layoffs of federal workers. A possible recession.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Children may overhear their parents talking about these things and not fully understand what\u2019s going on or how it may affect their family\u2019s finances. But if the children have questions, parents should be ready to talk, experts say.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cParents are the biggest influence on kids\u2019 financial learning,\u201d said Ashley LeBaron-Black, an assistant professor of family life at Brigham Young University.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Here are some tips for having conversations about money.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-46be73d\">Children don\u2019t pay attention to the national economy, right?<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">The nation\u2019s economy seemed on solid ground at the beginning of the year, but economists expect that growth slowed in the first quarter amid uncertainty surrounding President Trump\u2019s tariffs. Inflation has steadied, but the threatened tariffs could push prices higher again. At the same time, high borrowing costs are weighing on households, particularly those with lower incomes, and more people are late in paying their credit card bills. The stock market has whipsawed as Mr. Trump has repeatedly revised his tariff plans. And consumer expectations for <a class=\"css-yywogo\" href=\"https:\/\/www.conference-board.org\/topics\/consumer-confidence\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">the economy<\/a> over the coming months have soured.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Parents shouldn\u2019t assume their children are oblivious to these issues, said Rebecca Maxcy, director and principal investigator at the University of Chicago\u2019s Financial Education Initiative.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Children may not grasp the details, but they\u2019ve overheard adults discussing prices at grocery stores and restaurants. And they\u2019re probably hearing unfamiliar terms, like tariffs, from television or online or from friends at school. This month, for example, news reports discussed the possible impact of the Trump administration\u2019s proposed tariffs on the pricing and availability of the new Nintendo Switch 2 video game console, an item of interest for many children.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt\u2019s everywhere, it\u2019s so in your face, and kids are hearing it and seeing it,\u201d Ms. Maxcy said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Children are intuitive, she said, and can pick up on concerns their parents have about the cost of living or the effect of market swings on their retirement savings or college savings.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-1330774e\">How can I talk about money without making my child anxious?<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">If a child wonders how the family may be affected by changes in the economy, talking through the concerns can help reduce fear and confusion, said Maureen Kelley, a certified financial therapist in Denver. \u201cYou want to keep it honest but age-appropriate.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Rather than saying the family may need to cut back on spending, Ms. Kelley said, you can try \u201cWe\u2019re being more careful with our money right now\u201d or \u201cWe\u2019re adjusting how we spend our money.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Parents can emphasize any steps they have taken to prepare for financial potholes \u2014 like creating a rainy-day savings fund, said Deana Healy, vice president of financial planning and advice with Ameriprise. They might say, \u201cYes, things are perhaps uncertain, but here\u2019s what we\u2019ve done.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">If your child asks what all this may mean for your family, it can be a \u201cprime moment\u201d to have a conversation because that will make any potential belt-tightening more understandable, Ms. Maxcy said. \u201cYou can say, \u2018We\u2019re making some changes,\u2019 instead of all of a sudden saying \u2018No\u2019 all the time,\u201d she said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Avoid having money talks with children when you\u2019re stressed, Ms. Maxcy said. If you\u2019re busy and not ready to talk, say you\u2019ll find time to chat when things are quieter. \u201cMaybe don\u2019t have the conversation if you just opened your 401(k) statement,\u201d she quipped.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Robin Gurwitch, a psychologist and professor at Duke University Medical Center, recommends broaching the subject with children even if they don\u2019t ask, because they have probably heard about economic concerns, especially if they\u2019re on social media.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cYou can say: \u2018There\u2019s a lot of talk about our economy and tariffs. I\u2019m wondering what you\u2019ve heard about that.\u2019\u201d Once parents understand what the child knows, they can address any concerns or correct misperceptions.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Because some teenagers may brush off inquiries from parents, Dr. Gurwitch said, it can help to address their concerns indirectly. Perhaps you can ask, \u201cWhat do your friends think about this?\u201d If your teenager says her friends are worried they may not be able to buy a dress for prom, she\u2019s probably concerned as well. Then, Dr. Gurwitch said, you can reassure her that the family can afford a new prom dress, if that\u2019s the case or, if money is tight, discuss a budget.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The overall message to children, she said, should be, \u201cWe are here to support you even if things are uncertain or scary.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">John Lanza, who has written books about allowances and family finances, said including children in budgeting could help give them some sense of control.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cKids want to be a part of the solution,\u201d Mr. Lanza said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If, for instance, a household goal is to eat at home most nights instead of dining out, make it a game by having children suggest meals and help cook them. And if you can swing it, offer to give your children some of the savings as pocket money.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-71e28511\">What if I\u2019m not confident in talking about money?<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">Parents may feel that they need to have all the answers, but \u201cit\u2019s fine to admit you\u2019re not an expert,\u201d said Scott Rick, an associate professor of marketing at the University of Michigan\u2019s business school who has studied financial decision making.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If your children ask about <a class=\"css-yywogo\" href=\"https:\/\/www.edweek.org\/teaching-learning\/how-to-teach-tariffs-8-resources-and-lessons\/2025\/04\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">tariffs<\/a>, for instance, and you don\u2019t have enough knowledge on the topic, you can encourage their curiosity, and show that it\u2019s all right to ask about money, by offering to research the subject with them.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cYou might say: \u2018I\u2019d like to get a better handle on that myself. Can we look into it together?\u2019\u201d Dr. Rick said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Some parents may avoid talking about money with their children because they feel guilt or shame about past financial mistakes, said Yanely Espinal, a financial educator and an author. But it\u2019s smart to talk about money at home \u201cearly and often,\u201d she said. Research suggests that education from parents during childhood is linked to healthy financial behaviors in young adults, she said, particularly responsible credit card use.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-4043028d\">How can I start conversations with my children about money?<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">You probably already have some resources handy. Simply sharing a receipt after going to the store, for instance, can lead to talks about how much things cost, said Cynthia Fitzthum, a financial education expert at St. Cloud State University in Minnesota.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Dr. LeBaron-Black\u2019s parents once gathered her and her siblings around a stack of Monopoly money and counted out how much income they made each month, she said. \u201cI thought, \u2018That looks like a lot,\u2019\u201d she recalled. Then her parents started subtracting: the amount they spent for the mortgage, heat, electricity and food. By the end, there was still a little left. But the point was made. The family\u2019s needs were covered, but they had to spend wisely.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Reading and discussing books, including those not explicitly about money, can start conversations about why characters make the choices they do and how money may have played a role, Ms. Maxcy said. For young children, she suggested \u201cA Bike Like Sergio\u2019s,\u201d about a boy who desperately wants a cool bicycle.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Dr. Fitzthum suggests a book for third to fifth graders, \u201cBeatrice\u2019s Goat,\u201d about a young girl in Uganda who receives a goat and the impact it has on her family. Without using wonky terms, it introduces concepts like income, savings and even opportunity costs \u2014 the economic principle that making one choice can mean you miss out on the benefit of making a different one.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Kelly Li said she had decided to write the \u201cLittle Economists\u201d series of books for children ages 3 to 8 after becoming a mother and learning that many Americans lacked savings. (Ms. Li, who previously worked in finance, wrote the books \u2014 with titles like \u201cWhat Is Money?\u201d and \u201cWhat Is Inflation?\u201d \u2014 under the surname Lee.)<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Council for Economic Education, which focuses on economic and financial instruction in kindergarten through high school, offers a free Financial Fun Pack on its website with exercises families can <a class=\"css-yywogo\" href=\"https:\/\/econedlink.org\/family-at-home-financial-fun-pack\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">use at home<\/a>.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stock market gyrations. Inflation. Layoffs of federal workers. A possible recession. Children may overhear their parents talking about these things and not fully understand what\u2019s going on or how it may affect their family\u2019s finances. But if the children have questions, parents should be ready to talk, experts say. \u201cParents are the biggest influence on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[890,293,889,820,819],"class_list":["post-1129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-children","tag-money","tag-talk","tag-times","tag-uncertain"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=1129"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/1130"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=1129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=1129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=1129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}