How to Talk to Your Children About Financial Challenges

Budget constraints may make the holiday season seem somewhat different this year especially for parents.

The children are extremely sensitive”, says Wendell Clarke, a Atlanta-based financial behavior specialist.

If you are facing financial difficulties, you may wonder how open you should be to your children. In its practice, Clarke helps customers with financial planning, including preparation for difficult times.

Here is his advice on how much you need to explain to your children.

Three advice to talk to your children about financial difficulties.

Be Honest

Start being honest, Clark says.

If there will be obvious changes in the way you spend é, for example, less errands of food from outside, or if one of your parents has been laid off and spending more time at home explain why.

I wouldn't make it long or complicated”, he says. I would create space for them to understand or not to understand immediately and ask questions”.

Support Your Children on Their Emotional Road

Whether they start asking immediately or need time to process the situation, make sure they support their emotional reactions.

I wouldn't make it long or complicated”, he says. “ Periscope.

Support Your Children on Their Emotional Road

Whether they start asking immediately or need time to process the situation, make sure they support their emotional reactions.

Tell them things will be just “for a little bit”.

Model behavior that you want to see in you

Finally, it is important to be an example of the financial behavior you want your children to learn.

For example, if you spend a lot of money on clothing, travel, or food during times of hardship and when things are better, that is the relationship with the money you are being taught.

“Communification is both verbal and verbal,” says Clarke.

“Use daily situations to share financial strategies with children, so they can learn your message and values about money,” he adds.