Stacy DeBroff, the founder and CEO of MomCentral.com, a company devoted to providing advice to simplify and enrich the lives of busy Moms, offered strategies for talking to young children about the recession. DeBroff, nationally acclaimed parenting expert and bestselling author of The Mom Book [Free Press, 2002],The Mom Book Goes to School [Free Press, 2005], SIGN ME UP! [Free Press, 2003] and Mom Central: The Ultimate Family Organizer [Kodansha America,1998] was interviewed by telephone on March 19, 2009.
Talk about the Family Budget
Keep talk of financial issues out in the open, but don’t make it anxiety driven, counseled DeBroff. Offer reassurance, such as ,”This is how it is now, but we expect it to get better. We are a family and will be fine, but we all need to work on this together.”
Frank discussions of money can begin with children as young as preschoolers with an explanation of why they cannot have certain things, DeBroff said. Point out the savings efforts you too, are making, perhaps with a brown bad lunch instead of take out, or cutting coupons, or skipping the coffee shop and making your own. Let children know that while a big vacation may not be in the offing this summer, your family will still enjoy trips to the beach or local parks or time spent with grandparents and friends.
If your family tradition has been to go overboard on birthday gifts, this might be the year to make a change, suggested DeBroff. "Let your kids know that this year you'll surprise them with a smaller gift, and they'll be able to plan a special day with the entire family. Whether it's a picnic at the zoo, a hot chocolate and sledding fest, or a family feast with their favorite foods, it can be the start of a shift in family priorities."
Keep Budget Information Age Appropriate
Give kids info they can handle. “If the kids hear you open a bank statement and groan, they may think you have no money," DeBroff said. So talk to them about how the economy is affecting everyone's savings and about how budgeting can help. Explain that your family too, needs to watch what they spend. You might say "I know how sad you are that we can’t go out for ice cream. But how about we buy the makings for sundaes at home?" suggested DeBroff. "Without these conversations kids stay naive. And with them, they develop a sense of the value of money,” she added.
Give Kids an Allowance
An allowance teaches kids how to use money, as well as how to be part of the family. And Kindergarten age is not too soon to start, said DeBroff. "Chores and an allowance are all part of being a responsible family member. It’s okay to say that too, as well as to point out the age-appropriate activities your child can do to participate in the family, like putting napkins at the table, taking dishes to the the sink, and cleaning up toys and dirty laundry," she added.
Next, teach your kids some strategy for using the allowance. "For example, you could start with a three dollar allowance with one dollar marked to spend, one to save and the third set aside to help others" she said. You’re setting limits and teaching them how to budget and what charity is as well.
Discuss money, the economy and budget issues openly and in age-appropriate terms with your children. Focus on the positive measures you and your family are taking and provide fun, alternative activities that fit your family's economic reality. Give kids an allowance and let them use it. Follow these guidelines and you'll be on your way to raising fiscally responsible children.
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