Not all families are equally well-off. Some can afford expensive things and trips to the ocean every few months. Others buy clothes in thrift stores and spend weekends at the summer house.
But how do you explain to children why such differences exist? Kids often feel insecure about financial gaps between peers. And almost every child dreams of a new smartphone or pricey toys.
How to Start Talking About Finances
First, every conversation with children should be honest. Even young kids don’t need to be shielded from the truth. But financial topics should be explained gradually.
Children should understand where money in the family comes from, how hard parents work to earn it, and what exactly they do to provide food, clothes, and toys.
This makes it easier for kids to see why some earn more and others less. Knowing this, a child is less likely to keep asking why their friend has an expensive gadget while they don’t. And if they do, it will be easier to talk about it.
At the same time, parents should avoid overloading children with adult struggles. Complaining too much about financial hardships might make kids see adult life as nothing but suffering.
But don’t keep conversations too shallow either. Otherwise, a child may think you simply don’t want to buy them something. Striking a balance is key.
Parents should also teach children to manage their own money wisely.
Financial literacy is crucial for kids — it helps them better understand differences in wealth.
Managing Children’s Emotions
Even the most reasonable children can’t control their emotions. They may understand perfectly well that the family can’t afford a vacation this year. But logic rarely beats emotional desire. And if adults struggle with this, it’s even harder for kids.
That’s why it’s important to guide children toward true values. They should understand that the most important thing in life is family and loved ones — that’s our greatest wealth.
If a child really wants something expensive, you can hold a family council. Together, discuss possible ways to get it.
Let the child suggest solutions too. Maybe the item could replace a future holiday gift. Or perhaps you can offer a more affordable alternative. This way, their critical thinking develops, and over time they’ll learn to decide what’s worth spending on and what’s not.
It’s an essential skill for adulthood — yet not everyone has it. Don’t be afraid to involve your child in financial discussions. This way, they’ll understand the family’s situation and feel valued.
Most importantly, children must know that the lack of certain opportunities is not their fault. You’re not punishing them — you’d love to give them everything they want. It’s just not possible right now.
