Many parents are saying 'no' to extras for their kids as they watch
their wallets. But how do you explain this lifestyle change to kids?
Ed Christophersen, PhD, a clinical psychologist with Children's Mercy
Hospitals and Clinics, says parents sometimes spend more time talking
to kids about money, or the lack of it, when they should be modeling
good money management.
“Children already know about the economic turmoil; they see it on TV
and hear it on the radio,” Dr. Christophersen says. “This is a chance
for parents to set good examples for their children on money
management.”
Dr. Christophersen recommends setting up an allowance for a child,
agreeing on how much the child will earn and what they can buy with the
money. He also suggests taking time to teach kids the power of saving
and earning interest, by paying kids once a month, and perhaps adding a
few extra bucks in interest for keeping their money in a savings
account.
Dr. Christophersen warns parents to avoid fighting over money in front
of their children. Instead, he encourages them to spend time showing
kids how to work through problems.
“What the kids need to see is not just that a job was lost, or a home
or car was repossessed, but they also need to see how mom or dad or
both work their way out of that situation,” Dr. Christophersen says.
