Talk to your children about debt without worrying them

When you have debts, you avoid telling your children in order to protect them and prevent them from worrying. However, if you lie to them or hide information, they always realize something’s wrong in the end. Therefore, it’s best to tell them the truth. How you broach the subject is important.

1. Choose the right words

First of all, keep it simple and don’t go into too much detail. The message that you want to share is that you need to pay more attention to your spending now, but the situation is temporary.

You should avoid dramatizing the situation, telling them that you’re crippled with debts or that you can’t get out of debt.

Depending on their age, you could take a calm and reassuring approach and say:

• “We’re paying more attention to what we buy at the moment” (for children under the age of 10);
• “I have a few unpaid bills and I owe people money so I’m making a budget to repay everything as soon as possible” (for teenagers).

2. Reassure them since worrying isn’t their responsibility

Starting out by reassuring them is essential. Clearly tell them, “It’s not your fault. I have a plan to fix the situation.” Emphasize that their basic needs will be met (accommodation, food, school) and this is only a temporary adjustment to get back on track.

3. Use simple terms and an optimistic tone

Instead of using words like “debts” or “crisis” that could worry them, use terms that focus on control and a solution such as

• “We’re prioritizing the important things.”
• “We’ll watch what we spend for a while so we can enjoy ourselves later.”

A calm and positive tone will help them see that everything is under control and you’re making wise choices to deal with the situation.

4. Turn the conversation into a learning opportunity

You can also involve your children in small day-to-day decisions. This will show them how you can spend wisely without depriving yourself, which instills good spending habits for the future.

For example:

• Cook meals at home rather than ordering take-out;
• Take advantage of free family activities;
• Compare prices at the supermarket.

5. Lead by example

We all know that children learn from our actions. If they see you making a budget, avoiding impulse purchases and seeking solutions rather than panicking, they’ll learn to adopt this approach for managing challenging times.

In a nutshell, you can talk to your children about your debts if you use the right words. What’s essential is using simple language and not passing your stress on to them. You could even leverage this challenging situation to show them that financial difficulties can be resolved if you adopt sound financial habits like making a budget.

Contact our team of experts if you need help finding solutions to free yourself from debt! We can help you regain your peace of mind.