Explaining Financial Troubles to the Kids

With the rising cost of groceries, exorbitant petrol prices, and
general economic uncertainty, many families are being forced to make serious changes
in their spending patterns. This can be a shock for teens and preteens who grew
up in the 90s, during affluent times in which the prevailing wisdom extolled making your kids happy. Average teenage pocket money can top $100 a month.

But last week, a survey found that US teen spending had dropped
by 27 percent. Considering that much of this spending money comes from
allowances or gifts, we can be pretty sure the kids are not being thrifty out
of choice.

As parents struggle to explain the crisis to teens freaked
out by dire newspaper headlines and cutbacks in family expenditures, parents
may see their kids as spoiled or bratty, while teens may see their parents as
unreasonable or over-anxious. One mother interviewed by the New York Times started showing her confused and upset
teenagers the monthly bills. Another father threatened to charge his kids’
friends rent for sleeping over.

Some families have found the crisis to be a good opportunity
to become close with their children in new ways. Asking your kids to brainstorm
about ways to cut back on family spending makes them feel valued and useful, and helps prepare them to find their own way in less than optimum economic times. Some parents have stopped hiring lawn cutters and housecleaners, choosing
instead to pay their kids (far less) for the same services.

Photo: New York Times