We felt the effects of the 2008 market crash all throughout 2009, I spent a lot of time telling my daughter no. I felt bad, she was in her first year of college and we felt the economic downturn big time. Every penny had to be watched, there was nothing for extras. 2020 is feeling the same after some many moths of dealing with this pandemic. Here are a few tips on how to talk to your kids during this unusual economic time:
Remain calm. “Staying calm is everything,” said Stervinou. “A child will innately think it’s their fault when you talk to them about money problems. Don’t put that on them.” Calmly explain the situation in a way that lets your kids know that you are in charge and you can handle it — whether you feel that way or not.
Answer in an age-appropriate way. A seven-year-old has no interest in IRAs or what the economic downturn has done to your balance. He or she wants to know why they can’t have a new pair of shoes.
Keep it simple. Say something like, “Mom and Dad are not working right now because of the virus. We’re being careful with our checking account and will not be spending as much as we normally do.”
We survived 2009, with care of spending, we can survive 2020.