The pressures on children have never been higher than they are nowadays; so many “must haves” so that they can conform with their peer group – clothes, phone, games, shoes – the list goes on. But the pressures on parents and caregivers are high too – food, power and petrol costs, not to mention skyrocketing housing costs. Talking to your child about money will probably feel uncomfortable, but honest, calm conversations are necessary to teach them valuable life skills, not the least being an understanding that at times we can’t have everything we want right now.
So, your child may be asking for money you can’t afford to give them. Or you may be facing issues that mean that cutbacks must be made in the household’s expenses.
In either scenario, below are some tips to help you and hence your child:
Think about what you want to say before you start talking to them. Get the facts clear in your mind – and promise yourself you will give them facts and not get carried away with emotions.
Choose the right time to talk. Make sure you allow enough time for a meaningful talk i.e. don’t rush it. Avoid starting the conversation during an argument, when one of you is upset, or having a stressful time.
Be honest but keep it simple. You don’t need to share every detail, just explain the situation clearly, saying that money needs to be managed carefully right now. They don’t need to be dragged in to your adult worries.
Explain the “why”. If things are changing — fewer takeaways, no big purchases, or saying no to extras — explain why. Children are more likely to understand and cooperate when they know the reason rather than just being fobbed off with a “no.”
Involve them going forward. You can ask for their ideas on how to save money or cut costs. Ask them what they would do in your shoes. This makes them feel included and valued, as well as teaching responsibility without putting pressure on them.
Listen to their feelings. Your child may feel disappointed, embarrassed, or worried. Let them talk and acknowledge how they feel, even if you can’t change the situation right away. Children can worry more than they show, so let them know they are loved, safe and supported, even if finances are challenging.
And finally, money talks shouldn’t be a one-off when a crisis hits. Short, regular check-ins help build trust and make future conversations easier. Having these discussions isn’t about scaring your child — it’s about preparing them. Open, honest conversations about money can strengthen your relationship and help your child grow into a confident, financially aware adult.
And remember – we are here to help.
