Science of Parenting: Talk to Kids about Money

AMES, Iowa — Many parents think they can hide financial stress from their children, but the kids always know – and they’re worried, too. Talking together openly about family finances is a better way to lower everyone’s stress level and also teach kids about money, say the Science of Parenting bloggers from Iowa State University Extension and Outreach.

“When parents argue about the mortgage or complain about the cost of everyday expenses like food or child care, children notice," said Janet Smith, a human sciences specialist in family life. "Add a financial crisis, like unemployment or unanticipated medical expenses, and soon everyone is feeling the pressure."

“If you really want to protect your children from the effects of stressful financial situations, then talk to them honestly. How you talk about money issues will depend on their age, but being willing to answer their questions will help reduce their anxiety,” said Lori Hayungs, also a human sciences specialist in family life.

This month Smith and Hayungs will share ideas on how to teach children about money and how to keep financial situations from negatively impacting children. They’ll look at appropriate money concepts to teach at different ages and developmental stages. They’ll discuss how to involve children in family spending plans and goalsetting. They’ll also explore how to begin financial planning discussions with teenagers as they consider career and life choices.

Learn more from tips on the blog throughout the month and in a short podcast. Through the Science of Parenting, www.scienceofparenting.org, ISU Extension and Outreach specialists share and discuss research-based information and resources to help parents rear their children. Parents can join in the conversation and share thoughts and experiences, as well as how they handle parenting responsibilities.

The Science of Parenting from ISU Extension and Outreach also is available on Twitter and via text message.