How Do You Talk to Your Kids About the Economy?

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November 20, 2008

What's the best way to discuss the current economy with kids? Today on Momversation, Nataly Kogan of Work It, Mom! wants to know if you've talked to your children about money and the economic crisis. How do explain family "budget cuts" to your little ones? What are your tips for other families? Join the conversation by leaving a comment below or participating in our related forums:

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Panelists

Asha Dornfest - Parent Hacks Heather Armstrong - Dooce Mindy Roberts - The Mommy Blog Nataly Kogan - Work It, Mom!

Keywords

News and Politics Parenting Shopping Work and Money

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11 Comments

khrmail

Am I the only one who found that video really annoying? This is the first "momversation" I've watched, and it doesn't make me want to watch any others! Your child looks at you in confusion when you suggest the library instead of the bookstore? You can't have a party for your child because then you'd have to get one of those inflatable bouncers or something similarly expensive? Cry me a river.

I'm not saying every child needs a "friend" birthday party every year or anything, but I fail to see the big sacrifice in celebrating at a restaurant with your family and then not having some big expensive party with the child's friends. If she's missing celebrating with her friends, have them over and play some games! It doesn't need to be expensive. SHEESH.

I love Dooce, and she can see the humor in things. One or two of the other moms had some insightful comments as well, but the overall tone of this was nauseating and makes me embarrassed to think of myself in the same demographic.

Fri, 2008-11-21 16:16

Mindy

khrmail,

I was exaggerating for humorous effect. Notice I also mentioned dancing girls!

The kids had a choice, actually: have the sort of playdate option you mentioned, or completely forgo the more organized party. For instance, I said they were dreaming if they thought we could go to Great America because that was just insane (I've never even taken them there), but that this was not a year to even get a table at the park and decorate and bring food for ten kids. I think it was more the thought that we were that poor that bummed them out, and they felt ashamed for asking for anything at all.

They are just kids, and they see the world differently than we do. They don't see it as merely choosing another, wiser option, they see it as a major impact on what they consider to be the most exciting day of the year, one they wait for all year long.

Sat, 2008-11-22 09:09

MsBwell

I didn’t find this video annoying, maybe it’s due to the fact I have some friends who are finding themselves in a rough spot.

Prior to all the economical issues we have taught our girls about “wants” and “needs”. Saving money, using cash not credit and the value of a dollar. We don’t go out and buy them “want” items, they have chores they do for an allowance half of the allowance is put into their savings. They know that we have our checking account, a main savings account, a Christmas account and a vacation account. They see that we have no credit card debt. I didn’t want them to learn it the hard way, like I did. I think they understand that charging and living above your means will eventually come to bite you in the butt. One day that bill is due and you are expected to pay it.

Now we have made some changes in our household to make up for spending more at the gas pump, on groceries ect. Instead of eating/ordering out once a week we now make homemade pizza and have family game night. Ended up being a win instead of a loss.

Fri, 2008-11-21 17:36

faydean

I'm not sure exactly how the economy is effecting so many people as we hear on television. I know it is, but it really doesn't seem as bad as you would think. Personally, we haven't felt it besides our 401K, but considering that we are in our mid 30s we're not concerned about that.

I haven't really seen it impacting people in general to be honest. We took a vacation to the mountains and the local resort was absolutely packed with people shopping and eating out. We drove to the beach this summer and had a hard time finding a house to rent...they were all booked, and that's when gas was really high. I just went Christmas shopping today and for midday on Friday, there were TONS of people, all of them with carts full at Toys R Us. etc. I asked a couple of store clerks of business was bad and they said NO, not at all.

I guess it depends on where you live and what you do for a living perhaps. I don't know. We cut back this year on Christmas mostly because our kids don't play with half of what they get. But in terms of how much we spent, it was about the same.

Fri, 2008-11-21 18:12

Mindy

Faydean,

I am so glad you pointed this out, because this is the great paradox of downturns: those who are well off don't feel the day-to-day effect. They see it in their 401ks but they don't have to make different choices when it comes to eating out, buying groceries, or even buying regular instead of premium gas, because their margins are more forgiving. People will always be taking vacations—just not the ones for whom it was a stretch, those who have thin margins.

You will find people spending right now no matter how tight things are, perhaps because they don't feel the kids should miss out on Christmas and are using credit to cover expenses. This year, no one in my extended family over fifteen will be exchanging gifts. That way, those who are too young to understand aren't impacted, and those who are old enough to understand are empowered to support the collective money-saving effort.

Sat, 2008-11-22 09:25

LilEmpressMommy

If you're one of those folks that can afford to take a vacation to the mountains, you're probably not feeling the effects of the economy. But that doesn't mean the economy doesn't suck just because you don't feel it. Consider yourself lucky, damned lucky, that you're not feeling the day to day effects. Trust me when I say that there are PLENTY of us out there that weren't with you and the families that you saw relaxing and eating out on your vacation.

Tue, 2008-11-25 20:13

Giyen

I have a very practical approach to explaining the economy with my daughter. Instead of saying, "yes" to buying things, I now say, "If you want to do/get that, you should think about getting a job."

Actually, I talk to my daughter about tightening up the purse strings and get her involved with making decisions about discretionary income. Together we have made the decision to cut out cable (which I am so happy about) and we have stopped buying books for now and are checking out books from the library. This has saved about $150 a month and we are spending that money doing things like going to the movies or buying clothing or other frivolous stuff. We haven't missed cable a bit ... after all, there is Hulu.com.

I think at that age it's good for them to know what the reality is and hopefully it will translate into making good decisions as an adult.

Sun, 2008-11-23 16:42

wendysurf

We never could afford to keep up with our oldest son's, 7, reading habit. We go to the library weekly. He's on his fourth Harry Potter book in less than three weeks.
http://www.areyoubreathing.com/

Sun, 2008-11-23 20:37

LilEmpressMommy

For those of us who couldn't afford things like vacations to begin with, we are DEFINITELY feeling the effects of the economy and not just in our 401k. My family is blessed in that we've always had Enough and have been able to make ends meet but affluent we are not. In this down economy, while some people have the luxury of cutting back their "frivolous" items, such as trips to the book store, cable, etc. those of us for whom frugality was a necessary of our lifestyle are having to look even harder at what we can cut back on or do without. And that's damned hard. Because for some folks, it's not "Let's go to the library instead of the bookstore" it's "Do we really need to burn the gas to get to the library this week?" Think about that.

Tue, 2008-11-25 20:12

mamas got moxie

my son is 3 so we don't have very many discussions about the economy. in fact, he thinks three pennies equals five dollars and that he can buy every toy at the store with them. i haven't told him the bad news yet.

Tue, 2008-12-02 11:47