Have you ever wondered how to talk to your children about the gloomy financial news that bombards them through the media? Children may worry, but not always express their concerns. Instead, anxiety may show itself as changes in sleep or appetite, nightmares, avoidance of people or situations, or even difficulty getting along with others. Experts suggest several things you can do to help alleviate a child’s anxiety.

The American Academy of Pediatrics says, first take care of yourself. Remember that children depend on you for their sense of security. If you are worried or upset, your children will likely reflect that.

The AAP also suggests that you:

• Limit TV and other media time. Watching the news may worry children.
• Choose your words carefully. Don’t say things such as, “We just lost your college savings!” or “We can’t afford that!” Instead, focus on what you know and offer reassuring words such as, “We have enough money to pay for food and our house, but we may need to spend less on eating out.”
• Be sensitive to each child’s needs and talk at each child’s level. The information you share depends on the age and developmental level of your child.
• Ask your children what they already heard and offer a simple explanation at first. Then follow up to see if they have other questions.

Turn a Negative into a Positive
Here are some additional suggestions from the American Psychological Association that will help your children develop useful life skills:

• Use your financial situation as an opportunity to manage your children’s expectations for material goods.
• Teach your children about budgeting. Set up a “savings account” for their pocket money.
• Ask your children to help you develop a family budget. This will help them feel valued.
• Teach kids about the importance of saving. Open a bank account for your child. Show them how they can accumulate interest and how their money grows over time if they keep saving.
• Involve your children and ask them to help you prioritize what is important: home, food, relationships with loved ones and friends, etc.
• Spend time together and do things that are free - play board games, take walks, talk, go to the library or the park.