November 2025

Talking to Kids About Financial Stress and Money Worries

Dr. Whitney Raglin Bignall
Whitney Raglin Bignall, PhD

Article Summary

 
  • Children often feel the impact of financial challenges, even if they don’t understand it. Learn how to talk about money worries that supports kids’ emotional well-being and mental health.
  • Learn how to choose language, answer questions openly and reassure children that they are safe and not responsible for the situation.
  • Ongoing conversations can help kids feel safe and secure during these uncertain times.

When there’s a job loss, unexpected expenses or other change in circumstances, it can be stressful for parents and caregivers. Children and their mental health are also affected, especially when they sense stress at home. How can you talk with kids about it in a way that’s helpful and doesn’t cause additional stress or worry?

When is the right time to talk to kids about financial stress and money?

Before starting the conversation:

  • Check in with yourself and your emotions. Make sure you feel prepared. Take time for self-care before you begin.
  • Pick the right moment. Avoid times when you are rushed, distracted or only have a few minutes.

How do I start a conversation about money with my child?

  • Think about your child’s concerns. Will they need to give up a sport, lessons or a camp they’re looking forward to? Will you need to move? Will there be enough food to eat?
  • Be open and honest without giving too many details. Use simple words and let them know how you think it will impact them. Consider their age and understanding when sharing information.
  • Reassure Let them know they are safe and cared for. Tell them you are working on the problem.
  • Ask how they’re feeling. If they aren’t sure, you might want to help them identify their emotions.
  • Validate their feelings, even if it’s hard for you to understand. For example, they might say they are sad they won’t get to watch their favorite shows. You could reply something like, “It sounds like you’re sad and maybe frustrated about giving up our streaming service. I know it’s hard to give up things we really like to do.”
  • Emphasize it’s not their fault. Make it clear this is an adult issue and not theirs to solve.
  • Keep checking in and continue the conversation. Let them know that things will likely change. Tell them you’ll continue to have conversations and will let them know when you have more information.

How much detail should I share about financial struggles?

  • With young children (under 5) you can acknowledge that there’s a concern and you’re working on the problem. Older children can understand more of the reason (job changes, loss of assistance) and what you’re doing to solve the problem.
  • If something they were excited about is not going to happen because of new financial concerns, let them know that.
  • Explain needs versus wants. Explain the difference between needs (food, shelter) and wants (vacations, sports equipment, etc.). Let kids know that right now, you’ll focus on needs. Tell them that may mean that some, or all, of the wants won’t happen.
  • If you’re unable to meet needs (food, shelter, transportation), let them know that you’re working on finding help.

What do I say when kids compare our family to others?

Kids often compare themselves to others. And it may be true that their friends, right now, aren’t having the same money problems that your family is.

You might say something like, “It’s normal to compare yourselves to others. I do that too sometimes. But we don’t know all the details of anyone else’s life or situation. Let’s focus on what we do have, which is each other, and try not to focus on what other people have.”

How often should I talk to my kids about financial stress?

  • Check in regularly, especially when things change.
  • Listen for their questions or behavior changes. Those let you know it’s on their mind.
  • Welcome their questions. Answer questions honestly, based on their age and understanding. If they’re asking, it’s because they’re thinking about it.
  • It’s OK to answer, “I’m not sure.”

Money struggles are hard - not just for parents, but for kids too. But with honest and open conversations and ongoing check-ins, you can help children feel safe and understood. These moments build trust and can strengthen your connection – even during these difficult times. Remember, that during these difficult times, your positive relationship with your child is a protective factor to their mental health.