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How to talk to your child about debt?

An apartment loan, a car loan, a debit on a bank account and a momentary for your current needs. More and more of us are getting into debt in several places at the same time, which translates into a difficult financial situation and the need to tighten the belt.
 

How to explain to the child that we have debts and encourage them to save together?

Don't hide from your child that you have debts
 

Temporary problems with the repayment of financial liabilities is a situation that can happen to any of us. It is enough that we go on longer sick leave, have an accident or lose our job, and our income will decrease practically from day to day. In order to cope with the payment of all dues, we have to significantly reduce expenses and give up many things, including those that we have been buying for the child. Debtors are often sad, apathetic, nervous and thoughtful.
 

This will not escape the attention of our little one. For this reason, we should not hide from the child that we are in trouble. Lack of explanation may cause the toddler to lose his or her sense of security, and in the worst case, he or she will start blaming the parents for the bad mood. That is why it is so important to talk openly with your child about our debts.

Match the conversation with your child's age
 

Otherwise, we will be talking about our financial situation with a grieving preschooler who saw a toy in a hypermarket, and Otherwise with a teenager who needs extra money for the concert of the band of his dreams. In the case of small children we should use specifics, because for a few-year-old scoundrels the terms "debt", "money" and "credit" are simply too abstract. Let's explain to the toddler that he will get a expensive toy for birthday or Christmas and has to wait for it.
 

In return, let's try to show the child how to spend an attractive time without new objects. Playing football, cycling or flying a kite are just some ideas for having fun together. When talking to an older child, we need to be honest and, above all, openly explain why we have debts. If we pay off a loan for an apartment or a car, our child should know about it. It will be easier for her to understand that although you can't afford everything, you live in a nice house and drive a new car.

 

Set an example to your child
 

Even the longest conversations and the best translations will not work if we do not follow the rules that we pass on to our child. A toddler who sees that we refuse to buy a new toy and try on shoes and clothes, will quickly lose confidence in us. Children, even the youngest ones, understand much more than we think. On the one hand, we should show the child that it is not the only one who has to give up some things, on the other hand, it is worth assuring the child that regular savings will bring the intended results and you will be able to pay off all debts.

Match the conversation with your child's age
 

Otherwise, we will be talking about our financial situation with a grieving preschooler who saw a toy in a hypermarket, and Otherwise with a teenager who needs extra money for the concert of the band of his dreams. In the case of small children we should use specifics, because for a few-year-old scoundrels the terms "debt", "money" and "credit" are simply too abstract. Let's explain to the toddler that he will get a expensive toy for birthday or Christmas and has to wait for it.
 

In return, let's try to show the child how to spend an attractive time without new objects. Playing football, cycling or flying a kite are just some ideas for having fun together. When talking to an older child, we need to be honest and, above all, openly explain why we have debts. If we pay off a loan for an apartment or a car, our child should know about it. It will be easier for her to understand that although you can't afford everything, you live in a nice house and drive a new car.

Set an example to your child
 

Even the longest conversations and the best translations will not work if we do not follow the rules that we pass on to our child. A toddler who sees that we refuse to buy a new toy and try on shoes and clothes, will quickly lose confidence in us. Children, even the youngest ones, understand much more than we think. On the one hand, we should show the child that it is not the only one who has to give up some things, on the other hand, it is worth assuring the child that regular savings will bring the intended results and you will be able to pay off all debts.

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