1. Explain the situation in simple terms. But remember, they don’t need to know every detail as it will over-burden them.2. Encourage your child to earn their own money
3. Help your children budget their pocket money. This will encourage them to prioritise and will also teach them vital skills for later life too.
4. Encourage them to save for the things they want. This gives them a sense of ownership and satisfaction. It also gives an extra value to the item they have bought.
5. It is important that your children have a sense that the entire family is in it together.
6. Make sure they know their input is just as important – in fact, they might come up with good money-managing ideas you might have missed.
7. Don’t be afraid to apologise to your children if your debts are a result of your financial mistakes. Let them know they can ask you about anything and you won’t get cross (this might require a lot of self-control on your part!)
8. Think of the most fun things you can do together which don’t cost money.