SAN DIEGO (KGTV) — With rising economic uncertainties affecting families, educators and mental health professionals are stepping up to help parents navigate conversations about financial responsibility with their children.
Programs like Junior Achievement's BizTown are teaching kids the importance of money management in an engaging and age-appropriate manner.
At BizTown, fifth graders participate in a simulated economy, using play money and fake checks to understand financial transactions. Students learn firsthand that to acquire money, they must engage in work.
"Because you have to work for your money ... instead of just getting it," shared student Elizabeth Chambers.
Elizabeth's father, Steve Chambers, noted that the current economic climate has prompted many questions from his children.
“I think they're starting to, you know, understand that ... the value of things have gone up, so they're asking how much things cost and things like that,” he said.
Recent data from the Budget Lab at Yale University estimates that families may face an increase of at least $4,900 a year in living costs, heightening the need for budget-conscious decisions. Families may have to sacrifice certain expenses, such as vacation trips or new toys.
Dr. Gabriel White, a psychiatrist with Kaiser Permanente, has observed a rise in anxiety among patients due to economic concerns. He suggests that parents explain the difference between wants and needs at a child-friendly level.
“So you can have this, but you can't have that, right? There just isn't the money for it," he advised. "Be firm, so don’t say you’re gonna set a limit if you’re not gonna do it because you lose credibility then.”
Dr. White also encourages parents to allow children to express their feelings regarding financial limitations, while maintaining clear boundaries. He recommends gradually adjusting limits if children do not respect established boundaries, suggesting that parents avoid extreme consequences and instead offer more gradual options for discipline.
As family discussions around financial health continue to evolve, local educators and professionals remain committed to supporting parents in fostering financial literacy and emotional well-being for the next generation.
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