Personal Finances
Talk to children about debt problems
Thursday, August 27, 2009
Brafton
In a recent story for USA Today, Sandra Block noted that some parents may find it awkward to talk about their family's finances with their children. They may also feel like protecting them from the truth.
However, Howard Dvorkin, founder of Consolidated Credit Counseling Services, told Block that the children will probably figure out that something is wrong.
"If you don't address it straight on, they really start to imagine things, and they'll imagine things for the worst," Dvorkin told USA Today.
There are a number of steps parents should take, which would include setting up a family meeting to discuss debt problems. When doing so, parents should keep the conversation positive and should make sure it is age appropriate.
Parents should also make the family meeting a learning experience that will give their children knowledge they will be able to use later in life. According to a recent report from CNN, the earlier parents start teaching their kids about money, the better. In later years, teens may be less likely to heed their parents' advice and may have already developed negative habits with their personal finances.
