The King Times

King International

4/1/2015

The Impact of Parental Financial Issues on

Children
By Janae King
The phrase money cant buy

problems (povertyusa.org).

happiness is something that

Financial problems are more

many people debate daily.

common than one may

Once you have money and

think. These problems

your immediate needs are

within families puts a

secure, money no longer has

multitude of stress on the

the same appeal or dire

parents because they cannot

importance as it once did. But

provide for their family.

what happens when you

When talking about how

"When children are inappropriately exposed to

adult financial problems and conflicts, they are
left feeling anxious and insecure," says financial
psychologist Brad Klontz.

dont have enough money

money issues effect people,

and your needs are not met?

children are often over

Many people in these

looked. The stress that is

situations think if only I had

talked about, is usually only

(insert amount of money here)

in the context of the parents,

then everything would be

but what should be a hot

okay. I would be happy.

topic is the effect financial

Unfortunately this is the

issues have on the children

reality for over 46 million

in these families, whether

Americans that are living in

they be children, teens, or

poverty and the other couple

young-adults. Even the

of million Americans that are

youngest children can pick

having other intense financial

up on the stress parents or

[Edition 1, Volume 1]

Signs Your Child is

suffering from
your Financial
Situation

changes in eating
patterns
changes in sleeping
patterns
increased clinginess
or whining
regression, or a return
to behavior
characteristic of a
younger child
increased fear of
separation from
parent
appearance of new
fears
increased aggression
decreased
cooperativeness;
increased irritability,
decreased frustration/
tolerance
withdrawal/subdued
or sober mood
Increased behaviors
parents/caregivers
view as attentionseeking".

caregivers feel as a result of

children in many different

Even though the majority of

the economy and personal

ways. It can lead to problems

financial stress will fall on the

financial anxiety. (Southwest

in school, home, and social

parents in the families, it is

Human Development)

settings because of a constant

unwise to ignore the effects on

Children know when

state of worry. Children

the children because it can

something is wrong. When

should always be a priority

affect their lives in a large

parents are stressed about

when it comes to finances,

way. People who are suffering

money, it is easy for children

especially when it is lacking,

from financial issues often

to pick up on it. This may be

but never to the point where

think that more money is the

because they dont have what

they feel as responsible for the

solution, which brings us back

they need because their

problem and for solving it, as

to our debated concept that

parents cant afford it, or even

the parents do. One common

money cant buy happiness.

because they notice changes

mistake that parents make

Although it may not be able to

in the behaviors and attitudes

when trying to include their

buy everlasting happiness, it

of their parents. It is

kids in the reality of their

is important to remember that

important to talk to children

family situation is to cross

money for some, can mean the

about the financial problems

financial boundaries. A brief

difference between having

in simple terms that they will

list of boundaries parents

nothing and having

be able to understand. This

should not cross are:

everything, if just for a

way the child is involved even

in a small way, and they dont
feel hopeless or out of the
loop. Sometimes not
knowing something can do
more harm than good, not
only for a small child, but also
for a teenager, or young adult.
It is important not to get them
too involved though because,
"when children are
inappropriately exposed to
adult financial problems and
conflicts, they are left feeling
anxious and insecure," says
financial psychologist Brad
Klontz. (creditcards.com) It is
important that the parent does
not put the burden of the
problem on to the child. This
can create financial anxiety.
Financial anxiety effects

Sharing all financial

worries with the child,
sparing no details.
Using money to control
children.
Using the child as a gobetween when arguing
with spouse or exspouse about money
issues.
Asking the child to
answer the phone when
creditors call, or to lie
about the family's
financial situation.
Asking the teenager to
help make important
financial decisions,
expect him or her to
balance the checkbook
or to contribute to
household bills.

(creditcards.com)

moment.

References:
http://www.creditcards.com/credit-card-news/financial-incestparents-children-money-problems-1264.php
http://www.swhd.org/get-help/parenting-resources/impact-offinancial-problems
http://www.povertyusa.org/the-state-of-poverty/poverty-facts/

Janae.king@vikings.berry.edu
King International
Berry College Spring 2015