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How to Talk to Kids About Cutting Back

How to Talk to Kids About Cutting Back – tips about how to talk to your children about budget changes in the household. Rather than keep kids in the dark about it, it’s probably best to carefully clue them in to financial changes, so they can understand the situation and circumstances.

Here are some tips and advice on how to talk to kids about cutting back.

How to Talk to Kids About Cutting Back Tips

Consider age – You’ll have to do more explaining for younger children.  Be sure to use words they can understand and tell them why it is important to save money.  Keep talking to them in the days and weeks to come, because they may not fully understand right away.

Don’t feel guilty – You are doing what you need to do at the moment. Do not feel bad, and don’t let your children blame you for having to cut back.

Back to basics – Express to your children that cutting back on expenses is not necessarily a bad thing. Being on a tighter budget can be an opportunity to teach kids to enjoy the simple things.  You’d be pleasantly surprised how much they may enjoy themselves.

Empower your children – Especially for older children and teenagers, let them in on the decision-making process.  Allow them to provide input on where to cut back. When money is tight, it’s wise to give children choices within limits. If you can only afford one extracurricular activity, encourage kids to decide which is most important to them.  Ask them ‘How do we make your activities fit this new budget? You help me decide.” Let them choose the one they most want to attend.

Be realistic, yet hopeful – Be upfront and honest. Explain the reality of your economic situation to your children, but try not to worry them.  Also, try not to talk to them before bedtime because some kids worry more at night.


For more tips on how to to talk to kids about cutting back, visit

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