Helping Your Kids Understand a Financial Crisis and When to Take Out a Credit Union Loan
Financial struggles affect most people at some time in their lives and can take a toll on the whole family. You may want to protect your children from your financial worries, but open communication can actually help them feel more secure even in tough times. It’s also a great opportunity to teach your kids about budgeting, the importance of saving money and how a credit union loan can help your family make it through financial adversity.
1. Be Honest
Explain the situation in a simplified way without including unnecessary details that may cause alarm. Be concise but clear about the need to cut expenses, and let your kids know that some changes will be happening. Listen to their concerns and answer any questions they may have.
2. Involve Your Kids in Creating a New Family Budget
Getting the whole family involved builds a sense of teamwork and unity, and your children will feel like their opinions matter. Take a look at your monthly income and expenses and create a new budget. Go over it with the family, and give your children choices about keeping the things or activities most important to them. Show older children how you pay the bills and balance your bank account. Posting the budget on the refrigerator and updating it frequently can teach your children a lot about how the little things can add up. A constant visual reminder will also help them learn to manage money effectively.
3. Stay Positive
Keeping a positive attitude about your finances will help your family avoid unnecessary stress. Make savings a game — have family competitions to see who can find the best prices on movie tickets, groceries and other household items and activities you enjoy. Brainstorm ideas low-cost activities like free museum and zoo days, free concerts, visits to the park, and cultural events. Encourage them to come up with new ways to practice old routines like dinner and game night at home instead of going out for family night.
4. Don’t Be Afraid to Say No
From tantrum-throwing toddlers to eye-rolling teenagers, parents have to deal with the challenges of telling their kids “no” quite often. It can be tough, especially on special occasions or holidays or when they’re disappointed about not being able to do or receive something they expected. There are plenty of ways for kids to earn their own money and learn the value of saving for something they want. Pay them an allowance for chores and special jobs you’d like them to do. Teenagers can make money outside the home through babysitting, doing yard work or even getting a part-time job to earn some cash.
When to Take Out a Credit Union Loan
If you’re experiencing financial difficulties, mortgage refinancing or a personal credit union loan may provide effective solutions that can help you get back on track. Find out if taking out a loan is right for you. Contact Clark County Credit Union today at 702-228-2228.