We often talk about how debt or being overly indebted affects adults, but very rarely do we talk about how it affects children.

In this article we will look at ways that children are affected mentally, emotionally and socially by finance issues of the parents.

Children can sense when things are not right at home

Life is easy for children when things are going smoothly and there’s stability of some sort at home. However, life as we all know it, tends to be a roller-coaster ride especially when it come to finances.

It is no secret that children are often the ones who feel the heat the most whenever there is a disturbance in the home culture or just in their day to day life.

Here a few ways in which a child can be affected by your financial decisions:

Mentally

Shaping a young mind is already a difficult ordeal on its own. How much more when the said young mind must face mental challenges imposed upon them by the financial decisions of their parents?

You will notice that school grades may drop or things that used to interest them are no longer a priority. You may want to speak to your children when this happens because holding out on it may cause long lasting effects.

Children tend to take up the energy that they feel at home along with them. Try and make your home free of all negative energy. This will help in getting your child’s mental health in check. Sorting out your finances can positively impact the entire family.

Emotionally

Being a child can be difficult, especially where emotions are concerned. Seeing your parents going through any form of stress is not pleasant, whether it’s due to debt or otherwise.

From a child’s perspective a lot of emotions come to play when the parent is stressed about paying bills. On one hand your child wants the DSTV subscription, and on the other they know that mommy or daddy is having a hard time with paying any extra bill that may come across as a luxury.

Being transparent with children about the change in the family dynamics will help a lot. This will create an environment of trust between you as parents and your children. This will in turn help to simmer down negative emotions.

When a child knows that they can come to you with questions it takes the stress off of them. When you have an open relationship with your children it may result in them having a better understanding of the household budget and money in general.

Socially

Children may feel left out from social gatherings with their friends when things are not financially stable at home. This can cause a rift in their friendships and ultimately can be detrimental to their social life at school or in their circles of friends.

In the same way that taking their cell phones away from them makes them feel like their world is coming to an end, the same can be said about them missing out on “hanging out” with friends.

Although this may seem unimportant to you as a parent it can be quite a big deal to your children.

It is best to sit your children down and make them understand. Some gatherings they will have to miss out on and for the ones that you can afford you will do your best to accommodate them.

Lifelong financial lessons can start at an early age

Eventually children grow up to be their own individuals and can reflect on their fondest childhood memories. However, what they carry with them for the long haul are the values they were taught when they were younger.

Good money values, financial literacy, budgeting tips, tricks and wisdom nuggets are the foundations that can mold your children to be the very best, responsible versions of themselves.