Financial Psychology: Concern

From curiosity to comparison, we’re giving parents the resources they need to answer kids’ tough money questions.  For our final question in this series, we address a top money concern that kids might have.  

Mom, what would happen if you lost your job? 

Little kids can have big worries.  Job insecurity or job loss is a real concern for countless American families.  As parents, we can acknowledge the fear without dismissing it.  We can let our kids know how we prepare for the unexpected through our financial planning.  We can also fill them in on the ways the government supports people who have lost their jobs.  

4 Points to Consider and Discuss With Your Kiddos

1. Some families save for a rainy day fund to help cover expenses in the case of job loss or unexpected illness or injury.

2. Other families get help from family and friends when a parent is out of a job. They might get childcare from a friend or live with grandparents to save on housing.

3. Many families will have to adjust their budgets and make some financial changes while a parent is unemployed.

4. The government also provides unemployment benefits, or weekly cash payments, to workers who are out of a job to help with essential expenses like food and housing.

Equally as important, parents can keep kids informed and in the loop when looking for new employment, whether it be through a job agency, online job search platform or personal network. 

The goal?

We can use this hard question to show our kiddos how we are planning for the future and making financial decisions that are in the best interest of our family.  In the end, we hope to make our kids feel safe, secure and cared for even in the midst of challenging circumstances.