Saving as a family – explaining it to a child

The last few years have been financially challenging for many families. Some have had to make do with a lower family budget due to economic changes such as inflation.

Other changes in circumstances such as training and further education, another child or a separation can affect the family finances. Perhaps you’re thinking: “I don’t want to bother my child with the family budget.” However, it’s a simple fact that children notice things that are bothering their parents, including money worries. So it’s good to talk to teenagers and children of school age about the family budget openly and involve them. This way they’ll learn that a budget can both increase and decrease.

Of course, not all families live on a budget that was drawn up at the start of the year and approved by the “family council.” But if your income changes dramatically, as a parent it makes sense to sit down and draw up a family budget. This budget will then be the basis for a discussion with your kids.

If spending needs to be reduced, each family member should have a say in deciding what expenses should be cut back. Everyone is entitled to say what matters most to them and to identify where the family could be more frugal. Perhaps your daughter may be willing to go to the hairdresser less often, but not to give up membership of her basketball club. Or if, as a family, you decide that family outings are a must-have, then this can simply be a nice hike rather than, say, a weekend away at a leisure park. Everyone should contribute their ideas to save money.

Long-term unemployment, a separation or a drop in income when budgets are already tight can make it very difficult to make ends meet. In this situation, parents should seek professional advice as soon as possible. For example, from a budget advice association (german) or welfare services. Explain to your children that you are looking for help and will receive it. Depending on your situation, it may make sense to go to counselling as a family.