Money and Children: Don't Let The Economy Frighten Your Children -- Tips From Consolidated Credit Counseling Services on How to Address Money Matters With Children

Warning to parents: if you do not address financial issues with children, they may suffer undue anxiety and behavioral problems. Millions of parents around the country are helplessly watching their finances dwindle and their bills mount.

Fort Lauderdale, FL (PRWEB) April 8, 2008 -- Many people don't have enough money to maintain their lifestyle. They turn to credit cards (http://www.consolidatedcredit.org/debt-management/debt-consolidation.aspx) to make ends meet, and their children are beginning to notice. According to the Federal Reserve, borrowing from credit cards and other unsecured lines of credit rose to $937.5 billion.

Children notice changes at home. When parents start to alter their spending habits, no more Friday pizza or renting movies for example, it sends a message that something could be wrong.

"Do not ignore your children's questions because then you leave them with no other option than to create their own reasons why you are cutting back on spending," says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. a national non-profit agency. "Children are not prepared to cope with these issues on their own as it can have a negative impact on their behavior, schoolwork, and they may become overly worried," Dvorkin continued.

Parents need to sit down and talk with their kids about money (http://www.consolidatedcredit.org/debt-learning-center/booklets/kids-and-money.pdf). Be honest but don't be all doom and gloom. To make this task easier, the experts at Consolidated Credit Counseling Services have created a booklet "Talking Money with Your Kids". The free booklet gives parents guidelines on how to approach money topics with children. To get a free copy go to Consolidated Credit's (http://www.consolidatedcredit.org/debt-learning-center/self-help-booklets.aspx) web site.

Do not let children feel like they're victims of money. Show children that you're in control of your money, not the other way around. When a child asks for something that you do not want to buy, tell them "I haven't budgeted for that this month," or "I don't choose to use our family's money for that." By speaking with your children you are also giving them an education on the financial aspect of life. Teach them the importance of saving and what can happen if they spend recklessly. It's also a good opportunity to talk about the importance of school and getting good grades, which can lead to a career that affords them financial stability.

Above all stay positive. If parents stay poised and even-keeled, children will notice and it will make them feel better and more confident. Many families are getting help from experts. Consolidating debt into a single low-interest monthly payment can save thousands of dollars and speed the process of paying off debts. And as a bonus, over a period of time people usually improve their credit score because they make consistent monthly payments to creditors while reducing their debt much faster. To find out if a credit counselor can help call 800-728-3632 or visit www.ConsolidatedCredit.org.

We may not be able to do anything about the sagging economy and the rising cost of gas and groceries, but we can influence children by showing them that no matter how tough it gets, we will keep working hard and looking on the bright side. They will remember that and appreciate it when they are parents.

About Consolidated Credit Counseling Services, Inc.

Headquartered in Ft. Lauderdale, Florida, since 1993, Consolidated Credit Counseling Services' mission is to assist families in ending financial crisis and solving money management problems through education and professional counseling. The firm is a nationally recognized, federally approved, non-profit, tax-exempt organization. www.ConsolidatedCredit.org.

###