Talking to your kids about money during these uncertain times

Including children in budgeting could help give them some sense of control

- Ann Carrns

Stock market gyrations. Inflation. Layoffs of federal workers. A possible recession. Children may overhear their parents talking about these things and not fully understand what is going on or how it may affect the family's finances. But if the children have questions, parents should be ready to talk, experts say.

"Parents are the biggest influence on kids' financial learning," said Dr. Ashley LeBaron-Black, an assistant professor of family life at Brigham Young University.

Here are some tips for having conversations about money.

DO CHILDREN PAY ATTENTION TO THE ECONOMY?

The US economy seemed on solid ground at the start of 2025 but growth has slowed in the first quarter amid uncertainty surrounding President Donald Trump's tariffs. Inflation has steadied, but the threatened tariffs could push prices higher again. At the same time, high borrowing costs are weighing on households, particularly those with lower incomes, and more people are late in paying credit card bills.

The stock market has whipsawed as Mr. Trump has repeatedly revised his tariff plans. And consumer expectations for the economy in the coming months have soured.

Parents should not assume that their children are oblivious to these issues, said Ms. Rebecca Maxcy, director and principal investigator at the University of Chicago's Financial Education Initiative.

Younger children may not grasp the details, but they are likely to have overheard adults discussing prices at grocery stores and restaurants. And they are probably hearing unfamiliar terms, like tariffs, from television, online or from friends at school. For example, news reports have discussed the possible impact of the Trump administration's proposed tariffs on the pricing and availability of the new Nintendo Switch 2 video game console, an item of interest for many children.