Discussing finances with your children is quite a controversial subject to say the least. therapists feel your children should not be involved at all in the family finances yet if they don't learn at home how are they going to learn. I think it's essential for you to share things with the children in order for them to learn that there are reasons they cannot have every single thing they want. Failing to do so can create a sense of resentment in your child who will begin to think you are deliberately denying them things they want even during Christmas and their birthday.
another mistake parents make is to begin given them the information and then at the advice of one of these :professionals" they stop sharing. This then creates the sense of abandonment and causes the child to accuse the parent(s) of lying about the amount of money they have. No, children do not need to know how much money you have in the bank nor do they need to know how much money you pay in bills, but they do need to know why they can't have a new video system or game and why you can't afford to buy them designer clothing.
Another important issue in sharing finances with the children is so they will develop a sense of monetary responsibility. How are they going to learn money isn't endless unless the parents teach them the value of money? If you are out of work, they need to understand there is not as much money coming into the household as there was when you were working. Perhaps I am old school but I do not believe in shielding the children from the facts of life. Parental teaching involves showing them how to stretch a dollar and the experience they can can from seeing you do it far exceeds anything they can learn from books or other teaching that is not hands-on.
How much do you tell the children? It depends on their age. Of course you are not going to tell a three year old much beyond the basics. However, a preteen can absorb and understand much more and should be treated accordingly. Answer the basic questions--you don't have to go into detail but you shouldn't tell them "it's none of your business" either. Share enough so they understand why they can't have everything they want without providing more details than they are capable of understanding.
