Talk about it: Money

The news about the financial state of America can seem frightening. A recent email from the National Fatherhood Initiative was titled "You, Your Kids, and the Downturn." Here are the main points. Your kids may be wondering about the financial situation of your family. Ask your kids what they think about the news they hear, and what impact they've seen among their friends.

Tell your kids often that, no matter what the world is like, you love them and care for them and will do everything in your power to provide for them.

Talk to your kids honestly about your family's situtation. You don't have to share too many details unless you want to. Give age-appropriate overviews. Every age child should understand the purpose of a budget. Help your kids create their own budget for their money, and show them your budget. Help your kids see that money has to be earned before it can be spent. Help your kids who are old enough to work to find a safe part-time or summer job that can earn them the spending money they desire (instead of using your money).

Your pregnant daughter especially needs to create a budget for her expenses after her baby is born. How will she pay for baby clothing, food, diapers, doctor's visits, prescriptions, transportation, etc. in addition to her own expenses like her cell phone, gas money, car insurance, etc. How will she pay for babysitting while she is at work or school?

Have your pregnant daughter go to the store, not to buy but to write down the prices of the items her baby will need for one month. Add up all the costs, and compare them to the income she will have. What amount, if any, will you contribute to the care of her baby? What amount, if any, will the baby's father contribute? How much difference is there between the amount of income and the expected expenses? If the baby's father will not be helping with the baby and you are not able or willing to help with the baby, your daughter should investigate whether adoption would provide her baby with a better life situation.