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Explaining Bankruptcy To Your Children: Tips From A St. Louis Bankruptcy Lawyer

Many parents find it difficult to talk about money with their child – and if you would like to explain the tough choice of bankruptcy, having a conversation about family finances could be even harder. However, child probably know more about the stresses in your life than you think and a great number of them worry excessively about you, your family, and possible issues. Not talking to children who are old enough to understand your home’s financial situation could increase worry and anxiety.

Here are a few tips about talking to your child about your family’s money issues:

• Use simple terms. To explain your money situation to your children, you do not need to cover the finer points of bankruptcy, foreclosure, and interest rates. You can, however, explain the simple concept of assets and debts.
• Share your financial plan. Children are comforted knowing that there is a plan for moving forward and fixing any financial problems that may exist. Share your plan for getting out of debt, reestablishing your credit, or saving for college – whatever challenges your family faces. If you don’t have a financial plan, make one!
• Let your child as questions. As tempting as it is to say, “Money is a grown-up issues,” if the child is old enough to ask, she is old enough to be let in to the conversation. Again, you don’t have to sit down with your files and bills, but you can give your child an honest picture of your financial situation and plan for the future.
• Make sure they know it’s not their fault. Children may want to blame themselves for money problems or a potential bankruptcy – surely it was the videogame that they got for their birthday that sent the family over the edge. Reassure them that any money issues that the family is struggling with was not their fault and that there are other, complicated reasons that you have financial problems.

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