Everyone has to know and understand recession these days, even kids. The young ones are always the most curious about things and they will most likely notice that you are budgeting more than what you did a few months ago.

They will surely be affected as well since they will have to deal with smaller allowance or controlled food. The entertainment for the family has been changed as well so that you do not have to spend a lot over the weekend with the kids.

They will surely ask questions. You need to be prepared with an answer.

Telling the Truth

Recession is a pretty difficult economic situation to explain to your children. But that does not mean you have to lie and make up stories about it. Be honest about recession since they will most likely have to learn about it today.

It would also be better that your kids would learn recession from you rather than other adults since their stories might just be confusing to them. Remember that you are only some of the few people who can really understand your children so it is better that the right facts could come from you.

Age Appropriate and Simple Words

Teaching your kids about recession is all about the words that you say. In fact, teaching everyone about recession is basically based on the words that you use to explain recession.

In the case of your kids, you do not have to use very complicated words to explain this phenomenon to your children. You well know that they will never understand a word that you said if you try to explain it to your kids as if they are economists.

Porting complicated words into simple ideas to your kids is actually a lot harder than you think. If you are not prepared, you might end up being confused yourself. That is why you need to research a little bit about recession before starting the talk about recession.

Going Back to the Basics

Starting out the talk about recession needs to be the talk about the basics. That means you have to talk about the demand and supply. In simple terms – buying and selling. You can compare a country to a business. They need to buy and sell things in order for the country to survive.

A country who can do good business can survive for decades without any problem. But sometimes, the country will experience problems with their buying and selling. If they buy a lot of things without selling the same amount of products, they will experience economic problems.

When they are not able to gain through buy and sell, they will experience recession. The concept of buying and selling is basic for kids since they see them everyday and this would even be easier if you have a business. Use a lemonade stand as an example of a business so that they can really have a good picture on what recession would really be.

Explaining Cycle

This story would be a little bit gloomy for your kids but you do not have to end there. They will naturally panic and be very concerned with the economy that they will not settle down. Give them the good news: although the country is having a little bit of trouble with money, it does not mean it will last forever.

The country will most likely be back on track. The government is everything they can to get out of this problem fast. In your end, you are saving as much money as you can so that you can survive recession. Give your kids hope so they would face tomorrow with confidence even with the pressing economic problem.