Audio: Talking finances with kids

With the current economy in shambles, it's hard to decide what information to give your kids about your finances. How do you explain that a layoff may be looming? How much input should kids have on family finances?

It's no longer an option in today's world to spare your kids the money talk. They notice any signs of increased stress you're feeling. Being honest and giving need-to-know information can relieve their fears, and the more they understand about money, the more they'll know how to handle it wisely at any age.

Watch what you say and how you act around your kids. Kids are smart and they know when things are tense around the home, so do your best to keep your children at ease by discussing finances in a calm manner.

Decide what to keep confidential. Should you show your checkbook and mutual fund balances to your kids? Well, that's up to you. If your children are at an age where they can understand finances, let them give you their opinion. Sit down and decide how together the family can cut down on expenses. 

To find out more on this and other finance issues, log on to Bankrate.com, I'm Haley Lyons.

Posted: Jan. 19, 2009