6. “We can’t afford that.”
It’s easy to use this default response when your child begs you for the latest toy. But doing so sends the message that you’re not in control of your finances, which can be scary for kids, says Jayne Pearl, the author of Kids and Money. Grade-schoolers may also call you on this claim if you turn around and make an expensive household purchase. Choose an alternative way to convey the same idea, such as, “We’re not going to buy that because we’re saving our money for more important things.” If she insists on discussing it further, you have a perfect window to start a conversation about how to budget and manage money.
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