Why You Should Never Tell Your Kids “We Can’t Afford It”

One big challenge parents face is how to communicate with their children about money.

Here’s why telling your kids “we can’t afford that” is not going to set them up for financial success. 

Healthy Financial Mindsets

Whenever children hear “we can’t afford it” (especially repeatedly) it might cause them to internalize this scarcity mindset. Later in life your child might not feel confident taking charge of their finances or finding creative solutions for their money goals. 

Use your finances as a teaching lesson

Rather than saying “we can’t afford that” use this financial challenge as an opportunity to teach your child about setting financial goals, budgeting, and how important delayed gratification is. Being open and honest about money will set your child up for greater financial success later in life. 

Money isn’t taboo

Talking about money, especially with your children can feel a little taboo. Let’s change that! When you avoid saying “we can’t afford that” you can help your child lay the stones for a positive and healthy relationship with their finances.

You can emphasize that money is a tool to help you get what you want and need. Help them understand that managing money is about making conscious choices and focusing on what they really want and value, not what they are told they should want and value. 

Talking about money with children isn’t always easy. As a parent, you know that your kids are like sponges! They take in everything you say, whether you want them to or not. Keep that in mind when you’re talking about money and financial management. Use the influence you have over your kids to empower them to be resilient and dedicated when it comes to money.