The Mental Health Corner Archive

Economy can effect children emotionally


March 18, 2009

Helping your children survive unsettling economic times

Vivian struggled to understand what was happening in her home since her mother had been reduced to two days work per week with her job. Her parents spoke of different things that they were going to cut from the family budget in order to keep the bills paid, including Vivian’s weekly gymnastics class and several other extras she and her brother enjoyed.

Vivian feels confusion and even fear about her family’s financial stability and future.

These unsettling economic times can have a significant impact on children, where the uncertainty and anxiety experienced by parents and other adults regarding finances is passed to their children.


Helping Kids Cope
How can parents and other adults help children understand what is happening and better cope with their reactions?

In an article for the public published in October 2008, by the National Association of School Psychologists, a number of tips were listed for parents and teachers to help children cope. They include the following:
1) Schools and parents need to assess what level of support is needed by children in their care. Many children will not find the current economic crisis stressful, but others may. Identify those most vulnerable including children in families directly impacted by job layoffs or reductions.

2) Be reassuring to children, while acknowledging that economic challenges and uncertainty are unnerving, but the likelihood is that you and your children or students will be okay. Acknowledge and normalize their feelings, allowing them to discuss the feelings, concerns and questions they may have regarding current events nationally, in the community and the family. Be empathic listeners, letting them know that many adults feel the same way.

3) Take care of your own needs as adults so you will be better able to help your children. If you are anxious or upset, your children are more likely to be so as well. Avoid excessive use of drugs or alcohol to feel better. Maintain a normal routine. Keeping a regular schedule can be reassuring and promote physical health. Ensure that children get plenty of sleep, regular meals, and exercise. Encourage them to keep up with their schoolwork and extracurricular activities, but don’t push them if they seemed overwhelmed.

4) Spend family time doing enjoyable activities. This reinforces your children’s sense of stability and normalcy. Try to do things together, such as eat meals, read, play sports or games, go for walks, or watch non-violent, non-stressful television shows or DVD’s. You know your children best, and your love and support are the most important factors to their sense of security.

5) Emphasize your children’s resilience by focusing on their competencies in terms of their daily life and in other difficult times. Help them identify what they have done in the past that helped them cope with they were anxious or upset. As appropriate, remind them that the country, their community, and/or your family have weathered other challenges, including economic difficulties, and have come through even stronger.

6) Be optimistic even if the economic situation worsens. Most people will be fine physically and will find ways to adjust emotionally to their losses. Resilience studies indicate that people who cope best are comfortable expressing strong emotions, surrounded by caring family and friends, keep a positive view of the future, and utilize problem solving skills.

7) Be a good listener and observer, letting children guide you as to how concerned they are or how much information they need. If they are not anxious or focused on current events, don’t dwell on them. You should not bring the current financial crisis to their attention if it does not appear they have any questions and/or that it is generating stress. But be available to answer their questions to the best of your ability. Young children may not be able to express themselves verbally. Pay attention to changes in their behavior or social interactions. Most school age children and adolescents can discuss their concerns although they may need you to provide and “opening” to start a conversation. Don’t push the conversation.

8) Turn off or monitor the television because although it is good to stay informed, watching endless news programs referring to the economy in crisis or a possible depression is likely to heighten anxiety. Young children in particular are often unable to distinguish between news reports and their family’s reality.

9) Prepare your family for any anticipated family changes that may be due to financial circumstances or concerns. Do not hide the truth from your child. Acknowledge that change can feel uncomfortable, but reassure him or her that the family will be okay. Discuss events in age-appropriate terms, in terms that are appropriate to their age and developmental level. Update them as information changes. Young children may require repeated reassurance. Stick to the facts and include a positive element in your answers when possible.

10) Avoid speculating about what could happen and, avoid excessive blaming. Reinforce that most people want financial security for this country. Focus attention on what can be (or is being) done to address financial challenges for the nation, community, or for your family situation. Help children to explore and express their opinions respectfully.

11) Encourage your children to talk to you or another caring adult if they feel overwhelmed for any reason. Do something positive with your children or students to help others in need. Making a positive contribution to the community or directly to others in need helps children feel more in control and builds a stronger sense of connection.

Extreme Reactions

Although most children will not be unduly affected by economic events and many others cope fairly well independently or with the help of parents or other caring adults, some children have more extreme reactions because of personal circumstances. Symptoms differ depending on age. Adults should contact a health care professional if children exhibit significant changes in behavior or any of the following symptoms over an extended period of time. Preschoolers – thumb sucking, bedwetting, clinging to parents, sleep disturbances, loss of appetite, fear of the dark, regression in behavior, withdrawal from friends and routines.
Elementary school children – irritability, aggressiveness, clinginess, nightmares, school avoidance, poor concentration, withdrawal from activities and friends.
Adolescents – sleeping and eating disturbances, agitation, increase in conflicts, physical complaints, delinquent behavior and poor concentration.


Phil House, Psy.D.

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