How does Financial Conflict affect children in the home?

As we’ve previously established, conflict affects the whole family system, so it goes without saying that conflict around finances is no different. Most parents try to shield their children from any financial hardship, but in many cases children can still feel the tension surrounding the subject through the home. One effect that having financial conflict in the home might have on a child is in their behavior. Children are more likely to act out at school or in the home if they feel the strain between their parents. Preteens and teens are particularly affected by financial issues. Financial conflict in the home also has an impact on the development of young children. It can have an affect on the child’s mental well being, causing stress and anxiety. The mental health challenges that financial conflict introduces to the child can also keep them from developing socially at school. Children with financial conflict in their home scored lower than kids in stable homes in cognitive, social-emotional, and physical development (Hill, 2013).

One thing you can do to counteract the negative impact is to be open and honest with your children about the conflict. By trying to hide any financial disputes or keep it secret, you might be doing more harm than good (Hansen, 2024).

There are many great resources on what to do about conflict in the home and many more about how to manage financial conflict specifically. For financial education you can go to https://treasurer.utah.gov/utahfe/financial-education-for-adults/.