Subscribe to our mailing list


Parents’ Debt Affects Kids

By on March 2, 2016

Stress has many causes but since the economic recession in 2007, financial instability is the major cause of stress. The economic recession led to increment in unemployment and inflation thus low income and loss of monetary value. The rampant increment of goods and services prices has made financial instability more rampant in the current world. Parents have to ensure their kids acquire the basic needs at all time since the kids are dependent to them. The expectations by the kids that the parents will always provide for their needs leads to parents acquiring unsecured debts. Unsecured debts for instance credit card debts have high interest rates and short payment periods that lead to stress among the parents, as they have to pay the debts and continue providing for their kids with their low income.

The parents tend to think that their financial stress does not affect their kids but many researches portray that parents’ stress affects about 91% of kids, since financial instability is one of the main causes of stress; I believe that parents’ debts affect kids.

Ways that Parents’ Debt Affects Kids

According to Lawrence M. Berger, a professor of social work at the University of Wisconsin-Madison, secured debts tend to affect children negatively. Unsecured debts lead to stressed parents, ultimately sabotaging everything positive you do as a parent. The aim of this paper is to illustrate the ways that these unsecured debts, such being credit card debts and the effect on kids. In the study authored by Lawrence, he portrayed that parents with unsecured debts had higher levels of debt thus making them stressed and depressed more than those without unsecured debts. Children whose parents had unsecured debts were illustrated aggressiveness, anti-social behaviors and stress; whereas those without unsecured debts did not show much emotional stress and erratic behaviors.

The ‘Growing Up’ in Ireland survey states that most of the parents do not reveal their financial instability stress to their kids thus most kids are unaware of their parents’ financial problems but the inability of the parents to deal or hide their stress makes the children feel insecure, alienated and sad thus resulting to emotional and psychological problems. These claims concur with Drew McWilliams, a clinician and Chief Operating Officer at Morrison Child and Family Services in Portland, who claims that children suffering from depression, anxiety and post-traumatic stress experience these conditions due to parental negligence.

Unsecured debts as earlier discussed tend to cause more anxiety and stress to the parents, the parents may tend to work more to pay the debts thus limiting the time they spend with their kids. The sudden change of events is hard for the kids to take thus they feel neglected. Parents’ poor stress management may result to spill it over to their kids by scolding them or physical abuse thus resulting to stress to the kids. Lastly, parents’ high level of debts may result to inability to provide for the kids what they are used to thus resulting to the kids feeling unwanted and anti-social due to the status of their friends.

Therefore, it is important for parents to understand that their kids are affected by their stress thus limit issues that may stress them more than they can handle or open up to their kids on their financial instability.

This article by John McConnell first appeared on Pyramid Credit Repair and was distributed by the Personal Finance Syndication Network.

If you would like to contribute a guest post like this one, click here.

About Guest Post

If you would like to contribute a guest post, click here.
%d bloggers like this: