How to Explain Economic Recession to Your Kids
Grown-ups are very well aware of the term ‘economic recession’ but when they start discussing it, kids turn inquisitive and start asking questions to know the meaning of the word. Kids may even hear the term being used by teachers or classmates and may want to know what it means. However, you can’t use advanced terms to explain the meaning of economic recession to children, and will need to employ simpler methods and examples for their understanding.
Instructions
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1
Use age appropriate methods
In order to help your kid understand the meaning of the term, you must use the age appropriate words. Realize that a 2nd grader will not be able to match the level of a 6th grade student, and both will need to be dealt with differently. Kids often face difficulty in understanding rich vocabulary, so you will have to use simple terms and concepts. -
2
Explain the concept of buying and selling
For starters, you will have to explain the concept of buying and selling to your kids. Tell them that it is important for everyone to pay for the grocery, gasoline and other stuff otherwise it will be impossible for anyone to earn a living. Now explain to them that all of this is called ‘economics’. -
3
Tell them about the speed of economy
The next important thing is to explain the speed of economy to your children. You must tell them that at times the economy moves very fast and people like to invest too much nationally and globally and then there are times when the economy is slow and people start pulling out their investments. You should tell your kid that if the economy is running slow, people will stop investing and pull out their money, this is called ‘recession’. Make them understand that when there is no or low investment, there will be less job and business opportunities and the process of buying and selling will slow down. -
4
Tell them there is nothing to worry
Some of the children might not be affected by this explanation while others may get really worried. You must tell the children that there is nothing to worry about and that economists and world governments are always working to fix the situation.
