How Financial Strain Affects Children’s Well-Being And What You Can Do About It

Financial struggles can have a significant impact on children’s physical health, mental health, behaviour, academic performance, and overall well-being.

As parents and foster carers, it is important to understand how financial strain can affect children so that we can provide support and minimise any negative effects where possible.

Today, we will explore the ways financial difficulties can impact children and suggest some strategies for coping during tough economic times.

Child Poverty in the UK

Unfortunately, a significant number of children in the UK grow up in poverty. Government statistics show that in 2019/20, 30% of children (over 4 million) were living in relative poverty after housing costs.

This means their family income was less than 60% of the UK median. Child poverty rates have risen in recent years, exacerbating financial strain on families.

How Financial Strain Impacts Children

• Physical health effects – Financial strain is linked to poor nutrition and inadequate healthcare access for children. Families under economic pressure may cut costs by buying less healthy food options or skipping preventative doctor’s visits. This can lead to issues like childhood obesity, asthma, and tooth decay. Providing nutritious meals and maintaining medical care should remain priorities.
• Mental health effects – Financial stress is associated with increased anxiety, depression, and behavioural problems in children. Financial worries and seeing parents distressed about money can create emotional turmoil. This may show up as irritability, angry outbursts, trouble concentrating, sleep issues, or loss of interest in normal activities. Watch for any mood/behaviour changes.
• Academic effects – Kids in lower-income families tend to have lower academic achievement and educational attainment. Parents under financial strain may be less able to afford learning materials, academic tutoring, or extracurricular activities to enrich education. Difficulties concentrating due to stress can also impact school performance. Maintain school engagement and seek available resources.
• Parent-child relationship effects – Severe financial hardship can negatively impact the interactions between parents and children. High stress levels can result in parents being less emotionally available. Harsh discipline practices may increase. Strong communication, showing affection, and maintaining realistic expectations of kids’ behaviour can help buffer relationships.

What Parents and Foster Carers Can Do

• Communicate openly – Have age-appropriate conversations with kids about financial changes and the importance of budgeting. Include them in making economical choices for meals and activities. Discuss worries in a solutions-focused way.
• Prioritise essentials – Try to maintain adequate housing, nutritious food, medical care, and education access above all. Government benefits like housing allowance, income support, child benefits, disability allowances, winter fuel allowance, and foster care allowances can help cover basic needs.
• Find low-cost resources – Research free/reduced-cost options for children, like museums, parks, libraries, recreational centres, and community events. Look for inexpensive ways to maintain fun, like camping, hiking, board games, cooking, or movie nights.
• Offer emotional support – Provide a nurturing environment through reading, playing, cuddling, and showing affection. Listen to children’s concerns and reassure them. Model healthy coping like exercise and social connection. Seek counselling if needed.

Financial struggles can negatively impact children in many ways. However, focusing on meeting basic needs, maintaining school engagement, strengthening family bonds, and tapping local resources can help safeguard children’s well-being. With some resilience, creativity, and support, families can weather tough times.