Everybody’s talking about money these days: House prices are going down; grocery bills are all going up – and uncertainty over when things will take a turn for the better is making everyone tighten their belts.

But how do parents explain this to their fashion-conscious middle-school kids? How about teens with dreams of out-of-state college or a new car?

What to say

Be honest with your children – but don’t tell them more than they need to know. Avoid overloading older kids with too many details or worries that might scare them. Stick to brief explanations, and be clear about changes made to the family budget.

Talking to younger kids

Ali is 6. Her best friend just got a new doll for her birthday – the expensive kind that you know you can’t afford. Ali starts to whine, “I never get anything I want. It’s not fair…”

It’s hard to keep your cool when you’re working hard to keep the family afloat, or stressed out because the bank has threatened foreclosure. Take a deep breath and stay calm. If necessary, tell your child that you’ll talk about it later, then be sure to set aside time to do so.

Remind yourself that it’s OK to reject pleas and set limits. You’re not depriving your children – you’re teaching them important lessons about delaying gratification, earning treats and rewards, and about family finances.

When you’re ready, tell your child that you cannot buy new toys right now, but perhaps the toys can be put on a wish list for the next birthday, Christmas, Hanukkah or other gift-giving occasion.

Talking to preteens and teens

Morgan, 11, is going to another birthday party. It’s a sleepover, and she insists her friends will all laugh at her if she brings the old sleeping bag again – it’s so last year.

Kids this age may not be interested in the global economy or why money is tight, but they can be told that there is a limited amount of money in the family budget.

When talking to your kids, let them know that they’re not alone in their desires. Say how you feel when you see something that you want, but can’t purchase it right away. Explain that everyone in the family has to cut down on spending – including you – and remind them that, if they’re really motivated, there are ways to earn money and work toward the things they truly want. Encouraging kids at any age to find creative ways to save or make money not only helps them feel empowered – it helps them feel like they’re doing their part to help out.

What else you can do

¢ Family meetings are a great way to establish these new rules, even if they’re temporary until family finances are in better shape.

Explain the new rules and also new opportunities for earning privileges and treats. Make it fun: Challenge kids to come up with family-friendly, cost-effective activities that everyone will enjoy, like bike riding together or free movie nights.

Once you’ve had “the talk” with your kids, keep a list posted – perhaps on the refrigerator door – of the new house rules so that everyone knows what is expected of them.

¢ Manage stress levels. Support groups are offered through local hospitals, churches, synagogues, libraries and schools. And tell your doctor, who may be able to put you in touch with counselors or suggest therapeutic strategies – such as relaxation techniques, exercise or yoga – that can help you feel better and learn to manage your stress.