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Debt Creates Side Effects for Children - BlackBird Finance

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How Debt Creates Unexpected Side Effects for Children


We all know that debt is not a good thing. Who wants to owe someone else money?  Most people get really good at being accustomed to their debt and living with it. They stop realizing the greater effect it may be having on them, their family, or their children.


What You Will Take Away From This Article


-Money stress is negatively impacting your child’s development. Debt is a leading cause of money stress.

-Working to improve your families social economic status will improve your child’s linguistic and cognitive development for the better.

-A parent’s materialism especially from dad’s impacts the parent-child relationship leading to undesirable behaviors for the child over time.


Child Development


Children observe and learn from their environment. As research continues to come out about child development we understand how the environment and interactions from a parent contribute. Often it might be unconscious behaviors that lead to different outcomes for a child. Parent money behaviors and financial situations play a bigger role than we once thought. Trying to hide those behaviors may not work as well as you think.


MMoney stressed mom with childrenoney Stress


Money stress from debt can be a factor in child development. Although your child is probably unaware of the family’s actual financial situation there are various behaviors they may be picking up upon. A stressed parent has become a significant factor in the parent-child interaction (Thompson & Foster, 2014). Having lots of debt is a huge reason an individual or couple may feel stressed. Sadly, money problems are also a large factor in divorce. It is worth a read to understand common money problems in relationships.

As a parent, although you may not think you are outwardly demonstrating stress you would be surprised what is being picked up on by your child.


Family Economic Status


Thompson & Foster were also able to learn from their study that a parent’s social-economic status was linked to the linguistic and cognitive development of a child (2014). The lower the economic class the less desirable outcomes for the child. Some of you may be attesting there could have been other factors. Well in this study they removed all the other variables to solely focus on social-economic status.


“If linguistic and cognitive development of a child is affected by your financial situation, then what should you do?”


Well you can’t control the social-economic status you are born into, but you can control what you do about it. You live in a great country that allows you the freedom to do so. Putting the effort into getting out of debt and building your wealth isn’t easy. It takes grit to work two jobs or put in overtime or cut back on the beer budget. Remember though you are the unsung hero that can improve your children’s life. So, work hard now for a better future for yourself and the future generations of your family.

Child reading



Let’s start with how does one get into debt? The equation is simple, spend more money than you have coming in. We live in a very materialistic world. Wanting something you don’t need is an easy notion to get caught in. We want others to think highly of us so we buy luxury handbags or upgrade our vehicles. Status symbols. Have you ever found yourself spending hours researching a product? Then without having the money saved, you justify purchasing it. Then you have a brief moment of joy before you see the credit card bill. This is materialism in a nutshell.

A new study shows that a parent’s materialism consequently negatively impacts their relationship with a child (“Economics,” 2020). It appears that the relationship between father and child is more affected than the mother and child’s relationship (“Economics,” 2020). However, that isn’t a hall pass for you moms. This creates issues over the long-term it isn’t something you notice instantly like in a fight. A strained parental relationship can lead to children with social issues and attention-seeking behaviors. Not something parents desire for their children. Think twice the next time you think you are innocently purchasing something online. Instead, put that money in a college savings account.


Final Encouraging Thoughts!


Lastly, remember it may not seem easy when you are in over your head with debt and living paycheck to paycheck. There isn’t a quick fix solution. However, it’s possible to get back on track, plenty of people have pulled it off and you can too!

Here are two things you can do to get started on getting out of debt. One, read  Get Out of Debt: Easy Tips. Two, set up a time to chat with a money coach to see how we can help.




Economics – family and economic issues; new family and economic issues findings has been reported by investigators at dalhousie university (daddy, mommy, and money: The association between parental materialism on parent-child relationship quality). (2020, Oct 03). Psychology & Psychiatry Journal Retrieved from https://www-proquest-com.devry.idm.oclc.org/docview/2447274725?accountid=44759

Thompson, R. B., & Foster, B. J. (2014). Socioeconomic status and parent-child relationships predict metacognitive questions to preschoolers. Journal of Psycholinguistic Research, 43(4), 315-33. doi:http://dx.doi.org.devry.idm.oclc.org/10.1007/s10936-013-9256-4