Kids notice things. You’re a little more stressed out. Going to the grocery store isn’t as much fun. You’re not stopping for a special treat after school. Inflation is taking a bite out of the family budget and your kids are wondering what’s going on. Here’s how you can talk to kids about inflation.

Explain What It Is

Unless they’re completely insulated from all forms of media, your kids have heard people talking about inflation. If they ask you what that means, explain it in its simplest terms: inflation is when the cost of goods and services rise. Almost everything becomes more expensive, and you must pay more for the things you regularly buy, but you don’t receive more — and sometimes you even receive less — even though you’re paying a higher price.

Talk About Wants and Needs

Inflation is a good opportunity to introduce or reinforce the concept of the difference between wants and needs. Explain that higher prices mean more of the family budget is going toward needs, such as food, clothing and toiletries. That means there is less leftover to spend on wants, like toys, movies, sporting events or birthday gifts.

Include Kids in Money Discussions

Kids get stressed out when they feel like they’re being excluded, or they don’t know what’s going on. When you feel it’s the right time, include kids in age-appropriate discussions about what’s happening with the family finances. Ask for their input in low-stakes financial decisions that will affect the whole family. For example, if you’re planning a trip, discuss the options and costs of flying vs. driving, staying in hotels vs. visiting family or even skipping the trip all together and planning a fun staycation instead.

Just be careful not to overshare. Keep serious money conversations — such as struggling to make the mortgage payment — between the adults in the family.

Make it a Teachable Moment

Have kids help with meal planning, grocery shopping, and other activities that involve the family budget. Let them brainstorm budget-friendly — yet delicious — family meals, give them a list of items to compare prices on at the store, and explain how generics and store brands are often the same products as the brand-names they know, without the fancy packaging and advertising dollars.

Offer Reassurance

If you notice your kids getting uncharacteristically withdrawn, or constantly asking questions about the family finances, be sure to offer reassurance. Explain that while inflation is a bummer, things will eventually even out and feel normal again.