When Your Child Is Surrounded by Rich Kids – And You’re Not Rich

“It’s a great basis for starting off a discussion on finances,” Hartman said. “Talk to your children about how ‘Maybe we don’t make as much money as the family next door, but maybe your dad is able to go to all of your baseball games.’”

Hartman also advises parents to explain to their children that different occupations have different compensation levels and that people make decisions about their career and finances for many different reasons.

“This is a great opportunity to show your kids why you chose your occupation and why you love what you do, even if you don’t make as much money as someone else,” Hartman said.

Summers, who works as a massage therapist, agrees. She says her daughter understands that people earn different compensation for different jobs and that there will always be people who are richer and people who are poorer. She tells her daughter that the world is full of opportunities to make whatever kind of life she wants.

“I have been clear from the beginning that a wealthy person is not a better person, and a wealthy person does not necessarily have a better life even though they may have certain advantages,” Summers said. “The possibilities that are available to a wealthy person are also available to my child. After all, they are in the same school.”

Hartman says these situations are the perfect time for parents to talk about budgeting, spending, and saving in kid-friendly terms. For example, parents can involve children in efforts to save for a new home or even for college. They can also explain to them how credit cards work and why they shouldn’t charge things they cannot afford. Another strategy is to give them a choice about how the family spends money on entertainment.

“Unfortunately, a lot of parents tell their kids ‘We can’t afford that’ without any explanation, but kids are very bright and often they can understand a lot more if you allow them to be part of the decision-making process,” Hartman said.

And no matter how much money your family makes, Hartman says one message should always be taught: “You’re not going to get everything you want and there are always going to be limited resources.”