How To Talk To Your Kids About Tariffs

The recent tariffs and trade tensions between Canada and the United States have left many families grappling with rising costs and financial uncertainty. While adults feel the strain, children can also feel affected—whether they realize it or not.

We all crave predictability, especially in the chaos of today's world. Children like to know what's happening, and they notice if things are out of sorts. Not knowing what to expect is one of the most uncomfortable and distressing feelings kids and adults can experience.

As a parent, you may wonder how to support your children during this challenging time. How can you talk to them about economic issues without causing undue stress? Should you even bring it up? How do you help them feel secure when you feel overwhelmed and uncertain? The key is to focus on what you think, say, and do as a parent to guide your child through uncertain times.

THINK: What you believe about the situation matters

Before talking to your child, check in with your feelings and concerns about the current economic situation. You might feel worried, overwhelmed, uncertain, angry or sad. Try to notice what emotions are coming up and name them. Your mindset will influence how you react to this situation, which impacts how your child understands and responds.

• Remember that it’s normal to have a lot of emotions about a difficult situation.
• Remind yourself that economic cycles fluctuate, and uncertainty is temporary.
• Recognize that children look to you for emotional cues. If you appear calm and confident, they will feel more secure.
• Focus on resilience and problem-solving rather than fear and scarcity.

SAY: What you say to your child about uncertainty matters

1. Validate their feelings

If your child notices you’re stressed or hears about tariffs at school or on the news, acknowledge their concerns. You might say, “You’re right, there’s been a lot of talk about money and prices going up. It’s okay to feel confused or worried. A lot of people are feeling concerned.” This helps them feel heard and understood.

2. Explain in simple terms

For younger children: “Sometimes, when countries don’t agree on things, they put extra costs on items from other places. That can make things more expensive for families.”

For older children and teens: “Tariffs are like taxes on goods from other countries. Some people think they protect businesses, but others say they make things more expensive for everyone.” Keeping explanations neutral allows kids to form their own opinions without unnecessary fear.

3. Reassure and empower

Children feel safe knowing the adults in their lives have things under control. Even if you’re feeling worried about economic instability, you can still provide reassurance. Try saying:

• “Even though prices are changing, we’re going to be okay. We’ll make smart choices about what we buy and focus on what we can control.”
• “Our family knows how to adapt, and we’ll get through this together.”

For older kids, this might be an opportunity to learn about budgeting and financial planning. This practice helps older children feel more in control and involved.

4. Encourage questions and critical thinking

If your child wants to know more, guide them toward reliable sources of information and help them think critically about what they hear. Ask open-ended questions like:

• “What have you heard about this?”
• “Why do you think countries put tariffs on goods?”
• “How do you think families can adjust when things become more expensive?”

These kinds of conversations help normalize a tough situation and help children better understand the world around them.

DO: What you do in a challenging situation matters

1. Create a sense of stability

Children thrive on routine. Maintaining a consistent daily schedule can provide comfort even when external circumstances are unpredictable. Notice your routines and stick to them. Dinner time, bedtime and family time together all provide stability and comfort.

2. Teach financial literacy

This can be a great time to introduce kids to financial concepts like saving, spending wisely, and distinguishing between needs and wants. Younger children can learn through fun activities like playing store, while older kids may benefit from an allowance and budgeting practice.

3. Model healthy coping strategies

Children take cues from their parents. If they see you managing stress in healthy ways—whether through exercise, talking things out, or taking mindful breaks—they’re more likely to adopt similar coping mechanisms. You don’t have to pretend you’re not stressed. You can explicitly model how to manage stress and worry for kids. Feeling stressed is a part of life, and learning how to manage a challenging time builds coping skills for children.

Helping kids build resilience

Economic uncertainty can be challenging and can also present an opportunity to teach children life lessons about resilience, adaptability, and financial literacy.

By focusing on what you THINK, SAY, and DO, you can help your child navigate uncertainty with confidence. You don’t need to have all the answers—you just need to provide a safe space for questions, reassurance, and problem-solving. With your guidance, they’ll learn that challenges can be faced and overcome together.