What is financial problems
A financial problem is a situation in which you are not able to meet your bills on time or afford necessary basic needs. There are various types of financial problems such as bankruptcy, late fee, debts and unemployment.
How does financial problems affect children?
The effects of being in a financial crisis for a kid is excessive fear, unwarranted anxiety, depression. Even though kids at this age don't have jobs, pay bills, or even maintain a certain debt. They don't fully understand money or what it takes to manage it. To them its the fear of losing the family home or them seeing their parents late at night struggling with the bills. This is a stress that is revealed as moody behavior, increase i anger, and poor academic performance.
Why does financial problems affect kids
Since they have don't know much about money or even know what it takes to manage it. Their viewpoint on the problem is blown out of proportion because of the fear of being homeless even though the situation is not really escalated that high. This whole situation of not having money sends them into a state of fear where they can't really react normally and come up with solutions but rather start to come up with crazy endings or story of what happens next.