Core Insights - The phrase "Sorry, we can't afford it" can negatively impact children's financial beliefs and attitudes towards money [3][4] - Financial psychologists suggest that this language can lead to financial anxiety and unhealthy money behaviors in adulthood [3][6] Group 1: Impact on Children's Financial Beliefs - Children form core beliefs about money before the age of seven, and negative phrases can frame money as scarce and stressful [3] - Repeated exposure to restrictive language may contribute to feelings of financial anxiety and shame around spending later in life [3][6] Group 2: Alternative Approaches - Instead of saying "we can't afford it," parents are encouraged to explain their spending choices to foster a healthier understanding of money [4] - This approach helps children develop a values-based perspective on financial decisions, potentially preventing overspending in adulthood [4][5]

This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. To retire comfortably, 48% of U.S. workers say they’ll need at least $1 million in savings, up from 37% in 2024, and only 27% expect to actually reach that goal, according to a Dec. 15 report from Betterment at Work, a provider of 401(k) plans. Workers reported record-high anxiety around the gap between their retirement expectations and the reality of their savings, highlig ...

Financial Behavior & Psychology - Individuals typically relate to money in three ways: avoidance, micromanagement, or invitation [8][12] - A significant number of women experience financial anxiety even with substantial income increases [9] - Financial balance involves emotional awareness and financial literacy [15] - Managing money from experience rather than fear is crucial [13] Overcoming Financial Trauma - Addressing shame, guilt, fear, and financial trauma is essential for a healthy relationship with money [11][14] - Rewriting one's money story involves firing the "button-up old man" (negative financial influences) [7][18] Financial Planning & Education - Financial education should focus on feeling and experience, not just managing [16] - Integrating emotional awareness into financial planning leads to better preparedness during financial challenges [16]

Financial Anxiety - A millennial planned and saved diligently to purchase her first home, yet experiences intense financial anxiety [1] Homeownership - The report highlights the paradox of achieving a significant financial goal like homeownership while still facing financial anxiety [1]

Financial Anxiety - A millennial planned and saved diligently to purchase her first home [1] - Despite achieving this financial goal, the individual experiences intense financial anxiety [1] Homeownership - The report focuses on the emotional and psychological aspects of homeownership, specifically financial anxiety [1]