The economy is crazy these days. Many of us are cutting back this year. The holidays just make it all the more obvious.

Cindy Edwards, a local mom and professor of psychology at Meredith College, offers some tips and advice on how to talk with your kids about money. She said what's most important is that kids feel a sense of security and predictability in their lives.

Here are some tips from Edwards:

1. Talk with kids about what will not change. For example, if the family has to leave their home due to a foreclosure, let younger children know that their favorite stuffed animals will be able to come along, too. Maintain routines and rituals like bedtime stories, as much as possible.

2. Reassure your kids. The natural tendency of children to be egocentric (or self focused) often leads them to surprising conclusions about the causes of events, including blaming themselves for family problems. It’s important to reassure your kids that grownups are working on solutions to the problems.

3. Be honest with them. Don't let them be a sounding board. Parents have a responsibility to talk with children about money, the same way we teach them how to handle hot pots and pans, how to brush their teeth, or to look both ways when crossing the street.

4. Watch for signs of stress. For younger kids, that might be acting out, sleep disturbances or regression to younger behaviors like bed wetting in a child who has long been out of diapers. For older kids and teens, signs of stress might include defiant behaviors or, conversely, being "too good," dropping grades, changes in eating habits or moodiness.

5. Remember children are resilient and can handle bad news as long as they know their basic needs are met. Teach your kids lessons about finances and the economy.

One of the best learning environments is the grocery store. Basic price comparisons of brands or "economy" sizes can provide lessons about economics, as well as math. Rather than simply telling kids "we can't afford that" when they reach for the high dollar breakfast cereal or candy bar, help them to do the price comparison of what else needs to be purchased with that money. Help them to draw their own conclusions and you will soon find an ally in your efforts to save money. Provide older children and teens with a budget for a weekend dinner, and let them figure out how to feed the family at a price you can afford. They will learn a valuable lesson about how much food costs, appreciate the responsibility, and perhaps gain some respect for the challenges of keeping the family budget balanced.

Every Tuesday, local experts offer advice on your kid's health, your health and related issues. If you have a question for an expert, e-mail me.

Check out our other daily themes at TriangleMom2Mom:

MONDAY: Meet!
TUESDAY: Ask!
WEDNESDAY: Eat!
THURSDAY: Play!
FRIDAY: Out!
WEEKEND: Relax!