But to small children, you may still appear to be a combination of Santa Claus and a magic Genie who can make money appear out of thin air. Here are some ideas on explaining money issues to young children. Checks are not the same as money. This is a very tricky situation to explain to a very young child with little experience with the adult world. If your child becomes upset because you won't write a 'magic check' when cash is tight, explain to them that Mommy would get in a lot of trouble if she wrote something that wasn't true.
Children understand crime and punishment very well, so compare it to telling a lie or cheating.
They may not understand what a bounced check or an overdraft is, but they will probably understand the problems with doing something that is untrue. Another way to explain checks to a child is to take them with you on your next trip to the bank. Show them the check your boss gives you for going to work, then give it to the cashier. Explain to your child that it may look like a lot of money right now, but you have to pay for things with that money. If you receive some cash, show your child how much money something will cost, such as an electric bill or groceries.