Kids should know the financial condition of his parents obviously but not from an adult’s perspective. The world of a kid is full of toys, dolls, and other play accessories. So in case of his demand for a toy you can say that “this toy is not as good as your other toys” or can show some different reasons that is of his level. Children are on an average intelligent; they will be able to realize the stand of their parents. When ever there is any family budgeting, always ask your kids to be involved and value his opinion. It is the responsibility of the parents to explain to the kids about money and it importance. Treat the child with affection and keep him in touch of reality