How to Tell Your Kids About the Recession

Parents’ natural instincts are always to protect their children. Keeping them from danger is an innate part of our human nature. But we’re in sales and the realities of selling in a recession are hitting home—less commission, longer hours at work, and frayed nerves. If you haven’t already, it’s time to tell your kids about the recession. Here’s some ideas that might help you with this awkward conversation.

 

Put it in Perspective. There’s an old saying that a recession is when your neighbor loses his job, a depression is when you lose yours. It’s just a matter of perspective. These are tough times and while there is tremendous economic uncertainty, we have always made our way through challenges in the past. And, somehow we’ll do it again.

 

Explain What’s Happening. Your kids probably wont’ understand that the recession’s cause is a $32 trillion negative wealth effect from declining home values, weakened capital markets, and consumer debt load. But they do understand there are natural cycles to life like the four seasons. While winter time happens every year, a single cycle of the economy can take decades. We’re in the midst of economic winter, at the bottom of a cycle.

 

Cash is King, Avoid Debt. As winter approaches animals in the wild stockpile food. During winter they conserve what food they have. Similarly, we need to make every effort to save and conserve money whenever we can. The biggest lesson of all is to live within our means and avoid debt.

 

It’s Temporary. There’s a classic Merle Haggard song where he sings, “If we make it through December, everything is going to be all right I know.” Well, it’s true. These times won’t last long and we just have to adjust our lifestyle for a short while, maybe through the rest of the year. But next year will definitely be better.

 

The Ultimate Truth. Your kids are living in extraordinary times. In their lifetimes they will see incredible developments in technology and advances in medical science we cannot imagine. They will enjoy incredible careers doing what they love to do.

 

Your kids’ true heroes aren’t the latest American Idol winner or the Super Bowl MVP. It’s you. Your sacrifice and hard work is responsible for everything they have and everything they’ll ever do. And you did this for the right reason, because you love them.  Now you just have to make it through December.

Comments

[Peter Watts]

Thanks for a great, and very timely article. You raise an important point that the realities of the recession need to be shared with the younger members of our families in a reassuring way that they can understand.

I especially agree with you on point one..... keeping things in perspective. If we keep active, then we'll come through this just fine!

All best regards
Peter

http://speak2all.wordpress.com/