We are in a terrible economic bind. Each day the news seems more and more grim, and the experts don’t seem to be able to predict when it will bottom out. Meanwhile, families are just holding on tight, waiting to see what happens and trying to make the best of bad times.
Parenting Teens Network reached out to our Parent Board and Teen Board and asked them how they're coping with the economic crisis. Then we asked our expert, James Marchesi, Principal of Summit Asset Management, Inc. in Florham Park, New Jersey, to comment.
What the Teens Say …
“Our family used to not have to worry about how much money we spent because of how well our stocks were doing. Now since the economy has fallen out we're all being more conscious about how much we spend. Although my parents raised my allowance, now I have to pay for everything I do. They're even helping me to start my own savings account and put some of my money into stocks. I'm learning to budget my money responsibly, and now I have a great example to follow as my parents are having to do the same. So now when I move out I'll know how to spend my money wisely.”
Nick B., 14
“Sure, we've cut down on certain things, but it doesn't feel like a huge life-altering change to me. I'm positive that's because of my family's economic standing. If we were having harder times, then this might effect us more. But yeah, simple things like going out to lunch are things we just don't do anymore.
Rachel H., age 18
"The downturn has affected me because I am having to cut back on purchasing items I am used to having. Since I have started to have to pay for some of my stuff, sometimes I have to say,’I can't buy that, it's a waste of money.’"
Tommy B, 13
Penny Hastings, CA 11/21/08
For parents who have seen their savings for their kids 'college education drop to half (or even less) than had six months ago, it's a panicky time. On top of that, college financial aid and college loans have decreased. Kids with special talents, such as athletics, should look at the sports scholarship opportunities and take advantage of them by marketing themselves to college coaches. There is $1.2 billion awarded to skilled student-athletes every year...savvy student-athletes will try to get part of that to help them through college. Read the book, How To Win A Sports Scholarship, 3rd edition, for a step-by-step approach to drawing the attention of college coaches and maximizing your chances of being offered a sports scholarship.
Penny Hastings
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