In the last recession of the early 90's, my husband and I were looking for ways to cut back. Both of us are business owners and in lean times for the business we know how to get lean on the home front.
We held a family meeting and asked our son's (ages 7 and 10) for their ideas. We decided as a family to cut back the Friday night take-out pizza.
The next day Jon came to me. He said, "Mom, Brian and I have decided to stop taking allowance until things pick up." Wow, it still brings tears to my eyes. It was only $5/week per son...but it was all they had.
Some parents would say that is not necessary and thank them. I think that is a mistake. By offering all they could, they took part in helping the family in a tough time. They learned it is okay and possible to delay gratification for a long-term financial goal.
This recession has been easier on them than on some of their peers because they have been through one before and remember it.
Linda Keith, CPA
Helping lenders say yes to good loans. Helping parents and teachers raise financially literate kids.
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