Life's Lessons in today's nutty world!

With the present day economic situation, many people are in panic mode. All the doom and gloom is making even the most optimistic people a bit fearful. With this state of mind, decisions are being made, that may or may not be best.

While we are reacting to the day’s events, our kids are watching us closely. They are observing our behavior, our decisions and our attitudes. Although this normally happens everyday, it is especially important to be aware of this during these challenging times.

Some kids are asking their parents “are we going to lose our house”, “do we have enough money”, “why can’t we buy this, we never had a problem before”. The very core of their stability, their security and their safety is being rattled. For some, especially younger kids, this can be very traumatic.

So, what are we, as parents, to do? In my opinion, we have two choices: One, we bring our kids into the fear, panic and uncertainty mode that seems to be running amuck, or two, we capture an amazing opportunity to empower our kids with money and life skills. I choose the latter.

First, change your attitude. Take control of your fear and panic and step back for a moment. Ask yourself, “what can I do today to change this predicament?” “How can my lifestyle choices be adjusted so that I now prioritize my expenditures?” “What type of resources, skills and talents do I posses that would help me start my own company?” Be creative, look for opportunities (they are everywhere) and know that ‘this too shall pass’.

Whether you realize it or not, this is a perfect opportunity to teach your kids, whatever their age, invaluable life lessons. They should start to evaluate the way they spend their money, especially teens. How much of their money is being spent on fast food or coffee houses? Do they really need that $100 pair of jeans or would a pair at half the price be just as nice?

What percentage of their money is put into a savings account? This is a great opportunity to show them how that savings account may someday get them out of an unforeseen predicament.

Do they have credit cards? If so, show them how credit card abuse has created this environment of debt gone wild. Teach them the correct way to use a credit card and how misuse will cost them dearly.

I encourage you to involve your kids, age appropriately, in the present day circumstances. Let them realize they have control over their destiny by the choices and lifestyle habits they create for themselves. Once they realize they have this power, much of that fear will disappear. My hope is that you realize the same.