Twitter   RSS   Email  

 How the Global Economy is Dependent on Christianity

 Why America May Never Recover From the Recession

 Save Money Homeschooling

Don’t Let the Recession Teach you about Money

By: Steve Johnson

5/19/2008 - 36 Comments

The coming recession is going to teach a lot of people about money – the hard way.

The 'social status syndrome', along with easy credit has created a huge mess of our society.  Most people are very worried about what other people think of them.  This worry is so powerful, that people have been driving further and further into debt just to maintain their social status with their friends and family.  The saving rate in America is now -0.5%.

In China, the average saving rate in 50%.  What would your friends and family think of you if you moving into a house half the size that you currently live in and began living on half your income?  Some people are very afraid to do that, but in China living beyond your means is looked down on.  So, the social culture of China is easier to live within your means than in America.

How to live like if you lived in China

Continuing to live beyond your means into the coming recession will likely cause a financial hardship.  Many people are already facing layoffs, foreclosures and bankruptcies.  Now is the time to learn about money so that you can get your family finances in order and avoid a financial hardship.  There is no doubt that the coming recession is going to reduce the average household income.  Leaving us with only two choices; either we reduce our spending on our own terms or our lenders create a financial hardship to reduce our spending on their terms. 

We need to change the social status of our culture so that we can reduce our lifestyle and remain accepted among family and friends.  The recession is going to force a change in our social status.  Just like it already has begun by reducing the value of the housing market, making it less popular to own a large home.  Our culture has begun to look down on or feel sorry for those that still own large homes, because we know they are probably financially hurting and wishing they could sell and move into a smaller home.

Teaching kids about money

I'm trying to teach my kids to save their money, but it would be a lot easier if we lived in China. Our culture is hard to teach kids the truth about money, because all day long they are taught by friends and marketing ads that money is for one thing - spending.  Kids have so many toys, games and gizmos today, that it’s very hard for me to constantly say, ‘no you cannot have that’.

Kids also face social status syndrome as their peers tease them for not having cool clothes or the latest gadget.

The coming recession will at least be good for one thing, helping me teach my kids about money. There are already many examples of friends and neighbors that have run out of money, which has provided real life examples for me to teach my kids what not to do - and why we save money in the bank. 

Reference Article: Arm your Children with Financial Knowledge

Copyright © 2022 All rights reserved.

The New Master Your Money

This book provides a step-by-step plan to financial freedom presented in an easy-to-understand format. Do you know if you have enough? Do you know how much is enough? If you can't answer these questions, The New Master Your Money is for you. Ron Blue extracts principles from God's Word and applies them to your financial portfolio. Ron's professional experience in financial planning will be an asset to you and to your family for generations to come.

Raising Money Smart Kids

With each generation the children seem to have more money available to them than their parents. With this should come responsibility and learning how to spend or save wisely. The problem is that most just learn to spend as soon as they get it, get it by begging parents or an allowance with no responsibilities involved or similar. Enter Janet Bodnar, deputy-editor of Kiplinger's Personal Finance, mother of three, and writer of the Money Smart Kids column in Kiplinger Magazine. This book is provides a framework within which parents can use good common sense to handle any situation.

The Status Syndrome

With 30 years of research and a catchy name for his theory, epidemiologist Marmot gives a wake-up call to those of us in the wealthy industrialized world who think our social status has no impact on our health: whether you look at wealth, education, upbringing or job, health steadily worsens as one descends the social ladder, even within the upper and middle classes. Marmot shows that life expectancy declines gradually from the upper crust to the impoverished. The odds are that your boss will live longer than you and that Donald Trump will outlive us all.

How to Save Money Every Day

Ellie Kay has done it again! In her new book "How to Save Money Every Day," Ellie will have you laughing (literally!) all the way to the bank with the money you'll save following her tips. What makes Ellie's advice so extraordinary is that in many ways it's so...well...ordinary! This is practical stuff anyone can put into practice every day in every area of life.