A country’s economy is a cycle. Sometimes it’s at the top and sometimes it’s below. Being at the lower part of the cycle is what you may have heard and read over and over again in televisions and newspapers as economic recession.
An economic recession is characterized by weakening business environment where there is low demand and in turn lower production. Most of the time, this results to a high inflation rate, which in lay man’s term is the lowering of the value of one’s money. This happens because of the rising costs of food and other retail items in the country. The same number of items that you can buy with for instance a hundred dollars will not be the same as number of items that you used that with years ago.
An economic recession, when it charges forth without any intervention can wreak havoc in a country’s overall economic health. It can lead to the loss of jobs, closure of businesses and rising costs of living. This is what the United States is currently feeling right now. 2008 has not been a good year for the country with large losses in its real estate industry as well as in other business sectors. Many lost their jobs and had their homes foreclosed because of non-payment of monthly fees. The country is also feeling the burden of skyrocketing oil prices as well as food and living costs.
With the United States as one of the main driving forces of global economy, their slowdown is felt all over the world. Countries which they have business interests have also suffered economic slow downs. The dollar which is being used in transactions all over the world is also weakening, affecting people who have either invested in the American currency or those who use it for their business. Often, in this scenario, those who are in the export business are affected by this as they are given dollars as payment for the products that they manufacture.
But don’t get worried. Although the economic recession may seem hard to deal with, it is not impossible to do. In fact when you really think about it, the whole family can actually do their part in saving during these economic recession times. Here are some ways:
1. Involve the whole family
You are not only one who should be saving during these hard times. Doing this should actually be something that the whole family should be doing. This way, you can be sure that everyone is pulling their weight. Saving as a family will also help keep the family closer in this hard times.
2. Explain the situation
You may not realize it but young children are actually smarter than they let on. When they are given a clear explanation, they will understand the situation and will even act on their own volition. You don’t have to constantly remind them or order them about. Explaining the situation will also allow your kids to feel that they are needed and that they can do something significant for the family. As young as they are, they also like to feel that they are needed.
3. Be a role model
Asking your children and other family members to save up when you are not is a bad way to encourage them. Make sure that you serve as a good role model to them by doing your part and making sure that they see you doing your part in this economic recession.