By Douglas Goldstein, CFP®

An economic crisis is the ideal time to teach children about the value of money. Instead of complaining about your fiscal difficulties, think positively and brainstorm on what you can do to save money and/or redirect your spending.

Consider having a family money meeting to discuss issues such as kids’ allowances and how much will be spent on birthday gifts. Instead of making children feel deprived, such conversations help them feel as if they are part of the solution. Frequently, if presented with the facts in a calm manner, children will astonish their parents with a desire to help: they may volunteer to do the gardening instead of a gardener or make pizza instead of ordering take-out. One family I know gave their children a choice: they could either continue with their weekly household help, or the children could take over the cleaning, and then with the money saved, the family could take a modest vacation. Which do you think they chose? While there was occasional grumbling, the family benefited from teamwork and the motivation of working toward a goal. Remember, when you speak with your family about finances, be careful to give the facts, and reassure them that you will take care of them.

Keep things in perspective
No matter how hard the current economic crisis may be affecting you, realize that others are in a worse position. (After all, you had NIS 15 to spend on today’s paper!) Even if things look bleak, count your blessings. While money is a necessity, remember the really important things: your health and your family. If you need some perspective, volunteer in a soup kitchen or other charitable organization.

If you’re depressed about your finances, take charge of the situation. Write down your expenses, create a budget, and establish a financial plan. Taking concrete steps can show you how small savings add up to put you in a better place.

While fixing the global economy is beyond your control, it’s within your power to focus on what resources you have to best meet your family’s needs.

Douglas Goldstein, CFP®, is the director of Profile Investment Services. He is a licensed financial professional both in the U.S. and Israel. He offers securities through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA, NFA. Accounts carried by National Financial Services LLC. Member NYSE/SIPC, a Fidelity Investments company. His book is available in bookstores, on the web, or can be ordered at: www.profile-financial.com (02) 624-2788 or (03) 524-0942.