How to Protect Your Kids From the Recession

CLEARWATER, FL--(Marketwire - May 8, 2009) - Whether you've been hit hard by the recession or not, kids and families may be reeling from the effects of the troubled times without a frame of reference for how tough it is out there.

Arun Abey, former Wall Street figure and author of the book "How Much is Enough?" from Greenleaf Press Book Group (www.howmuchisenough.net), believes that parents don't just need to teach their kids about finances, but also about the balance between money and quality of life.

Abey offers some basic tips for families who want to get themselves -- and their kids -- smart now about financial matters.

--  Don't Let Money Be Invisible -- Today, money comes out of ATMs and is
    spent via debit cards and credit cards -- invisible to kids as to where it
    comes from and where it goes. Kids lack a frame of reference.
    
--  Give Kids Responsibility for Spending -- One of the ways to get kids
    smart fast is by placing them in charge of their discretionary spending. If
    they receive an allowance, then parents should require their kids to record
    how it's spent.
    
--  Teach the Power of Investment -- Parents should help their kids set up
    a savings account, but then explain the value of investment. For example, a
    simple investment of $100 in a basic savings account can result in a
    balance of $12,000 after 20 years.
    
--  For Love or Money? -- Most families try to direct their children
    toward high-earning careers, such as medicine, high finance or business
    management. However, there is an alternative method that directs children
    toward career paths that stress their passions. This path stresses lasting
    fulfillment over financial rewards, even though, in many cases, people wind
    up with both by following this path.
    

"I can't think of a more important moment in our country's history to teach these lessons," Abey said. "The current financial crisis, caused equally by reckless bankers as well as uninformed consumers, underscores the need for this kind of education and understanding."

About Arun Abey

Arun Abey is Executive Chairman of ipac and Head of Strategy for AXA in the Asia Pacific; a part of the global AXA group that manages over $US1.5 trillion of clients money and is ranked as 15th largest company in the world by Fortune Magazine.

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