Foreclosures Can be Instructive to Children

May 12th, 2009 | Tags: Foreclosure

The foreclosure related crisis leading to recession can be instructive to children. In school Judith Edmond talks to her pupils regarding personal finance but it is something more than just another subject. The recession had scarred Judith badly – nearly left her without a shelter. In trying to save her property she moved with her baby son with her aunt so that her mother could earn extra money renting out the room they had hitherto lived in.

Judith is a high school teacher. She complained about the rising costs of everything – food, nappies, clothes etc. She is lucky to have a job but the hours do not permit her time to snatch few hours of extra earning. Judith has come face to face with the reality of the foreclosure crisis. There are thousands like her in the same situation.

Rosanna Jacobsen of Florida JumpStart Coalition is engaged in running personal finance studies in schools. She said, “It’s obviously on their minds, from what they’re saying and the questions they’re asking. What happens when you write a bad check? What does bankruptcy mean? Can you get in trouble and go to jail for that? The questions often have a personal tone, like they’re hearing these things or actually living them at home.”

Even very young kids react and sense when they hear and see the adults grappling with financial problems. It becomes obvious when the teacher talks about money to a class full of second graders. Jacobsen said, “One little girl, probably 7 or 8 years old, told me, When we don’t have enough money, my momma will just charge it.But when the bill comes in, I don’t understand how it gets paid or who’s going to pay it.’”

This recession has already broken a record – it being the longest since 1921. Teens that had been used to affluence have suddenly got a shock. The parents sans cash can no longer afford costly clothes, cars and the latest gadgets and other items that cost big money.

Psychologist Laura Grashow of Miami focuses her work on children and their families. She said, “I’ve seen some pretty bad reactions. There’s a lot of resentment, with the child blaming the parents, not the economy, for their financial problems. Sometimes, it’s just adolescent rebellion. But sometimes, it’s a problem in the family dynamics. Put together, it can be a strong cocktail that leads to a lot of acting out.”