Stressing About the Recession?

Even if you didn’t want to know what’s going on with the economy, it’s kind of hard to avoid it. Talk of the U.S. financial crisis is the hot topic on TV, radio, in newspapers, and just about anywhere else info is dispensed.

And apparently, you’re tuning in, according to a recent article in USA Today (A Generation Adjusts as Teens Confront a Harsh Economy). “Except for boy-girl relationships, the economy is the number one topic with kids right now,” says Jim Taylor, Vice Chairman of The Harrison Group.

So much of the news has been about how the economy is affecting adults (the job market, pensions, insurance, mortgages), but what about teenagers? Because even with part time jobs, many rely heavily on their parents to cover the basics and give them a decent allowance to cover the cost of things like college tuition, prom, vacations, hang out time with friends, music, dating, clothes, a car, and video games.

So how can you keep a healthy attitude about money and not let the economy stress you out? Here are my 6 Recession Survival Tips for Teens:

1. Don’t obsess over the news – turn off the radio or TV when the anchors start talking about the stock market this and the recession that. You can’t change what’s going on, so there’s no point in dwelling on it.
2. Take my Spend-Free Week Challenge – go for one week without spending a penny (pack your lunches, make your coffee at home, get your movies and books from the library, not the store, walk or bike to places, and so on.
3. Don’t buy new – how many of us have way more than we could possible ever need? So find ways to reuse, recycle, and swap things you’d normally buy (ie: skip the sale at The Gap and have a clothes swap with your friends instead).
4. Get creative – adversity can be the spark for innovation. Brainstorm creative ways to earn a little extra cash by thinking outside the box – hold a yard sale, tutor, cash in recyclables at the grocery store, participate in focus groups, etc. For more ideas, visit Kids Making Money.
5. Start taking control of your money – track your incoming cash and outgoing expenses by keeping a simple spreadsheet for one week. You may be surprised to discover what you’re actually spending your money on! Once you get a good sense of where your finances stand, you can start making smart choices about how much you want to earn, spend, and save.
6. Hang in there – history shows us that economic downturns are part of the financial cycle. So, know that this too shall pass!

Do you have any great money-saving tips or advice for how you’re weathering the recession? If you’ve got ’em, share ’em!

For more ideas on making and saving money, check out . And for more ideas on how to not get stressed out about the economy, check out my book !