Yesterday, I had the delightful opportunity to chat with a Providence business teacher who I have come to respect and admire. We spoke about the fate of NIE, the economy in general and the impact it has had on her students, many of whom seem surprisingly oblivious despite her insistence that they read the newspaper daily.

"They just don't get it," she said.

One of the reasons, we decided, is because we have done such a wonderful job of sheltering our children and providing for their every needs. We've said "yes" far more often than "no." So, beyond showing them the headlines, what can we or should we be doing as parents and educators?

Be honest with your children about what you can afford, says Michelle Singletary, a personal finance columnist for The Washington Post. "Do I have to remind you of the current economic climate, where none of us can be 100 percent sure that our jobs are secure? Well, I'm going to remind you anyway. The unemployment rate has hit a 14-year high of 6.5 percent. The number of people applying for state unemployment benefits is at recessionary levels.

(Rhode Island had an unemployment rate in October of 9.3 percent, the highest level since February 1983.)

"As of the opening bell on the day before Thanksgiving, the Dow Jones Industrial Average was down 36 percent for the year. Some of you are even afraid to look at your retirement portfolio. Others who have dared to look feel like falling back with their hands over their hearts, the way Redd Foxx used to do when he played Fred Sanford in the '70s sitcom Sanford and Son. However, you're not faking a heart attack for laughs. It's real. Your heart really hurts. . .

"Now that you've been reminded, man up (or woman up) and have the talk. Don't punk out because 'tis the season or you hate to disappoint your kids. Use this trying time to teach your children by example to recognize their limitations and that there is no shame in having financial limitations. By discussing with them that money is tight, you are admitting that at times you can't do or get what you want. You are teaching them you can't spend what you don't have. "

Pamela Yip, personal finance writer for The Dallas Morning News, offers similar advice:

"What approach you take with your kids about the financial crisis' impact on your family depends on their age. Don't bog your young kids down with the minutiae. They won't understand it, nor do they need to. . . Use the economy's troubles to teach kids the importance of savings. Open up a savings account for your child. Although interest rates are low, it can still show them how money grows over time if they keep saving.

Yip quotes Janet Bodnar, editor of Kiplinger's Personal Finance magazine, who writes a column on kids and money: "If you've lost your job because your employer downsized, remember this: What children -- especially young children -- need most is reassurance. If you're losing your job, tell them, m not going to be working at the same place that I've been working at, but I will be looking for another job,. They want to know that they will have a roof over their head, that there will be food on the table."

As difficult as the economic turmoil may be, it has provides teachers and parents with a unique opportunity to teach their children valuable financial lessons.

Start by asking them what they have already heard and what what words they don't understand. A good place to start is How Stuff Work's which offers a pretty basic explanation of recession.

It might also be helpful to look at financial patterns in our history, and to see that -- although it took time and effort -- the economy did regain its footing and people pulled through.

YouTube offers some nice first-person accounts of The Great Depression and primary-source footage. I particularly liked hearing voices of the survivors.

What a wonderful opportunity to present an oral history project where students can interview their grandparents and elderly neighbors!

Don't miss the teachable moments.

 Tags  economy recession

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