What Kids Learned About Money During the Recession

(MoneyWatch)  Want to have some fun tonight? When (or maybe I should say if) you see your teens at dinner ask them what they learned about money during the recession. If they say they nothing, as mine did, push a bit because 95% of college students say their families have been affected by the downturn and 93% say their own money situation has deteriorated, according to the National Endowment for Financial Education. That's just about every college student in America.

When I pushed my 20-year-old daughter, Lexie, it didn't take her long to mention how staff cutbacks at school left a shortage of slots in some key courses for her major. She hadn't tied that to the recession before. Now she understands that she isn't an island; other people's problems can ripple into her life.

In this case, she'll have to wait a year to get the course she needs. That's an inconvenience; not a big deal. But I'm hoping the connection between other people's problems and her life sticks so that one day when her financial adviser buys too big of a yacht she'll make sure the bum doesn't churn her account to pay for it, or so that she'll understand that loading her 401(k) with employer stock ties her financial future too closely to the ability of a single CEO.

Lexie learned something else too. The summer camp where she has worked for three years is fairly expensive and -- because of the recession -- had fewer kids enrolled this year. That translated into fewer tips and less income for her for the same amount of work. But at least she had a summer job; many of her friends couldn't find one. I asked her how she thinks she managed that. "Well," she said, "I guess I did a pretty good job last year."

Bingo. Her experience and work ethic paid off, and now she understands that payoff in a concrete way. That's wisdom that will serve her over a lifetime.

What have your teens learned? Find out. Help them voice what they are feeling and turn it into a lifetime money lesson. If your family suffered a financial setback, don't hide it. Your kids will be fine if you explain what steps you've taken to fix the problems -- and they will remember the experience forever.

If things are good, ask if any of their friends' families have struggled and what steps their parents took. Talk about how your debt, savings and career strategies helped you (or hurt you) during the turmoil. Surveys show that young adults are struggling with credit and thinking about budgeting and saving like never before, and that families have never been more open to talking about finances. Why not get started tonight at dinner? Assuming the kids show.

If you have a question about kids and money, I'll get the answer. Email me at [e-mail].

Photo courtesy Flickr user theritters