Five ways the bad economy can be good for your kids

May 20, 2:37 PMDC Military Families ExaminerKaren Klasi

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Our kids are spoiled.  According to That Money Show on pbs.org, ours are the wealthiest generation of teens in American history.  Despite the state of our economy, they will spend a projected 155 billion dollars in 2009.  Thanks to after-school jobs and overly-generous allowances, they are accustomed to getting what they want, and to getting it NOW.

As adults, we have learned, or are in the painful process of learning, that the 'I want it now' mentality is not healthy one.

The bad economy can, in fact, be good for your kids.  Bad times provide the perfect opportunity for raising more patient, content, thriftier, wiser and generous kids.

Kids can learn the value of delayed gratification

Now is the perfect time to put off major purchases.  Kids jonesing for a new game system?  Have them kick allowance money into a collective pot just for that purpose.  Even better, show them the utility bill, give them the magic number, and tell them when the bill comes in below the magic number, every dollar saved is theirs to use for the next big purchase, family vacation, etc.  Then, sit back and watch as lights are turned off, doors are closed, and showers are used for getting clean instead of extending the snooze button.

Kids can learn that they do not have to have 'things' to make them happy

Dedicate yourself to family time.  Have the kids design family nights on a budget.  Put on your Fun Mom or Fun Dad game face, and show them that the time of their lives can be had for the price of a Happy Meal.  Pack picnics instead of eating out.  Spend time outdoors.  Introduce hobbies that require only their hands and feet, a ball, a bat or a glove.

Kids can learn that second hand is often better than brand new

Thrift stores are hot.  Find the good ones in your area, hand your kids some cash, and set them free.  They may be disdainful at first, but with any luck one of two things will happen: one, they'll find a great bargain, or two, they'll see someone from school.  If they're still struggling, take them to the mall and hand them the same amount of money.  Your small geniuses will discover in no time that their buck goes further when they buy used. 

Kids can learn to set long-term financial goals

Everyone knows it's the right time to buy stock.  It can only go up, right?  This makes now the perfect time to teach your kids about investing, about the stock market, and about setting long-term financial goals.  MoneyInstructor.com has tutorials that start with the most basic of lessons on saving and investing, so you can learn alongside your child.

Kids can learn that it is better to give than to receive

One of the things that makes our nation great is our willingness to give to those in need.  Now is the time to pass this value on to our children.  More than ever, the small amount your children give can make a huge difference in the lives of those less fortunate.  Choose a charity to support as a family, and even if your kids only have pocket change to give, encourage their efforts.  Tell them that they are part of a long, proud line of Americans who help the less fortunate.  We will all be better because of their giving.

It may not be easy, but the downturn in our economy presents us with an opportunity, and a choice.  We can undo the damage of a selfish generation (ours, not theirs) by raising up the next to be fiscally responsible, charitable and self-satisfied.