Bailout, foreclosure, moral hazard, derivatives, FDIC limits, subprime, depression, main street vs. wall street, credit debacle. Are children you know becoming familiar with financial words and phrases you never thought a young mind would encounter?
Kids don’t need to be shielded from today’s financial news, but it’s not a good idea to fill them full of fear. While many news outlets are trying to create a sense of urgency for American savers as they stir the cauldron of financial queasiness, keep in mind their goal is to sell publications. The economic markets are very efficient, and cycles do come into play.
How long the down cycles last is anyone’s guess, but an up cycle will eventually arrive too. Keep in mind that panic can cloud your long-range vision.
Yes, keep up on the news, but think before you leap.