The credit crunch and recession

In a recession more people will be out of work because companies need to save money by cutting jobs so they don’t have as many people to pay wages to.  This also means that there are fewer jobs for people to do.  People have less money to spend, so they don’t buy as many things, which makes it harder for shops and businesses to make money. Then the circle starts again, with shops and businesses cutting jobs to save on their wages bill.

You might already be affected by the credit crunch; maybe you have heard your parents, carers or teachers talking about it.   You could be affected in the following ways:

• Your parents or carers might be worried about losing their jobs
• You might have less pocket money than before
• Your family might have to cut back on the amount of shopping they do and buy cheaper things
• Your family or your friends’ families might have to find ways to spend less money 
• Your school or youth club might also be looking for ways to spend less money
• The price of things you want to buy has gone up
• Local shops might close down.

If you have been affected by the credit crunch, or are worried about money and what will happen, you can talk to ChildLine on 0800 1111.

It’s difficult to know when the recession will end. It could be a year or much longer.

There are ways to cope with the effects of the recession and help your family keep the bills down..  If you want something new, ask yourself, ‘Do I really need this or do I just want it?'   If you can go without some luxuries like the latest mobile phone or new clothes, although it’s hard, this will help your family not spend as much.

You could decide not to upgrade a mobile phone or computer, or to see if something can be repaired rather than replaced. You could recycle or swap toys and games that you no longer use. If you really want something, try saving up your pocket money or earn some money by selling your old clothes and games or offer to wash your neighbours’ cars. 

• Take a shower rather than a bath or don’t have the bath water too deep. This will reduce the cost of producing hot water..
• Turn off lights if you are the last person to leave a room
• Put a jumper on if you are cold rather than switching on or turning up the heating
• Switch the TV or games console off at the mains rather than leaving it on standby.

These might seem like small things, but they all add up to making a big difference.

If you want to talk about the credit crunch or are worried about your family, you can call ChildLine at any time on 0800 1111.  We are here for you no matter what your worry is.