6 Ways in which the Recession has helped Families become stronger

By Sharon Fonge, MBA Finance and Accounting (Twitter: @anchenge)
Edited by Lema Abeng-Nsah


Photo: Lyn Baxter

When we think about the recession, several things come to mind … most of them unpleasant at first. We think of friends who have lost their jobs, families who lost their homes through foreclosure, we remember horror stories of plummeting stocks and heart wrenching accounts of retirement savings gone down the drain overnight.

Looking back to 2008 when it all began, and asking “how could this have happened?” We are now gaining an understanding as to why and every year that has gone by has painted a clearer picture. Banks had been giving out bad loans (personal and business), mortgages and credit cards to unqualified consumers, hence prompting many to dig even deeper into debt. Another reason for the financial stress as most financial experts would tell us, has been the high cost of living and increasing prices of consumer goods such as gas, utilities and food.

However, let’s flip the coin. Has any good come out of this? The recession has also been a blessing to many families in more ways than one.

Live within your means. Many have been forced to reevaluate spending habits and to embrace a new reality. The tough economic climate has encouraged many families to learn how to live within their means.

Many have been forced to make a 360 degree turn in terms of finances hence prompting them to save more for the future. Many are finding more ways to eliminate debt instead of incurring additional debt.

Change in lifestyle. Although the economy is slowly recovering, the average American family has made major lifestyle changes for the better, not caring so much about pursuing material wealth, but are increasingly investing more time and energy into living more fulfilled lives.

Self-employment. Another blessing that has resulted from the recession is a rise in self-employment fueled by the realization that one can no longer rely on an unpredictable job market. The high unemployment rates have over the past few years birth forth many successful self-employed entrepreneurs in several sectors, notably childcare and network marketing. It is safe to say that the resulting “survival mode” from the recession succeeded in pushing many into building family fortunes. Many families have become closer during these tough times as well as they have learned to solve problems together, forging on with renewed faith.

The recession has imposed a decline in commercial completion hence creating greater opportunities for newly established entrepreneurship. These new opportunities if used wisely, will lead to robust economic growth beneficial to both individuals families and the government in general.

New possibilities. Because of the recession, qualified families that had previously been unable to own homes became eligible to purchase their first homes at low interest rates hence low mortgage payments.

Relationships. It is also interesting to note that divorce rates have fallen since the recession began, mainly because couples could not afford the cost of divorce during hard times or even the cost of running separate homes.

Quoting a May, 2011 survey by Nationalmarriageproject.org, Amy Lee of the Huffington Post writes, “the survey [The Survey of Marital Generosity]–culled from a nationally representative sample of 1,197 married Americans aged 18 to 45, –found that 29 percent of Americans believe the most recent recession deepened their commitment to marriage. What’s more, 38 percent of couples who had been considering divorce prior to the recession put those plans aside.” She goes on to say, “While 43 percent of Americans with no financial stressors reported their marriages to be “very happy,” only 27 percent of those with two to three stressors did the same, which suggests that the couples’ decision to stay together during the recession may have as much to do with the financial obstacle divorce presents as it does with learning to work together to preserve their unions.”

Better eating habits. Many families may have been able to improve their eating habits during this time by cooking at home instead of eating out. Many have resorted to eating healthy and exercising more to avoid increasing health care costs.

Quality time. Families are spending more time at home and finding ways to entertain themselves in simple family oriented ways such as like playing card, watching home movies/TV together, and even bonding over household chores. Many have traded annual vacations for fun trips around the city or state, hence spending more time together.

The recession has indeed been humbling. Suddenly, basics like having a roof over your head, cloths on your back and food in your stomach have now become a blessing. Communities have become compassionate as many continue to reach out to those in need, giving of their time and money.

The recession may have been tough on wallets but the lessons learned are priceless. Based on the above, one can conclude that these tough economic times have been a blessing for many families.

What has the recession been to you, a blessing or a curse?

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Also by Sharon

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