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The economic crisis has an effect on the lives of teens

Date published: 11/13/2008

BY BEN GREGSON

"Although I don't think this downturn [in the economy] is going to last a long time, a rough year is ahead of us; maybe even two."

This was what Robert Rycroft, professor of economics at the University of Mary Washington, thought of the general impact of the impending economic recession on teenagers.

Though students may not have to deal with subprime mortgages or 401(k) plans, tough economic times can have a major impact on teens--from finding summer jobs to saving for college. Here are some of the biggest concerns and what you can do about them:

THE JOB MARKET

"If you're graduating from high school and don't seek out higher education, it's going to be a lot harder to get a good job," said Rycroft. "And for students who do go to college, part-time and summer jobs will be a lot harder to even find."

It could be worse, though. During the Great Depression, the unemployment rate was 25 percent. In the recession of 1982, it was 10.7 percent. Right now, it is 6 percent.

While the present situation is obviously nowhere close to the Great Depression, there are some jobs you will want to avoid.

If the job has anything to do with gas stations, cars, department stores or office supplies, you should probably keep moving. These jobs have the highest wage and employment declines. They offer a low chance of getting hired and an even lower chance for advancement.

HANGING OUT AND DATES

Will you have enough to get a small popcorn when you go to the movies?

Here, there is some good news; however, it is caused by unfortunate circumstances. It is possible that, in months to come, the cost of, say, a cup of coffee may even be a little cheaper. This is due to the same process that has the cost of gasoline dropping: You don't have the money.

If people can't afford to buy luxuries, they won't. Therefore, businesses will be forced to lower the prices.

MONEY IN THE BANK

If your bank goes bankrupt, will you still have your money? In short, yes.

WHAT'S A RECESSION? A recession is defined as when a country's production decreases for six consecutive months. And in America, "the recession may have already begun," said Rycroft. "The last report shows that, over the last three months, less is being produced," he continued. "So, even if it's not a textbook recession, it's bad economic times. Don't get hung up on whether it fits the definition of a recession."

Date published: 11/13/2008