Five Effects of the Recession on Families and How to Cope

Proshare

Thursday, September 15, 2016 7.00AM / Taiwo Ologbon-Ori, TheAnalyst

During the recession, economic hardship knows no limits and boundaries, it affects livelihood of everybody in one-way or the other- and this naturally gives impetus to survival instincts as people work harder and more effective to tackle the new economic realities.

In a recession, families with little or no buffers to resist the effect of recession are most likely to be hit severely - but there are ways the unfortunate condition could be managed. In additions to what our previous articles on recession had shown, we write on how to improve situation while awaiting economic interventions from FG in near future.

Below are few major ways recession have effects on families and how to tackle these effects;

Job loss
Job loss or unemployment is usually high during recession as employers deploy rightsizing approach to cut overhead cost- Job loss destabilises families, which may trigger other unintended consequences like depression and alcoholism that may have serious effect on wellbeing.

Tips and strategies:
Taking a lower-paying job would reduce short term pressure in meeting basic obligations- this is a short term measure to stay afloat while looking for high-paying jobs. You may consider borrowing from friends and families but this may not bring a desired short-term relief as envisaged.

Long term strategies may include registering with professional job-finder organisations for effective job search. You may also consider change of carrer path or acquiring new sellable skills during the economic recession. do not write-off relocation as this may reposition you competitively.

Family Relationships
The effect of no source of income to meet basic family needs and obligation may cause frictions among families, which may lead to long lasting damaged family relationships. For instance, some families had already cancelled holidays abroad, sold houses and changed children’s schools to public schools as a way to cope with recession.

Tips and strategies:
We implore families to synchronise and work together to tackle the damaging effects of economic hardship- this may positively help family ties. Families may jointly visit local parks for picnic or have cheap dinner in a decent low-profile restaurant around.

Loss of Opportunities
Due to lack of availability of funds, small scale business owners may lose willingness to take advantage of emerging opportunities during recession, which may stunt business growth significantly.

Tips and Strategies:
Generating instant income to cater for family needs should be top priority this period- we would suggest that this is not the time to take big risk in starting new business, it is better to focus on research and search for investors and partners

Financing Education
To finance children education usually becomes tougher during the recession as schools would adjust tuition fees upwards due to high operating cost, parents with three or four children in high schools and universities are at the cross-roads at the moment.

Tips and Strategies:
Many families are already switching to cheaper schools around with same qualities and standards, which we consider a good step in direction- but this may not work for university students. For under-graduates, we suggest on-campus business or total switch to part-time schooling programme, which allows students to combine work and learning for self-financing purpose.

Considering Priority
Families are expected to know when draw thick line between needs and wants and prioritise accordingly- this is highly considered necessary during recession period as income had shrunk- the needs like shelter, health care, feeding clothing and schooling should be treated as priority over any other wants.

Tips and Strategies:
Families should come to terms and realities on time on how priorities expenses while adapting to new economic realities and coping with necessary adjustments.

While we would appreciate your feedbacks, we would also like to encourage you to share your experience with us on your survival moves, options taken and what more you would like to know. Kindly send in your personal stories, views and comments to market@proshareng.com and securities@proshareng.com

Keep a date with us as we bring more article(s) on dealing with #RecessionInNigeria

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