Money News from Around the Web

Found these interesting pieces this morning:

• Obama warns economy will get even worse -- "The economic recession will get significantly worse before it starts to improve, President-elect Barack Obama said, seeking in an interview broadcast Sunday to tamp down expectations as he prepares to assume the presidency in 44 days."

Like a typical American, I'll give him 72 hours to fix things before I start complaining. ;-)

• Cost of gas is approaching a five-year low -- "The average price of U.S. gasoline fell 22 cents a gallon during the past two weeks, bringing it to its lowest level in nearly five years. The average price of regular gasoline Friday was $1.75 a gallon."

It's $1.55 here now.

• Parents wrestle with discussing the economy -- "It's a tough economy out there, even for a kid. And many parents are wondering how to broach the subject. Should they shield their children from the hard times and spend like there's no tomorrow? Or is it better to share the reality that more families — often their own — simply can't have it all, even at Christmas? It can be a real dilemma."

We haven't talked to our kids about it that much since it's not really affecting our family at a level that impacts the kids (one of the benefits of spending less than you earn by a good margin -- you have a lot of cushion.) What are you doing on this issue?

• Frugal farmer leaves $2 million to tiny church -- "A tiny church in western Pennsylvania inherited more than $2 million from a farmer who lived in a mobile home."

No details on how much he earned, the size of the farm, etc., but a reasonable person could assume that this guy lived on way less than he could have.

Comments

[Shaun Connell]

Oddly enough, the economic crisis has benefited me financially because of the low gas prices. I have relatively high job security (read: underpaid, overworked and essential ;-p), and my biggest expense was driving my Expedition 45 miles to and from night classes.

I'm putting the extra money I have into an account, and will probably be able to pay my 4th year of schooling with it, meaning I might very well be able to take a "year off" from work to do so. I really hope that pans out.

As Richard Maybury (political, economic and historical commentator) said, during depressions and recessions, true wealth doesn't completely disappear... a lot of it just shifts a little.

[Kevin M]

Well, I was just proved wrong. My wife and I each said what we thought the low gas price would be when they started going down....I said no way it would go under $1.50. Well, I just drove by a $1.49 sign this morning. At least it's one time I'm OK with being wrong.

[Frank]

Shaun shows exactly why the lower gas prices frighten me. I was hoping people would start becoming more conscious of their energy usage (@$4/gal)... but the lower prices are now condoning their behavior :(

Its ok... when prices go back up they will learn.

[Shaun Connell]

Frank,

I am not sure if your comment was implying something wrong with my driving habits. If so, I am not interested in giving up a college education for the sake of --not-- impacting the environment. ;-)

I am actually one of the most frugal travelers I know, and don't go to town except for work and the occasional "hanging" time with friends, usually about once a month. I've been called a hermit, but I've been able to stay debt-free so far! :)

[Frank]

Shaun -

Continuing your education is great. That is definitely a plus (and congrats!)

I was referring to the fact that you drive around in a (most likely) unnecessary truck. And the implications are not just environmental.

And LOL @ the hermit comment... I have also been called that once or twice :p

Frank

[Penny Pinching Mom]

I just discovered your blog today and I really like it.