In my recent post about stockpiling cash, I discussed how the economic downturn was causing some people to go into survival mode. While going into survival mode during tough times seems natural, how survival mode is defined seems to vary from person to person.

The reaction I previously considered was the accumulation of necessities and a trend toward self-sustainability. Alternative reactions include denial, entitlement, or worse. Reuters described this reaction as survival panic. Changes in financial situation, or even the fear of change, may trigger an extreme reaction.

From theft to violence and depression to drug use, some people handle this change in a destructive way. Does the inability to maintain your lifestyle inspire you to keep up appearances by stealing what you can no longer afford? Does anger at a former employer inspire you to take out some form of revenge? Are you unable to cope and looking for a way to escape?

Experts expect many of these scenarios to play out. The Reuters article reminded us how ingrained consumption is in our culture. After years of easy credit and growing investments, it’s easy to see how these habits formed. Abruptly changing these habits out of necessity will surely cause some adverse reactions.

Thankfully, a positive reaction is also possible. In addition to the positive survival mode described previously, there has been a general trend towards reduced consumption and a rise in frugal behavior. Only time will tell whether these good habits will continue as economic prospects improve. As I implied in Why Spending Less Than You Earn Seems So Difficult, bad habits are more likely to stick around when the root cause of the habit is resolved. My hope is that the negative habits created during this downturn are outweighed by the good. Do your part and follow the advice offered in Changing Your Habits with the Slowing Economy.

How are you coping with the economic downturn? Share your ideas here!

A related topic that came to mind during my discussion of Five Questions to Ask Before Giving Your Child an Allowance was how to handle allowances during difficult financial times.

When household expenses are being cut down, allowances may have to face similar cuts. It may seem like cutting a presumably small expense like your child’s allowance is unnecessary, but it will help your children to understand that sacrifices are being made across the board. Keeping an allowance at the full amount after a job loss, financial setback, or unexpected large expense teaches your children that money is immune from economic factors. Recent history has shown just how untrue such a sentiment can be.

The New York Times explored this topic in their recent article As the Rich Get Poorer, Teenagers Feel the Crunch. More than just a profile of rich kids having to make do with less (and still more than most), the story actually showed the positive way that teenagers were reacting. For many, allowance cutbacks came as a wakeup call to the realities of the sagging economy and inspired a change in habits. Despite the desire to take on part-time jobs, some of these teenagers had trouble finding one. Adults who are happy to find any work they can get are increasingly filling the minimum wage jobs that were typically staffed by teenagers with few skills. Employment of 16-19 year-olds is now at a 61-year low.

Even if they can’t find part-time jobs to supplement their curtailed or eliminated allowances, the fact that teenagers have the awareness to seek work is an encouraging sign. Other changes in habits give similar hope. These are a sure indication that the lessons of allowance cutbacks during difficult times are largely being learned.

Have you cut back on your child’s allowance in line with other budgetary cuts?

Who should we turn to in this economic roller coaster? Our new president? Our friends? Our mother? Forget that. I'm turning to the best source of advice I had growing up: Mr. Feeny.

The Mr. Feeny Guide to Surviving a Recession

Forget what others think

You know “The Joneses”? Yeah, their home is in foreclosure because they had to keep up with themselves. It just got to be too much. Forget what people think about what you wear (Goodwill has great clothes), or what you drive (the bus can be more relaxing than driving), or where you live (have a roof? You're wealthy).

“Unfortunately we live in a society where they tell us we have to look a certain way, so we're all under pressure to live up to unrealistic expectations.” - Mr. Feeny

Spend quality time with family and friends

You don't need to spend a cent to have a good time with friends or family. Go to a bookstore and just browse for an hour. Stay home and play board games and watch old movies you already own. Play a cribbage tournament. Discuss politics. Or Religion. Or money. Building relationships is free, and yet the payoff can be tremendous. What relationships can you invest in?

"Friendship for example, is a real gift. It's given with no expectations and no gratitude is needed, not between real friends." - Mr. George Feeny

Believe in yourself. If you can't, No one else will.

Do you remember your favorite teacher? Did they believe in you 100%? Or did they teach you to believe in yourself 100%? Great teachers (like Mr. Feeney) not only believe in you, but more importantly they teach you to believe in yourself. If you are unemployed, there is nothing attractive to an employer about a potential candidate wallowing in self-pity. Believe in yourself, and be humble enough to ask for help if you need it.

“Believe in yourselves. Dream. Try. Do good” - Mr. George Feeny

Let go of what you can't control

Sometimes we screw up and the consequences of our mistakes are completely justified. But sometimes, bad stuff happens, and there is just nothing you can do. You can't control the stock market. You can control however how much you spend each month on fast food. Control what you can. Let go what you cannot.

"Something bad happened, Mr. Hunter, but for the very first time you're not responsible." - Mr. George Feeny

Pull yourself away from the 24/7 news cycle

There is a whole wide world out there waiting for you to explore it. You just need to get off the computer first. Check out your local library, visit that free tourist trap in your home town you've never been too. Tell a random beautiful woman (or man) they look great. It seems like every day we are bombarded with more bad news. Yet, flowers keep blooming. Rabbits keep making more rabbits, and the world keeps on going even in the midst of a recession. Take a day off from the computer and TV. Unplug everything.

"Gutenberg's generation thirsted for a new book every six months! Your generation gets a new web page every 6 seconds. And how do you use this technology? To try and beat King Koopa, and rescue the princess. Shame on you. You deserve what you get." - Mr. George Feeny

Cut out destructive influences and draining expenses

Even Mr. Feeny knew when enough was enough. During difficult times, the last thing you need are bad influences on your health and finances. Cut. Cut. Cut. Cut out draining relationships and don't feel bad about it. You'll have more of yourself to give to others. Cut out unnecessary expenditures. This cutback tool from Wesabe makes it easy and almost automatic. Don't let silly purchases add up and cause even more stress in a difficult time.

"Sit down. Stay where you are. For the first time, I choose to walk out on you." - Mr. George Feeny

Keep your ears perked for opportunities

The reality is that during difficult times, a handful of companies and people make an absolute killing because they take calculated risks when everyone else is sitting on the sidelines. Polish that resume. Even if you feel safe in your job, it's never a bad idea to freshen up your resume. Update your profile on LinkedIn while you're at it. You are on LinkedIn, right?

"Come along, Mr. Matthews. Don't dawdle." - Mr. George Feeny

Give back when you are doing well and others are suffering

Things going really for you? That's great. Now is the perfect time to give back. Volunteer. Do some pro bono work. Fund an entrepreneur. The reality of life is that we all need help sometimes. Never be afraid to ask for help, or too high and mighty too offer it to someone in need.

"There is no greater aspiration than to have love in our lives, Mr. Matthews... If one of you fails you all fail. Your friend’s success is your success!" - Mr. George Feeny

What else would Feeny say?

What else would Mr. Feeny recommend we do or say to survive this recession? Share your best Feeny insight in the comments below.

Picking a video used to be the toughest part about home movie watching. Honey, I Shrunk the Kids or Fletch Lives? Gremlins 2 or Steel Magnolias?

But nowadays, the toughest part of home movies isn't which one we're going to watch. It's how we're going to get it.

With the introduction of movies in the mail (Netflix, Blockbuster) and movies in a vending machine (Redbox), compounded with cheap prices at big-box stores and movie downloads and online streams, there are more ways to watch Keanu Reeves act than there are roles that he is capable of playing. Having a movie night at home is now akin to planning a political coup or picking a college major. Will you regret the decision later? Could you be getting a better deal elsewhere? How come nobody has Babe 2: Pig in the City?

These are real questions that people are dealing with, and they are doing so in very different ways. With such a wide variety of choices for a movie watcher, there are just as many styles that people have adopted to fit in with their habits. The following is a quick list of a number of the different movie profiles. See which one best describes you.

Netflix snob. People who subscribe to the movie-in-the-mail service Netflix invariably think it is the greatest thing since sliced bread. They swoon over its convenience. They gush over its lack of late fees. They coddle their online movie queue as if it were a nursing infant. And they are 100 percent sure that Netflix is the best (and only) way to watch movies.

Their loyalty is admirable. Netflix is a great service that provides easy access to an endless supply of movie choices, so it makes sense that so many people have fallen in love. But with the most popular plan being $17.00/month, its cost is not an option for many. Just don't tell that to a Netflix snob.

Indie Redbox hipster. Redbox kiosks are the Arrested Development to Netflix's Two and a Half Men. Those who take advantage of the $1.00-per-night vending machine rentals at places like McDonald's and Albertsons feel as if they have stumbled upon a utopian wormhole in the movie rental world that no one else knows about. Seriously, who in their right mind would rent a movie at the same place one can purchase a Big 'N Tasty? And therein lies the indie Redbox hipster's secret weapon.

Redbox is a smashing success, but it remains largely under the radar compared to new services like Netflix. This is part of the appeal for the hipsters. They take great pride in stating to their friends that they rented the movie at a Redbox. And they take even greater pride when their friends respond in kind, "What's a Redbox?" The fewer people who know, the better chance that Juno will not be check out.

Thrifty Redbox family. The thrifty Redbox family and the indie Redbox hipster live completely different lives, brought together by a giant, red, movie-spitting machine. Where the indie hipster likes Redbox for its cool factor, the thrifty family likes it because it is cheap. One-dollar-per-night can't be beat, especially for families with a big brood to entertain.

Redbox realizes this, which is why their coffers are often crammed with Carebears, Mario and claymation. The Redbox really does make a perfect option for a thrifty family because the price is right, the movie selection has kid fare and adult fare, and the Big 'N Tasty value meal is just a few steps away.

Walmart bargain bin diver. You may have seen this person (or been this person), elbow-deep in a pile of Mickey Blue Eyes and Super Troopers, straining desperately in hopes that The Horse Whisperer: Director's Cut is sitting at the bottom of the bin. Those $4.99 movies can be quite a draw for some people, yet the bargain bin diver loses all sense of what makes a good movie when the price drops that low, focusing solely on what a good deal they just got on Candace Bergen's breakout hit.

The taste of cheapness is what drives this type of person, and since there's a good chance they have never heard of alternatives like Redbox or Netflix, they feel that dumpster diving in front of the Walmart entertainment section is the best way to go. And maybe it is. After all, some day The Horse Whisperer: Director's Cut might actually be on the bottom.

Sunday ad movie hoarder. There are those who just love owning movies. They appreciate the autonomy of settling down for a movie night and choosing from their library of flicks without worrying about going out or waiting for the mail to see what's on.

Of course, buying movies isn't cheap. Just ask the Walmart bargain bin diver. That's why this person uses the Sunday ad to her advantage. Each week, stores like Best Buy, Circuit City, and Target mark down the prices of select DVDs, and a wise hoarder keeps an eye out to see when her favorite films go on the cheap. Though the more affordable option of one-time rental still remains, the movie hoarder makes up for the difference by snatching up movies that will get repeated playback and in warming her soul with the comfort of owning free-and-clear.

Reclusive cable/satellite downloader. Services like DirecTV and Comcast allow subscribers to choose new release movies to watch through the comfort of their cable box. But have you ever met anyone who watches movies this way? No doubt these pay-per-viewers exist, but they are so incredibly rare (or so incredibly reclusive) that they barely register in the movie watching conversation.

The convenience of pushing a button on the remote is the biggest draw for this type of movie. But with non-competitive prices and with unclear viewing rules, the on-demand movies tend to only cater to a small population - a small, agoraphobic population.

Nostalgic in-store rental geezer. Some people still get their movies the old-fashioned way: at the movie rental store. Places like Blockbuster and Hollywood Video aren't as popular as they once were, but they still pose a certain familiarity for people who are used to getting their movies by staring blankly in a store for 30 minutes trying to pick out what they want.

It is safe to assume that mostly old people do it this way. Some of the newer technologies just don't work with their lifestyles, so they end up heading down to their tried-and-true movie store instead. Don't be surprised if Blockbuster starts stocking more Charlie Chaplin films.

Chameleon. Most of these movie types are extremes. Chances are that most people take a chameleon approach, choosing bits and pieces of each depending on their mood or needs. With so many movie watching options available, can you blame them?

What type of movie rental personality are you?

Parents choose to give their children an allowance in lieu of (or in addition to) earnings from a part-time job for a number of reasons. Children may be too young to work at a traditional job, parents may prefer that their children focus on school work or enjoy their childhood, or the allowance may simply be a means of teaching money lessons in a tangible way. Once the decision to give an allowance has been made, the following interconnected questions must also be considered:

What Age Should You Start At?

While it’s never too soon to start many of life’s lessons, introducing money at too young an age may taint the innocence of youth. Beginning before basic math skills have developed may also make the concept of money seem complex, even though basic finance is quite simple. Waiting too long before introducing the concept may allow misconceptions about money to form. Every child is different, but sometime between ages 7-10 may be most appropriate.

How Much Should You Give?

The amount of allowance will likely be set relative to the type of lifestyle you yourself lead, as well as the other factors listed here. A dollar a month may suffice in certain situations and significantly more ($100 a week or more) may be warranted in others. You may also set a base limit that can be increased when certain criteria are met.

What is Expected for the Money?

Is good behavior, success in school, completion of chores, or a combination of all of these (and more) required for allowance payments to continue? Establishing the expectations that accompany the allowance will set a standard of fairness and help to avoid confusion.

What Must Be Paid For With the Allowance?

Will the allowance have to cover basic needs or just discretionary spending? Obviously the former case will require a much larger allowance. In the latter case, you might supplement the allowance with an occasional discussion of the cost of other items provided, to give insight into the costs of running a household.

What is the Purpose of the Allowance?

Is the allowance given to teach lessons about money, grant freedom in spending, or for some other purpose? Defining this purpose will help to establish many of the answers to the other questions posed here. If you give your kids an allowance simply because their friends get one (or you got one at their age) you may miss out on the value an allowance has to offer.

As I said above, these questions are all inter-related. As a result, you can probably answer whichever one seems easiest to you first, and then build on that answer to help answer the rest. I suspect that many people will choose to answer the purpose question first, since there is usually an underlying inspiration for considering an allowance to begin with. Whichever order you choose to answer the questions in, asking yourself these five questions before giving your child an allowance will help to make the experience as beneficial as possible.

How did you answer each of these questions?