Growing Up in a Recession

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Then she turned in her leased BMW and got a used Volkswagen (VLKAY) Beetle. In August the family moved to a nearby one-bedroom apartment. "My kids have taken it all really well," she says. "We're not going to Toys 'R' Us, we're not flying to New York, but we're spending more time together. And they like that." After almost a year in close quarters, though, the kids are asking when they can get a bigger place. "They want to move to a farm," Nicole says. "I tell them: 'Let Mommy sell some houses first.' "

Identity Issues
Eugene Schwartz worries about his financial predicament every day. But he doesn't want his kids to worry at all—they should be frugal but not fearful. Eugene has been a commercial real estate lawyer in Manhattan for more than 20 years, but commercial real estate in Manhattan gave out in September. He and his wife never lived extravagantly, but they lived well: a nice house in suburban Connecticut, two cars, two vacations a year, dinners out, son and daughter at private colleges. "Of all the roles I live, the one I cherish most is being a good father," he says. "Part of being a good father is that your children can look to you to take care of them—financially, spiritually, lovingly, emotionally. But it's been more and more difficult to play the role of provider."

Eugene had hoped to retire when his kids finish school. Now he's considering withdrawing cash from his retirement account when he turns 591/2 (and can do so without penalty) to pay for the rest of their college tuition. He won't consider having Brooke and Justin take out student loans. "My father, a man of very modest means, put me through college. That's what I owe my children. That's the deal I made with myself," he says.

Eugene has other concerns. Earlier this year, he mentioned to his daughter that work had slowed. Brooke had started school in Washington, D.C., and the two became accustomed to a daily check-in by phone. The next day, and every day after that, Brooke asked how things were going in the office. "I'd say: 'Ehhh, you know.' Then she'd say: 'It's going to get better.' And we'd leave it at that." Brooke hasn't expressed concerns, but "it's an odd thing for a kid to ask a parent," says Eugene. "Now it's on her mind that I'm not having a great day. I think that's an unfair burden."

Eugene's Depression-era father warned him that economies and markets can come crashing down. "None of us listened," he says. "Times have always been good." Difficult times may not make people stronger, Eugene figures, but "it gives perspective, and that's always good."

To see an interview with Morris Dickstein, author of a forthcoming cultural history of the Great Depression, go to businessweek.com/go/09/kids

Berfield is an associate editor at BusinessWeek .

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