Changing habits: A bright side to the recession?

Unemployment is at a 26-year high, nest eggs are cracked, and home values are under water, but many Americans are surprisingly upbeat, said Jeannine Aversa in the Associated Press. “Chalk it up to the power of positive thinking, combined with people saving more, spending less, and trimming debt to cope with the recession.” In fact, debt-related stress among Americans is currently 12 percent lower than in 2008, according to a new AP-GfK poll. “People are doing things that make them feel they are taking charge of their lives again,” says Patricia Drentea, of the University of Alabama at Birmingham, who studies debt and stress.

No doubt the recession has been a dose of cold water for many budget-averse Americans, said Kimberly Palmer in U.S. News & World Report. But will this new “moderation” continue after the economy bounces back? Perhaps for some, says John Quelch, a professor at Harvard Business School. Ultimately, he expects that “up to 10 percent of consumers will change their behavior on a sustained basis,” though their reasons may not be solely financial. While necessity has driven a shift toward thrift, many newly minted savers claim to be happier now than during their days of unchecked spending. “People have kind of woken up, and they feel the things they consumed don’t match who they are and their identity,” says Robbie Blinkoff, principal anthropologist at Context-Based Research Group.

If you’re in your 20s and 30s, there are lots of reasons to be optimistic, said Erin Burt in Kiplinger.com. “Because you’re young, you have plenty of time to rebound from any personal setback and even use the crisis to your advantage.” The Standard & Poor’s 500 stock index recently “stood 44 percent below its all-time high, reached on Oct. 9, 2007.” There is almost nowhere to go but up, and years in which to do it. Don’t own a home? Lucky you. Median home prices are down about 25 percent since 2006, mortgage rates are “near record lows,” and first-time buyers can qualify for tax credits worth up to $8,000. True, the job market is dire. But even that might present a bright side: “The recession may lead you to explore life and job paths you might not have considered otherwise.”

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