Age of Anxiety
The long-term psychological effects may be most profound for young children, since they are growing up without any real memory of better times. They can pick up on parents' anxiety about money and may see the world as an uncertain place where they have to struggle to succeed. Later this may make them cautious about career choices and financial decisions.
TWEENS AND TEENS
These age groups will have more of a sense of loss than the youngest kids and may take the change in material circumstances personally. They're likely to pay more attention to the economy and business than they used to. And they may lose confidence in the idea of the American dream and the assumption that they will live better than their parents.
This is the millennial generation, favored, protected, coddled. They are entering the workplace at a terrible time, and their first career decisions could have financial implications that last for years. They may resent their parents for raising them to believe that their success was assured.