On this episode of the Money Confidence podcast, Sarah and Georgia talk about what a recession is, how long a recession usually lasts and what it means for you.
A recession is a significant, widespread and prolonged downturn in economic activity. There are different definitions of recession.
Economists define a recession as an economic contraction starting at the peak of the expansion that preceded it and ending at the low point of the ensuing downturn.
A recession is caused by different factors. Causes have included oil price shocks, financial panic, rapid changes in economic expectations, a health crisis, tight labour markets and wage-price spirals.
Recessions may last as little as a few months, while the economic recovery to the former peak can take years.
The average U.S. recession since 1857 lasted 17 months, while the six recessions since 1980 have lasted less than 10 months on average.
Recessions have happened in the past. After recessions there will be recovery. Although it can be scary, making little adjustments such as planning, saving and reducing your spending can help you get through it.
'The less I know about something, the more stressed I am about it.'
'We've had recessions in the past. We know that with a recession a recovery will happen.'
'I saw a shooting star. I don't think I've ever seen a shooting star before.'
''Every time I saw one my eyes welled up.'
'I just want to say thank you to the listeners out there. Thank you for taking your valuable time to listen to the podcast.'
'We have listeners all over the world.'
'We are trying to do more episodes that are international.'
'The cause of each recession will differ, but the outcome has always been the same – recovery.'
'Our food shop bill has more than doubled.'
'I won't be having my heating on.'
'I wash all my clothes on zero degrees as it's better for the environment.'
ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
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