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CHICAGO (CBS) ― Financial turmoil is difficult for an adult to comprehend, but how about the children? How are they processing it? And how do parents reassure them? CBS 2's Vince Gerasole reports on how to talk to your kids about the economy.

Drastic drops on Wall Street, homes not selling in a haunted housing market - adults struggle with just how to explain it all, but apparently children were listening.

"People can't pay off the loans so they get their house taken away," said 10-year-old Henry Hitterman.

"The other problem is some banks are getting scared and not lending money to other businesses," said 10-year-old Atreya Mishra.

Apparently it's impossible to shelter children from the economic concerns of our changing world. It can all lead to fears at any age.

"I'm kind of nervous," said 11-year-old Clayton Bertoletti.

"I know a couple of people who just lost their jobs, it's sort of creepy," said 11-year-old Elise Swibel.

"It's scary because I've read a lot about the Great Depression and it sort of makes me think we're heading that way," said 10-year-old Claire Doyle.

As parents it may be our first instinct to shelter our children from disturbing information, but that could be a mistake.

"Your job is not to protect your children from worrying, your job is to help them manage their worries," said Child Psychiatrist Dr. Bennett Leventhal.

Dr. Leventhal says parents can be truthful with their children to calm their fears without being brutally honest. It's working for Elise Swibel.

"Sometimes my dad lets us watch the news and then we're like, 'what's happening?' He tells us everything that happens," Elise said.

Experts suggest before talking to children about financial matters that we develop an outline for just what we want to say. Reassure them and also give them a role in coping with the family's personal financial challenges - such as doing more chores.

"Hiding it isn't going to make it go away, it just makes it go underground. And that's what makes children anxious and upset and leads to long term problems," Dr. Leventhal said.

Ironically, unemployment and making do with little during the Depression was a positive building block in Penelope Robinson's childhood.

"We were poor and everybody we knew was poor, we thought that was normal," Robinson said.

Robinson grew into a respected educator. As a child, she was caring for her infant sister so her single mother could support the family.

"It gave me a sense of responsibility," Robinson said. "And she was really like my little baby as well as my baby sister - made us very close."

Similar lessons are now being learned decades later as families confront another economic crisis together.

"My dad, the last couple of weeks, said we are only going to go shopping once a week and just buy the stuff we need," said 11-year-old Clayton Bertoletti.

"Well, we had to sell, we had an Expedition that only got like 10 miles per gallon and we had to sell that to get a little car," Elise said. "I liked the Expedition 'cause it was very roomy, but the little car – it's okay."

If you need some help to get the discussion going at home, try reading books with your kids. In "Ramona and Her Father," a 7-year-old copes with her dad losing his job and becoming depressed. "How to Steal a Dog" explores how a family living in their car tries to collect a lost pet reward; and finally the classic "Roll of Thunder, Hear My Cry" is a family's civil rights saga set in the Great Depression.

Here is a list of suggested reads to share with children that deal with tough economic times:

Tight Times
By Barbara Shook Hazen, illus. Trina Schart Hyman Grades K-3
A small boy, not allowed to have a dog because times are tight, finds a starving kitten in a trash can on the same day his father loses his job.

Rag Coat
By Lauren Mills Grades 1-4
Eight-year-old Minna is teased at school because the coat she wears is made of rags. But she tells her classmates that the coat is made from pieces of all their childhoods, and they come to understand how special it really is. The Appalachian setting is strong, and the nostalgic story is well matched by Mills's watercolor-and-pencil drawings, which have an old-fashioned feel.

Rudy Rides the Rails
By Dandi Daley Mackall, illust. Chris Ellison Grades 2-5
In 1932, during the Depression in Ohio, thirteen-year-old Rudy, determined to help his family weather the hard times, hops a train going west to California and experiences the hobo life.

Ida B and Her Plans to Maximize Fun, Avoid Disaster, and (Possibly) Save the World.
By Katherine Hannigan Grades 3-6
In Wisconsin, fourth-grader Ida B spends happy hours being home-schooled and playing in her family's apple orchard, until her mother begins treatment for breast cancer. With the medical bills mounting, her parents must sell part of the orchard and send her to public school.

How To Steal a Dog
By Barbara O'Connor Grades 4-7
Living in the family car in their small North Carolina town after their father leaves them virtually penniless, Georgina, desperate to improve their situation and unwilling to accept her overworked mother's calls for patience, persuades her younger brother to help her in an elaborate scheme to get money by stealing a dog and then claiming the reward that the owners are bound to offer.

On the Wings of Heroes
By Richard Peck Grades 5-8
A boy in Illinois remembers the homefront years of World War II, especially his two heroes--his brother in the Air Force and his father--who fought in the previous war.

The House on the Gulf
By Margaret Peterson Haddix Grades 5-8
New to Florida, Britt is thrilled when her older brother's housesitting job provides the family with a place to spend the summer for free. However, Bran's oddly evasive behavior leads Britt to suspect he is harboring a secret about the house and its owners.

The Truth About Sparrows
By Marian Hales Grades 5-8
Twelve-year-old Sadie promises that she will always be Wilma's best friend when their families leaves drought-stricken Missouri in 1933, but once in Texas, Sadie learns that she must try to make a new home--and new friends, too.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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