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Tough Times How the recession has made its mark on three local families. By Kerri S. Mabee, Michael Medley and Amy BentleyPublished: September, 2008

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While national and local economists make their dire pronouncements about record home foreclosures, rising unemployment rates and soaring energy costs, local families are doing their best to cope with the troubling everyday realities of these rough economic times … like the outrageous cost of driving to and from work, and the skyrocketing price of laundry detergent.  Honestly, does it REALLY cost $10 for a gallon of soap?     OC Family magazine takes a look at how three local families are riding out this giant, unsteady wave of recession. Cutting WAY back On children’s playgrounds and in office lunchrooms, in line at grocery stores and gas stations throughout O.C., people everywhere are talking about one thing: the nation’s economy. It’s on everyone’s minds and hitting their wallets hard, forcing families to make some big changes in how they live, work and play.     You don’t need to travel very far to see the signs (literally) of just how many folks are tightening up their money belts. Our once-bustling roadways are accommodating fewer commuters. Furniture stores are deserted. And Starbucks – at least two in Orange County – are closing their doors.     There have been some increases in certain areas: Libraries and local food banks are thriving with even more visitors; pet shelters are filled with animals that can no longer be cared for; and some community-sponsored events, like concerts and outdoor movie nights, are teeming with families looking for entertainment that is inexpensive and close to home.     Katherine Ransom, communications manager for Goodwill, shares that sales are up 11.5 percent from last year. She reports that their website, shopgoodwill.com, has generated a sales increase of more than 20 percent since May 2007. “Our customers run the gamut,” says Ransom. “We are finding that people are being more careful with their spending habits, and families are looking for good values.”     But some Orange County families are doing more than just curtailing their spending. Many are making lifestyle changes that involve commitments to recycling, energy conservation and some good-old-fashioned fiscal accountability.     Jeff Young and his wife, Laura, have responded to spiking gas costs by re-arranging their work schedules and parking their SUV in the driveway. Laura takes the train to her job, requiring Jeff to get their son, Brandon, to school. Because Jeff’s district management position with Sears requires extensive travel, he has been especially careful to group his store visits together so they are conveniently close.    “It requires more planning, but we just can’t afford for both of us to commute to our jobs under these circumstances,” says Jeff. “We rethink everywhere we go now, including vacation spots. Normally, we try to schedule a fairly extensive family holiday, but this summer, we’ve had to limit ourselves to a brief Las Vegas trip.”     According to Jeff, Laura has “become an expert on coupons and sales” and scrutinizes their spending habits. “We are careful to cluster our errands so that we can make good use of our time and gas money,” he says. “We’ve cut back in many ways, but we’re OK with it. My wife enjoys taking the train. It gives her a chance to mentally focus and prepare for her day. It’s simply been a matter of scaling down and finding a balance we can live with.” Kerri S. Mabee is a regular contributor to OC Family magazine. Rethinking the American Dream "Home." If there is a word that reaches the heart as much as the word “family,” that’s the one. Whether it is humble or grand, the family home is our port in the storm, as well as the most tangible part of our American Dream.     And now American families are losing their homes to foreclosure at a rate not seen in generations, and Orange County is feeling the pain. According to DataQuick Systems, notices of default on home mortgages increased nearly 150 percent in Orange County from the second quarter of 2007 to the same period in 2008.     The dry numbers take on a sense of stark reality in some of the harder hit areas of Orange County, such as some sections of Anaheim and Santa Ana that had been targeted in recent years by subprime lenders. A drive through some neighborhoods reveals home after home with “Bank Repo For Sale” signs in the front yards.     Figures from DataQuick recently published in the Orange County Register showed that the 92701 zip code in Santa Ana was one of the hardest hit areas, with 23 foreclosures per 1,000 homes in the second quarter of this year. Compare that to 10 foreclosures per 1,000 in the first quarter.     Neighborhoods that once bustled with activity – kids playing in front yards and the comings and goings of families – have become virtual ghost towns. A few families might be hanging on, surrounded by empty and silent houses.     Economists can debate and explain the various causes for this foreclosure crisis, but all of that is of little consequence to a family that suddenly finds it a struggle to keep a roof over its heads.                         One local family that recently endured this trauma is Ryan and Crista Bailey and their three kids, ranging in age from 1 to 6.     Ryan owns his own business, and when that business began to slow down, the family realized that their home was in jeopardy. Crista was pregnant with the couple’s third child and unable to take on outside work at the time to ease the financial strain.     “My husband and I did not go out and purchase our former home irresponsibly,” Crista says. “We purchased just what our family needed and could afford.” When foreclosure became inevitable, Crista says, the family was “devastated to have our home, our investment and our credit destroyed.”     On the advice of a real estate agent, who is a friend, the Baileys did a short sale. The Baileys lived with family for almost a year and are now preparing to move into a rental home. “The home is next to my son’s school and is in an area we really like,” Crista says.     As to the future, Crista says, “My husband and I have not given up. We look forward to the future with hope and the knowledge we have gained through our experience. Our plans are endless, and we plan on going through the process of owning a home again.”     Funny thing about that American Dream. For the Baileys, it is one thing that is still recession-proof. Michael Medley is a senior writer. Lost and newfound jobs For the past two years, Sandra Robbie was able to pursue her personal passion while her husband worked as a successful real estate agent. Sandra traveled around, lecturing about her documentary, “Mendez vs. Westminster: For All the Children/Para Todos los Ninos.” The documentary, which first aired in 2002 and won an Emmy, explores the historic 1946 court case that desegregated public schools in Orange County. Robbie produced it while working as an intern at the public television station KOCE-TV.     Today, Robbie, 49, who lives with her husband and their two teenagers in North Tustin, works full-time as an administrative assistant at Chapman University’s School of Education, a job she started in June. Future pursuits with the Mendez project are on the backburner. Sandra was earning income only periodically from speaking engagements; now she needs a regular paycheck.     Her husband’s real estate business of 10 years has dried up, like so many others throughout the state and the country. Last summer, the couple was faced with no income. Fortunately, things are brighter today, with both working at new jobs that Sandra calls a “good fit” (husband Alec Robbie, 53, is working in property management).     “Overall, our family is closer now because of all this. Our faith is stronger and our marriage is stronger. We wouldn’t go back to what we had before,” she says.     “We’re just watching what we spend,” adds Sandra, who went on what she calls a “fashion fast”; she has not bought herself a single item of clothing since last November.     Around Orange County, thousands of Realtors, mortgage officials and construction workers have lost work during the recession. Chapman University’s mid-year economic forecast, released in late June, predicts that job losses in Orange County will approach 18,000 this year, the first time the county has not created new jobs since 2002. The good news: Chapman predicts that in 2009, the Orange County job picture will have recovered, somewhat, adding an estimated 14,200 jobs.    Those who lost work have to reinvent themselves in new careers to survive, says Jack Kyser, senior vice president and chief economist for the Los Angeles County Economic Development Corporation, a leading business organization. Workers formerly in executive-level finance or real estate jobs are seeking any kind of employment they can find, often at lower wages, Kyser says. And in tough times like these, “No job should be beneath you.”     Many of those who earned big bucks in finance or real estate, however, are finding that employers won’t hire them for lower-wage jobs, for fear they will leave once the mortgage industry picks up, says Michael Anderson, area manager for the Team One Employment Specialists, with offices in Irvine, Mira Loma and West Los Angeles. However, Anderson says jobs are plentiful in the $30,000 to $40,000 (or less) pay range, and that those with the best employment prospects include people with a skilled trade, clerical experience or experience in manufacturing and project management.     Hard times are here for a lot of O.C. families, but the Robbies are among the luckier ones. Says Sandra: “Hopefully, our children will learn from this.” Amy Bentley is a contributing writer to OC Family magazine. The top 10 recession survival tips 1. Start saving money now! Open a savings account, IRA, 401(k) account or CD – and consider a tax-deferred college savings account for the kids. 2. If you’re unemployed, get work from a temporary agency while actively seeking employment in your field. “Look around and find out who the bigger temporary agencies are and if they have work in your specialty,” says Jack Kyser, senior vice president and chief economist for the Los Angeles County Economic Development Corporation. “Sitting around the house doing nothing and sending out resumes, where you get back a lot of ‘no’s,’ is going to be very discouraging. It’s very bad for you, mentally.” 3. Re-evaluate discretionary spending. Let go of the regular Starbucks beverages, expensive spa treatments and impromptu trips to the mall. 4. Look for bargains. Take the family out to dinner at restaurants that let kids eat for free on certain days. Buy groceries and household goods at the dollar store for big savings. 5. Pool your resources with friends and family. Set up a neighbor carpool for dropping off and picking up the kids at school, and help each other out with meals, babysitting and even gardening work. 6. Put the kids to work. Let your teens take over household tasks like cleaning, mowing the lawn and car washing. 7. Get organized. Group your errands so that you are making an efficient use of your time and gas. 8. Curb your energy costs by turning off lights and appliances when not in use and by substituting fans for air-conditioning. 9. Don’t cling to the brand names. If you can live with an off-brand soap or toilet paper, go for it. 10. Petition your employer for a flexible schedule that will allow you to work a four-day week.

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