A drop in income -- whether it's due to being laid off from a job, a drop in hours or a decrease in income from investments -- is a scary and unsettling situation for both adults and children. It is important to talk through the situation with family members as quickly as possible, even though it might be hard to do.

"Adults can easily feel overwhelmed by the added stress and sense of reduced financial security. It is important to remember that children sense the tension in the family and may feel less secure, but don't know what to do about it," said Bridget Mouchon, University of Wisconsin-Extension family living agent in Green County.

Parents could be less engaged with their children and more likely to become upset or angry over little things because of higher stress levels. Keeping the lines of communication open during times like these can help everyone feel more connected.

Family communication also can help older children and parents find ways to work together on managing the family finances. Even young children can be taught about wants and needs and how family financial decisions are made.

Mouchon offers some tips for family money meetings:

• The most important thing to remember is to leave blame at the door.

• Recognize and respect each other's attitudes toward money, and approach discussions in an organized way. Work to find common ground so you can all work in the same direction.

• Make sure it is a good time for each of you to talk. If one of you has had a bad day or received difficult news, you might want to reschedule the discussion.

• Set ground rules. Make sure you both have an opportunity to be heard, and listen to what your partner is saying. Avoid accusations and blame.

• Set and prioritize your goals together and stick to the plan unless something significant occurs and you need to alter it.

• Set aside time each month for a money meeting. Regular meetings will become easier to do and keep you on track.

You might need to meet more frequently during times of financial stress. Try to set goals that are obtainable, and leave everyone something that will keep their spirits up. When planning about cutting back on spending, find alternatives. For example, if you can't afford to go to the movie theater or rent movies, plan to go to the library and borrow them, or start a movie-lending group with friends. Finding free and inexpensive alternatives can keep family members from feeling the brunt of financial hardship.

Some financial decisions are harder to make. For example, you might wonder how you will afford to buy food and pay your rent or mortgage. What will happen if you can't pay your credit card bills right now? You need to take action right away if you are asking these questions. Find out about any and all financial supports that are available until you find another job or your hours are increased. You can help keep your family healthy and happy by finding support such as energy assistance or health insurance through Badgercare.

If you are worried about overwhelming debt or unable to make mortgage payments, call your lenders to work on a payment plan before you get behind on payments.

"Be realistic about what you can afford. This means that you have done the math and know that you can meet your basic needs, while doing the best you can to meet your financial obligations to your creditors. Meeting with a reputable financial counselor might be helpful," Mouchon.

See www.debtadvice.org for agencies accredited by the National Foundation for Credit Counseling.

Your county UW-Extension office is a good source for financial management education programs and services. For more information call the Lincoln County UW-Extension office at 539-1072.

Jennifer Smith is an interim family living specialist at the University of Wisconsin-Extension office in Lincoln County.