Bank bailouts, bankruptcies, and the falling DOW index are hogging the news headlines. Without going into the droll details of how a bank fails, here it is in simple terms. Banks fail when the money they take in from customer accounts do not cover their liabilities of money they loaned out, and borrowers default on those loans. Ordinary bank customers have nothing to fear if their bank balances are less than $100,000, as those amounts are federally insured should your bank fail.

"What do I do now?" This is the question that is being asked by everyone from baby boomers on the cusp of retirement to 20-somethings who have just started their retirement savings. Today's volatile market has left everyone in the dark. "Challenging economic times call for a return to basic principles, like a commitment to personal savings, seeking professional advice to help investors assess their personal situations, and employing a holistic approach to retirement planning," [...]

Most of these changes will not put a serious strain on daily life. In fact, many low income families have had no choice but to implement these practices for years just to stay afloat. All of the additional focus on family time, planning ahead, and reduced weekly schedules might make you and the kids want to always worry about that “emergency fund.” For added security, put your savings in a separate bank with a higher yielding interest rate than your current bank.