MUCH has been written about the recession - Wall Street banks, retrenched workers and a global economy in gloom.

But the economic fallout is not only restricted to the stock market or factory floor; it has found its way into once-happy families, fracturing marriages and care-free childhoods.

'The emotional impact of this recession on children has been totally forgotten,' said Dr Kit Ng, a family psychologist and director of The Center For Psychology.

He is now seeing a 15 per cent rise in cases compared to four months ago, due to the recession.

Said Miss Karin Goh, a psychologist at his clinic: 'At the macro level, many things have been done, such as worker retraining. But at the micro level, where we are talking about families, comparatively little is being done.'

The recession affects children in indirect ways, causing emotional upheavals and forcing lifestyle adjustments to lower allowances, said Mrs Chong Cheh Hoon, a counsellor and senior vice-president of Focus On The Family.

'Watching the self-esteem and emotional well-being of their parents degenerate can cause extreme anxiety,' she added.

How is it like for a child to see his dad get retrenched? What does it do to a child's self-esteem to have his swimming or ballet classes abruptly cancelled?

A child's plight, while not as visible, can be just as difficult. In a way, the difficulties a child experiences in this recession are not entirely alien. They are similar to, say, moving to a new school, said Miss Goh.

'The recession is a kind of transition for a child. Any kind of transition in a child's life can be disruptive,' Miss Goh said.

'But the difference is, in a recession, we're talking about money and the quality of a child's life.'

While adults have a greater cognitive capacity to deal with transitions, children react in an emotional way, said Miss Goh.

'They may become anxious, hyperactive, distracted in school and start to do things out of character, such as being overly sensitive.'

Parents can find it difficult to balance their anxiety at work with their duty as providers and role models.

One of the cases Mrs Chong is handling now involves a family which had much of its finances wiped out last October.

'The father became listless and angry and refused to be engaged in family activities,' said Mrs Chong.

'He felt like a loser and turned abusive by hurling disparaging remarks at his kids and wife who has to watch the tirade helplessly from afar.'

Doing the opposite - putting up a false front - may not necessarily be better either, said Mrs Chong.

'It depends on the reasons. Are parents trying to make their kids feel secure? Or are there more insidious reasons such as 'shaming factors' and 'keeping up with the Jones'?' she said.

If the latter is the overriding reason, then the obvious question becomes: Are such parents providing an example of integrity and respect?

Miss Goh's advice for parents is to be direct and honest.

'If your daughter asks you why she's not going for ballet classes anymore, say something like 'Daddy doesn't have enough money to send you there anymore',' she said.

If there is a silver lining to this recession, it is that it presents an opportunity for role-modelling.

'If a parent goes out drinking every night, a child is going to think that when this happens to him in the future, that's what he's going to do too,' said Miss Goh.

Added Mrs Chong: 'Grouses aside, this may be a good time to remind children to recount their blessings and to remember them in this age of Plenty and Waste.'