Description: Canada is in recession. The U.S. has been in a recession since December 2007. Many countries across the world are in recession. "… the global financial system is experiencing its most severe crisis since the 1930s." This 10th annual family finances report attempts to achieve two main objectives: 1. Provide an update on the latest trends in household finances, including some comparisons to what is happening in the US. The main message is that the financial trends for households in Canada are not that different from those in the US. Perhaps a bit better but not a whole lot better. 2. Attempt to paint a picture of what a recession might imply for Canadian household finances over the next several years. The simple message is that it takes years and years to return to pre-recession conditions. Highlights of the report include: Recession is very hard on families- We are in a recession. Poverty reached a new high during the last recession and did not return to the 1990 level in 11 years. Debt loads are in the danger zone- Average household debt soared to over $90,000 in 2008. Spending and debt rise much faster than incomes- Spending increased twice as fast than income raises and total debt increased more than six times faster than incomes. Annual savings shrank. The wealth that went up has now come down- Average net worth declined in 2008 as the stock market sank, house prices began to slip and debt increased. Unattached individuals aged 18-64 are the forgotten poor- The number of unattached 18-64 year olds is still more than 50% higher than was the case in 1990. Lone-parents with one child now get welfare payments equal to at least the poverty level in Quebec and Newfoundland and Labrador (these provinces have anti-poverty strategies).