1. Why should we care about what happens on Wall Street?

Wall Street controls how money works in our society, including your money. All car loans, all home loans, all credit cards - anything you borrow money to buy - Wall Street affects. If WS goes down, your access to leasing and getting loans becomes unattainable. Additionally, the recent bailout of Wall Street will result in massive inflation, meaning that everything will be getting much more expensive, including every day things like groceries. Being prepared for this inflation will put you at an advantage later.

2. Should we cut back/stop our contributions to our 401K?

Not necessarily. Your first priority is to get rid of all of your debt. If you use the money that you would have put into your 401K to get rid of your debt, then yes. If you have a long time horizon before retirement, say 20-30 years, your 401K can stay like it is. If you are going to retire in 5 years, the deep recession we are heading into could have an adverse impact on your 401K and you should consider protecting your wealth by investing in other areas.

3. Where's the safest place to keep our money?

In the U.S. , there are few safe places for your money to hide. The dollar will decline rapidly, as will the stock market, as will government bonds. Consider investing in companies that produce resources like oil, timber, precious metals, wheat - resources that people need. Or with countries that are historical safe havens for money, like Switzerland (you can buy Swiss Francs, or Swiss bonds). Historically, precious metals, like gold and silver, do very well in times of economic crisis.

4. What is the first thing we should do if we loose our job?

Take a realistic look at your financial situation - your debt, your assets, and your monthly expenses. If you have plenty of savings, you can take your time and shop for the right job. If you are in more of a desperate financial situation, you should seek out any employment (temporary employment agencies, etc.) and swallow your pride. Some income is better than nothing. If you qualify for unemployment, you need to apply immediately.

I am Jill Keto, author of Don't Get Caught With Your Skirt Down: A Practical Girl's Recession Guide, which addresses the collapsing U.S. economy and practical solutions to survive in it. My expertise is in the current recession and lifestyle factors surrounding it, including how women can take charge of their money. My book is presently #5 on Amazon for "recession" books, and the only one for women.