The economic news lately has been a little frightening. It seems like banks are failing all over. This week, Tracy Davidson, consumer reporter for WCAU in Philadelphia, talks about what you can do to protect your money.

Wall Street Woes! What Should I Do?
by Tracy Davidson

Lehman Brothers filed for bankruptcy. Bank of America acquired Merrill Lynch. And the market is taking a dive.

In such situations, what's the best financial advice for average folks like you and me? Actually, financial planners are giving the same advice now as they did when the crisis began. And for the sake of saving your money, it's worth shouting from the rooftops!

Be smart, don't panic
Smart financial planning is always long range. Don't react with your emotions.

If your bank is FDIC insured, don't worry
FDIC insures up to $100,000 per depositor, per insured bank. If you have more than that, FDIC provides separate insurance coverage for deposit accounts held in different categories. Meaning: If you have single accounts in your name, your joint accounts are looked at separately. If you have questions about that or want to see if your bank is FDIC insured, check online or call 877-275-3342.

The best thing you can do
Protecting your house should be your number-one priority in tough economic times, so take care that you are making responsible moves with your money. Are you borrowing too much? Carrying too much debt? Really take a good, hard look at how you manage your money. How do you spend and save? If a domino collapsed in your world, would you still be able to pay the mortgage or make your car payment? Or are you extended to the max? Are you saving as part of a personal financial plan with goals and objectives (the kids' college education, your retirement, etc.)? If there's anything you should do in the wake of all this—this is it!

If you have money invested
As always—not just when the market is tanking—make sure your portfolio is well diversified. Review your investments on a regular basis, even your 401(k) allocations. And seek professional help. I can't possibly pretend that I know everything there is to know about investing. That's not what I do for a living. So what do I do? I seek out experts who can help me make the best decisions for my family in the long term—not just not gut-reactions. Does it cost a lot of money to seek professional help? No. There are plenty of free financial planning seminars. Ask your local bank or call your local Consumer Credit Counseling Service office and ask.

Have faith
If you're like me, you get overwhelmed and panicked when you feel helpless. You are not helpless. Take control of what you can: your finances. Even if you just take one small step, like paying more than the minimum of your credit card bills, that's something. That's a first step toward being more responsible with your money and your future. Take a deep breath and start. You have more control than you think.

Check out All That & More with Tracy Davidson.

Read more of Tracy's blog posts.