There are two reasons why people lose economic confidence. In the first case, there’s enough instability that you just don’t know what’s going to happen. In the second case, you have a pretty good idea about tomorrow, but you know that things are going to be genuinely bad.
If you know things are going to be genuinely bad, then given sufficient resources, you can prepare for them: save money, make a budget, gather information and make plans. In particularly, if you know (for example) that your income is going to drop or your rent is going to go up by a preset amount, you can budget accordingly. But if you really have no idea about tomorrow — whether you could get your pay cut, or get outright fired, whether gasoline prices could halve or double — then you just lurch from day to day, not knowing quite what to do, afraid to spend, afraid to save, generally, afraid.
This is where colleges and universities are now: