Economy and Money

I'm wondering, fellow music teachers, how has the economy affected you?  I have had one student discontinue lessons in part because of parent job loss.  I have another family that has had to cut back to every-other-week lessons because of job loss.  What have you seen?

On an another note related to money - I have a student who has not paid for a month of lessons (actually the same student who is not longer studying with me).  In my last discussion with the mother, she said she would drop of a check, but did not follow through with that.  I'm guessing I'll probably "forgive" the debt in this case.  What would you do?