Nov 12, 2009 5:47 pm US/Central
Recession Teaching Folks To Be 'Frugal Forever'
Families Are Hitting Thrift Shops, Cutting Back On Christmas, Doing Repair Projects Themselves
CHICAGO (CBS) ―
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People hit by the recession are learning frugal habits -- such as shopping at thrift stores -- that they'll likely keep even after an economic recovery.
CBS
"Frugal Forever!" It's the new rallying cry for many Americans.
Nearly 80 percent of consumers say they've personally felt the impact of the Recession, so they're living with less.
CBS 2's Dorothy Tucker takes a look at the cutbacks some are making.
While the children in her home daycare sleep, Kim Starkey cleans. She's given up the luxury of a cleaning person in order to save $140 a month. Skipping her monthly massage saves another 75 bucks.
"That I miss deeply," Starkey said, laughing.
Eliminating luxuries? That's just one of the changes Starkey's family made when her husband lost his construction job and she lost half of her day care clients.
"We're just trying to be as frugal as we can," Starkey added.
Americans are forced to be frugal these days. According to a survey by Parade Magazine, 50 percent say they're having trouble paying their mortgage, and 80 percent are finding ways to do more with less.
Damion Lashell is among the first-time shoppers at the Brown Elephant thrift store, where sales are up 10 percent.
"Instead of buying a new item of clothes for $50, you can get several items of clothes for $20," Lashell said.
At a recent class on how to save money using coupons, CBS 2 surveyed 63 people and found that 92 percent are looking to cut back this Christmas.
""So it's really kind of getting into the mindset of how can you maximize the dollars that you have?" Ilenia Lutz said.
Our survey also found homeowners are saving money by dining out less, landscaping their own yards and -- like Starkey's family -- doing their own home repairs.
Starkey figures the family saved $800 by refinishing their own deck. They pocketed another thousand by repairing the shed. Sealing the fence added $200 to the family budget.
Spending time instead of money and giving up luxuries it's a big change for many Americans, and it could be permanent.
Starkey says even when their income rebounds, her family will continue to do their own repairs.
"Why would you want to give somebody $800 more to do something that took you a weekend to do?" she said.
There are some luxuries people have no intentions of returning to. The number one change, according to our survey: People are eating out less and plan to continue to do so.
FULL FRUGAL SURVEY AND RESULTS:
Question 1 (LIST 3 ITEMS YOU HAVE CUT BACK ON OR ELIMINATED TO SAVE MONEY)
1. Dining out 51%
2. Clothes/designer clothing 24%
Groceries/Food 24%
3. Movie theater/Rental company switch OR reduction 17%
5. Vacations/Travel 13%
6. Cable 10%
Question 2 (ESTIMATE MONTHLY SAVINGS FROM THOSE REDUCTIONS)
1. $100 - $200 - 26%
2. $50 - $100 - 20%
3. $200 - $300 - 16%
Question 3 (WHICH OF THOSE WILL YOU CONTINUE TO USE LESS OF OR DO WITHOUT WHEN ECONOMY IMPROVES?)
1. Dining out 33%
2. Clothes/designer clothing 8%
3. Cable 7%
Groceries/food 7%
Name brands 7%
Question 4 (ARE YOU USING COUPONS FOR FIRST TIME?)
Yes 19%
No 81%
Question 5 (ARE YOU USING COUPONS MORE OFTEN?)
Yes - 89%
No - 11%
Question 6 (HOW MUCH MORE?)
25% 13%
50% 17%
75% 34%
100% 36%
Question 7 (WHAT THINGS ARE YOU DOING YOURSELF NOW RATHER THAN PAYING SOMEONE TO DO IT FOR YOU?)
1. Cleaning house 15%
2. Cutting own hair 13%
3. DIY home
repair/improvement - 11%
4. Landscaping 10%
Cooking 10%
5. Painting 9%
Question 8 (DO YOU PLAN TO CUTBACK ON HOLIDAY SPENDING?)
YES 92%
NO 8%
A. (HOW?)
1. Using coupons/sales/rebates/promotions - 29%
2. Having smaller per person budget 22%
3. Buying fewer gifts 16%
4. DIY/homemade gifts 10%
B. (HOW MUCH LESS WILL YOU SPEND FOR THE HOLIDAYS?)
25% - 50% less: 26%
$200 less: 13%
$500 less: 13%
$100 less: 11%
$250 less: 8%
$300 less: 8%
$400 less: 8%
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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