How many americans are frugal

getforfree · #1 (**permalink**) 07-29-2006, 05:00 PM

I was just wandering what % of the american populattion is frugal. Lots of people are in debt, going to all kinds of restaurants and intertaiment things, etc...

My Dh joking sometimes that if all shoppers would be like me, retailers would go bancrupt, but they are making money, that means, people are spending.

Does anyone have any data on that, or what do you think?

jodi · #2 (**permalink**) 07-29-2006, 07:28 PM

If it weren't for this board, I would think I was the only one

So I'm guessing it's a pretty low percentage.

Kris10Leigh · #3 (**permalink**) 07-29-2006, 08:26 PM

Ditto! I have a friend who is struggleing so much more than I am, but she just keeps spending! I hint about this website all the time and about how much information I get here, but she doesn't get it.

I also feel like most people in my life do not need to be frugal. But then I need to remember that many, many Americans are living a lie. There are many people in debt up to their eyeballs. They may appear to be doing well, but the reality is that they are not.

scrava · #4 (**permalink**) 07-30-2006, 06:59 AM

I don't think too many ppl are frugal. I bet the % is higher in the older generations, though.
Ppl my age and younger (30) don't seem too frugal at all!

Ima saver · #5 (**permalink**) 07-30-2006, 07:36 AM

I read just recently that the american savings rate is in negative territory. I didn't think any young people were frugal. I am glad to see that so many on this forum are, and are under 30. That is surprising to me. I just talked to one of our waitresses who is 20. She made $700 last week and spent it all. I am trying to talk them into opening roth ira's!

DivaJen · #6 (**permalink**) 07-30-2006, 08:00 AM

Anecdotal, but in talking with my niece yesterday (early 20's) she just kind of accepts that people are in debt, that it is a normal place to be and you go on with your life despite it. You have credit card debt, but you don't let it stop you from going to a concert/Hawaii/shopping/fill in the blank.

Don't know how indicative that is of her generation's perspective (other young 20's here want to give me hope?

). Growing up I know my family was way more frugal than anyone else I knew.

Ima saver · #7 (**permalink**) 07-30-2006, 08:14 AM

I was raised very frugal also. My mother worried about money constantly and I have always been a money worrier too! When i was 20, I saved every week for a down payment on a house, got it when I was 21.

Kris10Leigh · #8 (**permalink**) 07-30-2006, 08:25 AM

My husband and I are 31. He has a problem differentiating between what he grew up with vs. what he has. He wanted to move out of his parents' home and step into the same level life style. It's been hard for him to realize that it took his parents 35 years to get where they are. His philosophy on credit is that everyone has it and that we aren't the worst case scenario. Yet he wants to have a large savings and retirement plan.

I hate being in debt and always have. Two house payments and lost income got us where we are and I am still trying to dig us out.

Ima saver · #9 (**permalink**) 07-30-2006, 08:49 AM

Hang in there kris, you will make it!! I don't have many friends, but I honestly don't have any that are frugal. One pretends to be, she does a lot of flea marketing. But she also paid $150 for a pair of tennis shoes and $1000 for her bedspread! My bedspread was about $50 and came from penny's catalog. (Yes, I know I could have gotten a cheaper bedspread but it was a perfect match to the wallpaper border)(new house too)

Miz Pat · #10 (**permalink**) 07-30-2006, 08:50 AM

I had a shock the other day. I was talking to my nephew who is homeschooled. He is the oldest of six. I was trying to tell him to set aside money and get in the habit of saving now and he told me that if he puts money in the bank, when he applies for aid for college, they'll count savings against him.

Lordy - our whole culture is against savings!

T_I_N_A20 · #11 (**permalink**) 07-30-2006, 10:04 AM

I'm 17... Hehe... Personally, I know a lot of people at my age that are not frugal at all, so I do feel like I'm the only one who's saving money for nothing and my cousin who spend a lot of money due to going out a lot, always complain that I don't go out often and that I'm always talking about saving money whenever I can with her. I'm constantly pressure by my friends to spend money though... I wish I know someone who's like me. I'm in Canada by the way, you're talking about North America right?

getforfree · #12 (**permalink**) 07-31-2006, 02:48 AM

Today I talked to one of my friends who always complains that they live paycheck-to-paycheck. They make more than we do, but she spends way more than we do. She gets fancy hairdo every month (like $50 each), new clothes, Whenever I visit her, she always has something new in her house. It looks nice, but I would never replace perfectly good items when they are still useful and don't have major damages on them.

She never uses coupons, doesn't look at the store adds, and often ends up buying whole week food supply at the same store. When I asked her what is her food budget for a month, she said, she doesn't know exactly, but it can be about $700 (For only 4 people!!!)

When I asked her why she doesn't use grocery bags as trushbags, she said that the trushbags cost only a few $$ a month, and they are stronger and biger. So what, can't u take your garbage out more often and save a couple backs a month? Well, she is complaining, but doesn't want to do much about saving money.

Broken Arrow · #13 (**permalink**) 07-31-2006, 04:50 AM

I am in a similar situation in that I don't know anyone in real life who is frugal (except my mother).

Quote:

My Dh joking sometimes that if all shoppers would be like me, retailers would go bancrupt, but they are making money, that means, people are spending.

Well, I don't have any data on this, but I don't think retailers would go bankrupt. At least not all of them. Many would simply have to evolve their merchandise to fit the needs of the consumers. For example, no one is stopping brand name clothing outlets from making cost-cutting measures to offer greater discounts and "plain jane" brands.

More importantly, some industries will always be in business, especially in a financially conservative environment. For example, the banking sector should benefit more if more people saved. Other industries that sell essential goods and services should not be impacted either.

If anything, I'm tempted to say that frugality would serve our economy some good! Even though consumerism would be down for the short-term, it would also greatly increase our buying power, thereby strengthening overall confidence in our dollar.

At least, that's my opinion of it anyway.

Bookie · #14 (**permalink**) 07-31-2006, 06:31 AM

Actually, it would be amusing to watch the financial community's response to an outbreak of frugality on a national scale. it would be interpreted as a decliine in the consumer confidence index and a harbinger of recession. Share prices would fall as projected earnings estimates were trimmed quarter by quarter. Unemployment would rise with payroll trimming to reduce costs. Tax receipts would decline across the board, squeezing local and state governments that look to sales tax revenues.

Distress selling at every level would bring prices down, but consumers would delay major purchases in anticipation of further price cuts. The Fed would cut rates to encourage borrowing at every level. Frugal consumers would penalize savings institutions that followed suit by shifting balances in search of higher returns, thus putting pressure on the banking industry already facing mounting debt liquidation and idle reserves.

Trading pardners abroad would panic as American imports fell, wiping out markets on which they had built their hopes. Loan defaults around the globe would trigger financial panic. Billions in inflated asset values would simply disappear in a deflationary spiral.

Interesting to contemplate.

boefixepa · #15 (**permalink**) 07-31-2006, 08:55 AM

It's laughable isn't it....what our spending as a nation does...personally I'd like to see it happen as a choice rather than a forced issue.

itsamy9 · #16 (**permalink**) 07-31-2006, 10:10 AM

It took me a looong time to learn to live frugally. Still, I catch myself wanting desiring things that I just dont need. If I have lived with out this long...I dont need it now!

Ima saver · #17 (**permalink**) 07-31-2006, 10:27 AM

I have never wanted to do a lot of shopping or buy things that I can do without. I use to love to read and I was always buying books.
When we moved here, I could not get a job for almost a year and the job I finally got was working at mcDonald's making $3.15. The next time I went to buy a paperback book, I thought, it will take me more than an hour of work to pay for this book. I haven't bought but a few books since then.
I don't think that the majority of americans are frugal. If they are, I sure have not met any.

PrincessPerky · #18 (**permalink**) 08-01-2006, 06:44 AM

I am far from perfect, but I pay my bills on time, and nothing gets shut off..so when one of my friends comes wanting to know if I can help with her phone bill that just got shut off...I so want to say 'nope, you got it shut off so suffer, and enjoy the savings for a bit!'

I don't have a home phone, I do have a cell though, I don't have a lot of things cause Iw ant to be able to A. pay the bills, and B. eat out once in awhile (or whatever splurge) I can't see taking dollars a day to waste on something (like TV, though for somethat is their splurge) when I could save it up and use it for the renfest, or fried chicken when I am really in the mood (and I avoid it when not, sorry no I can't cook it, I can barely boil water here)

PrincessPerky · #19 (**permalink**) 08-01-2006, 06:48 AM

Quote:

Originally Posted by Miz Pat

I had a shock the other day. I was talking to my nephew who is homeschooled. He is the oldest of six. I was trying to tell him to set aside money and get in the habit of saving now and he told me that if he puts money in the bank, when he applies for aid for college, they'll count savings against him.

Lordy - our whole culture is against savings!

they will but he can get around it, put it in an account with his parents name if they are trustworthy...if

but your post and I htink it was bookie, talking about how if a mass frugality movement were to get in motion they would be all up in arms about a 'recession' and start pestering people to spend (like a few years ago when we were looking at a house, looking at lowered interest rates as the feds tried to onvince america to spend!

rob62521 · #20 (**permalink**) 08-01-2006, 08:09 AM

I don't have the hard data either, but look at the top of this screen and see the revolving personal credit card debt. I'm 45 and grew up having to be frugal. I spend money, but not just to get bunches of stuff. We plan our purchases. I do spend more on groceries because I buy lots of fresh fruit and vegetables because I figure it will help healthwise.

Very few of the young teachers I work with understand the concept of being frugal. In Illinois you have very little job security as a teacher until you get tenure that takes a minimum of five years, if you are lucky. Yet, I see these young people spending wildly without knowing if they have a job next year. One gal said she wanted to trade her SUV in because all her friends were getting new ones and she didn't want to be left out. It wasn't an issue of wanting to trade in for a smaller car, just she wanted a newer SUV.

We also have the benefit of a sick day bank. We can donate days and if people need days, they can request them. Two of our younger teachers planned to get pregnant, but then when they were pregnant, realized they didn't have enough sick days for their leave to get paid so they were asking for days and talking about how they didn't know how they could afford to have the baby without the pay. I know some folks who have unexpected children, but what about those who want the baby for the sake of the attention. They feel like they are entitled to anyone's extra sick pay because they chose to have a baby. Yet, they don't want to pay the days back when they come back to work. I think so many of the younger people don't plan ahead for anything and have "a false sense of entitlement." So many are, like kris10leigh wrote they expect to live the same lifestyle their parents have although it took them 35 years to reach it.