Frugal is the New Black

FRUGAL NEW BLACK is the While the U.S. economy is slowly regaining footing, the classic American frugality revived during the recession is still in vogue. Consumer savings rates have increased four-fold since 2005. And Americans aren't just foregoing vacations and home remodels; families are spending smarter on staples like gas, groceries and tuition. Consider the encouraging U.S. trends in consumer cost-cutting: CUTTING BACK COUPONS with $3.58 3.38 $3.78 3.2B 2009 2010 3.3 BILLION coupons redeemed for a total value of $3.7 BILLION. (That's 100 million more coupons redeemed than in 2009 and $200 million more in savings.) +20% 2007 2012 Coupon usage has risen by nearly 20% since the start of the Recession. There were 50 OFF! 2X MORE Google searches for "printable coupons" and "online printable coupons" in 2009 than in 2008. With coupons, a household of 2 25% $9.6K) SAVINGS adults and 2 children can save 25% on their yearly grocery bill. $7.2K (Based on $800 monthly grocery expenses, coupon savings come to $2,400 a year. That's $600 more than the family's 2008 stimulus check.) I DAILY DEALS DOSAGE Today, consumers can access 30,000 deals available from more than today 650 daily deals sites. x30,000 1/6 Americans use daily deals sites. S0S OFF! 50 OFF! OFF! OFF! OFF! 85% Out of these users, use the sites regularly. GROUPON Collective Buying Power estimated 83.1 MILLION subscribers worldwide. livingsocial 42 MILLION. estimated Companies are even willing to lose money in order to court the new frugal consumer: 26.6% 55.5% lose money. 17.9% of businesses report making money from break even. working with daily deals sites. GUZZLING less G AS 00000000000000 The recession coupled with soaring gas prices has resulted in the largest sustained decline in gas consumption in 16 years. Americans drove just under 3 TRILLION miles in 2010, less than in 2006. 2000 2010 In the first 6 months of 2011, 7.3B California used nearly 7.3 billion gallons of gas. That's down 1.7% from the same 1.7% period in 2010. And 3.5% less than the same period in 2002, despite adding 3.5% 1.8 million drivers. GOING GENERIC at a GROCERY STORE +44% 2008 2012 Since 2008, 44% more Americans are shopping at bulk grocery stores. 1/3. Generic grocery brand sells are up by Before the Recession only 15% 15% of grocery sales were generic brands. 20% Today shoppers choose generic brands 20% of the time. GROCERIES GROCERIES 75% 45% 2008 2012 Now over 75% of consumers shop with grocery lists to keep spending on track. (Before 2008, just 45% of grocery shoppers used lists.) SQUIRRELING MORE inta S AVINGS 5.8% 1.4% 2005 2010 On average, American saving rates are 4x higher than they were in 2005. Americans are also taking on half as much debt as they did $805 54% pre-recession. ($436 billion between Jan. to $436 July 2011 vs. $805 billion between Jan. to July 2006.) Pre-recession debt ratio 25 was $1.31 for every $1. Today's debt ratio is $1.16 for every $1. The 2008 downturn served as a reality-check for American families. And now, even couponing is cool again: 96% of consumers claim they'd still use coupons after winning the lottery. Hopefully, the consumer trend of borrowing less and saving more signals that frugality isn't just a fad. END BROUGHT TO YOU BY Promotional SOURCES: e7a094baa29a88.pdf ecession-hangs-on rless-037872/ consumers-alike/ g-savings-rates ucing-debt-income-ratio/n2Hb/ %24

Frugal is the New Black

shared by kthorspear on Mar 14
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Economists often consider drops in spending on necessities like food and gas as an indicator of consumer cynicism over the health and prospects of an economy, but vibrant frugality-minded online commu...


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