SUMMER 2009 EDITION
MONEY»
Stretching your dollars
Valerie Mosley/STAFF
From left, Dre Young, Brian Carter and Jon James browse CDs at Slacker's on July 16. They like to shop at Slacker's "...Because it's cheaper. They sell used or you can come in and trade," Carter said. Store Manager, Kate Passis, said lately more people are coming in with items to trade, but the store only gives cash for select items.
COLUMBIA — Susan Ausfahl knows what to do when it comes to saving money.
The Columbia resident of 25 years keeps a running grocery list so she knows what she needs before she steps into a supermarket.
Tips on Saving Money
- Plan a meatless day each week. Meat is one of the more expensive foods in our diet.
- Plan how to use leftovers. Millions of dollars are wasted each year on uneaten food.
- To get more wear from shoes, do not wear the same pair all the time.
- Get to know the gas stations in your community that offer the best values.
- Organize errands to avoid unnecessary trips.
- For furniture or appliances, read the classified ads in the newspaper or try an auction, garage sale or secondhand shop.
- Cut down on cleaning supplies by buying all-in-one cleaners.
- Turn off the air conditioning and open windows in temperate weather.
- Read books and magazines from the library.
- Stay away from malls. It's too easy to spend money on impulse.
- Don't carry more money than you can afford to spend.
Source: Better Living magazine
Ausfahl maintains a garden where she grows tomatoes, cucumbers, zucchini, squash and peppers. She also tells her kids "no" when they ask for something that's out of her budget.
When it comes to clothes for her children, she heads to Walmart or Target. Hand-me-downs also save her money on clothing, she said.
When asked about the impact of the recession, Ausfahl said, "It has made us more aware of what we're doing and what's going on around us."
Ausfahl and many other Columbians are looking for ways to stretch their dollars during an uncertain economy. They use coupons, ride bicycles and rent movies for cheap entertainment. They also shop sales and avoid high-priced brand names.
The ways you can make your dollars stretch are unending, but you have to do a bit of research to find them.
The Deloitte Consumer Spending Index reported that spending rose in June after falling for four consecutive months. The savings rate rose to 6.9 percent in May, the highest in 15 years. When dollars aren't spent, that means fewer sales exchanges and lower revenue for struggling businesses.
Deloitte also reported that unemployment claims are up 77 percent from a year ago. And even though housing prices have dropped, there is a lack of mortgage financing from the banks. The big picture overall is that people are saving more and spending less.
Galina Rasputina, who works in the medical field, depends on coupons to help her overall grocery bill. Rasputina added she has been working more hours to weather the recession.
Abbey Trescott said she saves by shopping for items that are cheaper than brand names.
She also helps her budget by doing less shopping and watching how much she spends when she goes out to eat. Trescott said she doesn't buy a new outfit every time she goes out. Instead, she just wears one that she has in her closet.
When asked when she thinks the recession will end, Trescott said, "We'll pull out of it. Who knows when, but we will."
At MU, personal finance associate professor Robert Weagley said he has seen an increased demand for his knowledge and expertise. Consumers are looking for any new and valuable information that could help financially and give them more confidence about the future, he said.
Weagley, who is also the department chair, said he has received a number of invitations to speak at seminars and on television.
"There is a wave of public interest in personal finance and financial literacy, there is no doubt about that," he said. "The problem is that people are borrowing too much money and not saving enough ... People wait for the crisis; then they want to react."
The financial planning department has published a magazine titled Better Living that lists ways to save money in areas such as food, clothing, fuel and entertainment.
Weagley does think the recession will end, but "we'll never go back to the booming economy we once had," he said.
Thomas Higgs recently moved to Columbia from Dallas hoping to find a better life but said he is caught in the web of the economic downturn.
Even though he has a car, he often travels short distances on his bicycle. He said he shops mainly at Aldi, the discount grocer on Business Loop 70, because he knows he is going to save money there.
"I'm just trying to make it," Higgs said.
Steve Fisher of Fayette feels the same way. Even though his wife tries to catch things on sale, he said she ends up spending more money. Other than groceries, the couple is mainly trying to save money on gas for the car.
"The recession is definitely not going away," Fisher said.