With Americans spending 14 percent of their household budgets on groceries, “couponing” has gained in popularity. More than 660 million coupons were redeemed in the first quarter of 2015. STAFF PHOTOGRAPHER ERIC SUCAR Saving money never goes out of style. For the wealthy and the not-sowealthy, pennywise practices can go a long way toward spending less.
“It’s important to save because it gives you a framework. People are looking for steps to take,” Barbara O’Neill, a Rutgers University professor and author who specializes in financial resource management, said.
Having a financial goal gives direction and provides motivation, O’Neill said. She promotes a “stepping down” program whereby individuals are “not giving something up, but are finding a lower price.”
If one is buying pancakes, for example, there are a few options: At the top step is the most expensive choice — buying pancakes at a sit-down restaurant; a cheaper option is purchasing pancakes at a fast-food restaurant; another step down, saving more money, is buying frozen pancakes at the supermarket; and the least costly way to go is making pancakes at home from scratch.
STAFF PHOTOGRAPHER ERIC SUCAR “Bottom line — ‘stepping down’ provides a variety of purchase options ranging from the very costly to the most frugal,” O’Neill said. According to a recent survey by the U.S. Bureau of Labor Statistics, Americans spend approximately 14 percent of their annual budget on food. At that rate, it is costeffective to pay attention to ways of saving money on groceries in a household budget.
O’Neill and colleague Kathleen Morgan, a Rutgers University associate professor and chair of the Department of Family and Community Health Sciences, offered a few tips for saving money at the grocery store. The experts say one should know how much is being spent on food each week by analyzing the receipt; plan every shopping outing by using a list and sticking to it; buy generic labels over brand names, especially on basics such as sugar and flour; be aware of items at the end of aisles, as they are displayed to entice shoppers to make additional purchases; buy fruits and vegetables in season; and do not use a credit card to purchase food, because the interest will increase the cost.
Jeanne Colleluori, spokeswoman for Wegmans, also advises that using a list will save money.
“Shop with a list of exactly what you need, and stick to the list. Don’t make impulse purchases,” Colleluori said.
She said Wegmans offers customers thousands of discounted items sold in large quantities that a family can use in a reasonable amount of time without creating waste.
“Customers can save an average of 30 percent when purchasing a Wegmans family pack product,” Colleluori said.
The use of coupons — or “couponing,” as it has come to be known — offers another way to save, and is now a cottage industry. More than 660 million coupons were redeemed in the first quarter of 2015, according to Inmar, a North Carolina-based company that operates commerce networks. These coupons for both food and nonfood items were distributed digitally and on paper.
Coupon use is a popular way to save on food bills, according to Santina Stankevich, spokeswoman for ShopRite. Although paper coupons are used by many customers, digital coupons that load directly to a shopper’s card offer additional savings, she said.
“It’s about providing options to save as an added bonus to our customers,” Stankevich said.
For Cindy Livesey of Lincroft, couponing became a way of life — and a career — by necessity. When her husband became unemployed about seven years ago, Livesey analyzed the budget and looked for ways to cut costs for her family of five.
“I was shocked to find out how much I was spending on groceries,” Livesey said.
She took action and went from being an occasional coupon clipper to a serious couponer.
“I cut $11,000 off the grocery bill in one year,” Livesey said.
Through her website, www.livingrichwithcoupons.com, Livesey is able to share her knowledge and strategies for saving on groceries.
She recommends following four steps to get started: Obtain both printable and insert coupons; use them in combination with a sale; know a store’s coupon policy; and stock up on items when they are at their lowest prices.
“It’s empowering to stockpile. You control what you are paying for your groceries,” Livesey said. One of her more memorable savings achievements came during an appearance on “The Rachel Ray Show,” when Livesey met a difficult budget challenge.
“I shopped for a Thanksgiving dinner for a family of four, spending less than $5,” Livesey said.
When making a purchase, people like to feel that they are getting a good deal and beating the system, Deborah Wagner, a licensed psychologist from Ridgewood, said.
“This helps them feel that they made a responsible purchase,” Wagner said.
When resources are limited, people may resent having to spend hard-earned money on necessities, wishing instead to have available money for luxuries and other fulfillment, Wagner said.
“In these situations, saving money becomes much more significant and enjoyable,” Wagner said.
Saving can also be a competitive sport, whereby “the thrill of finding a great deal is a reflection of their competence at the sport of bargain hunting,” Wagner said.
Thrifty spending habits can also be extended to clothing, which takes up about 4 percent of the average household budget, according to a Bureau of Labor Statistics survey.
Consignment stores offer shoppers secondhand clothing at a reduced price.
Adele R. Meyer, executive director of NARTS: The Association of Resale Professionals, estimates that the resale industry is experiencing 7 percent annual growth rates and $12 billion in annual sales.
“People like a bargain and like the uniqueness,” Meyer said.
In general, she said, the cost of clothing in resale shops is one-third to one-half less than if purchased new.
Melissa Mellon, media and marketing coordinator for Greene Street consignment shops in New Jersey and Pennsylvania, said secondhand shopping is not just “economically sensible” — it contributes to sustainability.
“If you have quality items, it feels so much better to consign than it does to toss,” Mellon said.
O’Neill’s “stepping down” concept also works with clothing.
“Steps of spending, from top to bottom, might include shopping at department stores, discount stores, factory outlets, consignment stores and thrift shops, flea markets and garage sales. Again, the more steps one goes down, the greater the realized savings,” O’Neill said.
She recommends that individuals “convert consumption of goods into labor,” meaning how many hours of work equal the cost of a purchase.
“With money, meet yourself halfway,” O’Neill said.
“Bargains provide a rationalization to purchase something that someone might otherwise feel guilty about buying,” Kit Yarrow, consumer psychologist from Golden Gate University in San Francisco, said.
In addition to food and clothing purchases, an informed consumer can implement ways to save money at home on utility bills.
“[The customer’s] knowledge is most important,” said Ron Morano, spokesman for First Energy Corp., which owns and operates Jersey Central Power and Light.
He advises customers to review “More Than 100 Ways to Improve Your Electric Bill” at www.firstenergycorp.com. The brochure outlines tips for saving money and highlights the following: Reduce electricity usage for lighting by 75 percent by replacing incandescent light bulbs with compact fluorescent bulbs or light-emitting diode (LED) lamps; reduce monthly cooling bills by 2 percent by raising the thermostat by 1 degree in the summer; and reduce monthly heating bills in the winter by 3 percent by lowering the thermostat by 1 degree.
New Jersey Natural Gas also outlines ways to save at www.njng.com. For example, since water heaters make up about 14 percent of utility bills, the company recommends that customers set their water heaters at 120 degrees to reduce costs. Turning the heat down 10 degrees at night or when the house is unoccupied saves 20 percent, according to the company website.
Bargains add to a “feeling of mastery and control in the minds and hearts of shoppers,” Yarrow said.