ASU Research E-Magazine: Are You Frugal, Or Just Cheap?

When John Lastovicka set out to understand frugality, he discovered what once was a major part of day-to-day American life is long gone. While some people still adhere to grandma’s notion of “waste not, want not,” Lastovicka found that only about 15 percent of modern Americans could be described as frugal.

“The idea of frugality has become alien to many people,” says Lastovicka, an ASU professor of marketing. “We’re currently living in the best of economic times and in the lap of materialism. Buying and acquiring newer, bigger, and more technologically advanced consumer products powers our culture.”

It wasn’t always this way. “Look back at our country’s history; frugality was once dominant.”

Lastovicka teamed with Indiana University’s Lance Bettencourt and ASU doctoral students Renee Shaw Hughner and Ronald Kuntze. They conducted a six-study program to empirically understand and measure frugality. Their findings were published in the June 1999 issue of the Journal of Consumer Research.

Empirical frugality studies echo the wisdom of the world’s religions, Lastovicka says. “Happiness in life is not determined by how much is purchased at the shopping mall, but by satisfactions received from family, leisure, personal and spiritual growth, and friendships.”

Lastovicka and his colleagues view frugality as “a lifestyle trait reflecting disciplined acquisition and resourcefulness in product and service use.” They define frugality as “sacrifice in denying a series of short-term purchasing whims and industriousness by resourcefully using what is already owned or available for use.” All of this is done in service of achieving long-term goals.

In other words, do as your grandparents might have said, “Use it up, wear it out, make it do, or do without.”

“And if you do have to buy something, buy carefully to satisfy a real need, not just a whim or desire to ‘keep up with the Jones’s,” he says.

Lastovicka found that frugal people are less materialistic and susceptible to impulse buying than the frugally challenged. They tend to be self-disciplined, and are more value and price conscience.

“They are conscientious people in this respect,” Lastovicka says. “It takes a lot of work to be frugal. These are people who realize that all those nickels and dimes do add up to something substantial.”

But surprisingly, being a frugal person doesn’t necessarily mean clipping coupons.

“Coupons are a selling tool often used to promote overpriced convenience goods. Only the less frugal are manipulated into spending more,” he says. “The more frugal readily recognize that just because an item is offered with a price reduction, doesn’t necessarily make it a worthwhile purchase.

‘Penny-pinchers’ use products and services resourcefully by stretching out what they already own. This can range from timing showers and eating last night’s leftovers, to washing and reusing disposable zip-top plastic bags.

Lastovicka was not too surprised to learn that frugality — what he calls a “pervasive consumer trait”— is not as prevalent today as it was in yesteryear. However, he was taken off-guard to learn that behavioral researchers have ignored the subject.

“Understanding and measuring frugality is important in terms of explaining how consumers use goods and services, and it may spell out a cogent aspect in understanding a general satisfaction with life,” he says.

“There is much, much, more we need to learn about this lifestyle trait.” Lastovicka adds. “After all, only 15 percent of Americans are frugal.”

Not all Americans benefit from the current economy; the gap between the rich and poor is growing.

Lastovicka speculates that many recent millionaires achieved their long-term goals with a healthy dose of frugality. In contrast, the non-frugal argue that “life is too short” and too often indulge in the sleek car, trendy vacation or big tip to impress a date. In the end, the less frugal are less likely to reach a long-term goal.—Lynette Summerill