Cheap vs. Frugal

Hello Money Masters!

What do you think when you hear someone being described as “frugal”? Many people think it means “cheap”.  Both words do have a similarity in that they include the aspect of saving money. However, there IS a difference in their meanings and I’m here to tell you about it! So, sit back, relax and prepare to be enlightened with the knowledge of CHEAP VS. FRUGAL. Let’s begin with cheap…

 

 

cheap (ch-eep) adjective.

1. costing very little; relatively low in price; inexpensive

2. stingy, miserly*

 

 

The second definition is what we’re focusing on here because people can often be described as cheap. But is it fair? Are they being misjudged simply by being frugal? When I think of someone who is cheap, an image of Scrooge McDuck (you know, Donald’s rich uncle) comes to mind. When someone displays financial actions that are considered cheap he or she might:

 

• be reluctant or afraid to spend money on even the basic necessities

• deny themselves the comforts of life in order to hoard money or possessions

• save money at the expense of quality, value or time

 

An example of cheap behavior might be buying lower quality clothing when you have the resources to buy higher quality, longer lasting items at a higher price.

 

frugal (froo-guhl) adjective.

1. economical in use or expenditure; prudently saving or sparing; not wasteful:**

 

The idea behind frugality is economic; focusing on getting value out of a purchase without sacrificing quality. A frugal spender weight his/her resources against wants and necessities and makes smart, informed decisions about spending.  Frugal behaviors may include:

 

• assessing the best way to make a purchase or other expenditure

• having patience to figure out the best saving strategies

• prioritizing spending to ensure needs are met

An example of frugality would be ordering a less expensive entree or skipping dessert at a restaurant to ensure you had enough left to leave a tip for the wait staff.

 

 

If you find yourself making financial decisions that might be deemed as cheap, ask yourself if you are cheating yourself out of things you deserve or need just for the sake of holding on to more money. Don’t get me wrong, I’m not trying to discourage anyone from saving money (this is Helen talking, after all!) but trying to bring awareness to the balance between saving appropriately and spending wisely.

 

Blessings to you all,

-Helen

* **cited from dictionary.com