(Photo: Rambis, Flickr.com)
Call them what you will — tightwads, cheapskates, penny pinchers — they’re hot again. Back when more was more, and the Dow was dizzying, skinflints were as endangered as the expense account is today. Now, in an economy where excess is the new tacky, frugal fannies everywhere are having their day.
Neal Templin is a tightwad. Just ask him. He chronicles all the ways he doesn’t part with his money — and all the lessons he’s learned in the process — in a Wall Street Journal column called, appropriately, Cheapskate.
This hour, On Point: Impervious to the impulse buy — and not picking up the check. Confessions of a skinflint.
You can join the conversation. Are you a proud cheapskate? What about the flipside — when is spending the better choice? Tell us what you think.
-Jane Clayson, guest host
Tom Ashbrook is on vacation this week.
Guests:
Joining us from New York is Neal Templin, personal finance editor of The Wall Street Journal. He writes the Journal’s weekly Cheapskate column.
From Essex County, N.J., is Clarissa Templin, Neal Templin’s wife, the long-suffering spouse of a cheapskate.
And from Philadelphia, we’re joined by Scott Rick, a post-doctoral fellow and lecturer at the University of Pennsylvania’s Wharton School. He’s co-author of the paper “Tightwads and Spendthrifts,” examining the emotional and neural underpinnings of spending money. See also, “Are You a Tightwad or a Spendthrift? And What Does This Mean for Retailers?,” an article from Wharton School Publishing on Rick’s work, and the spendthrift-tightwad scale he developed with colleagues to measure “individual differences in the pain of paying.”
Tags: Economy, money, personal finance
Hello,
Neal is not a cheapskate…he is normal. This is how everyone should live…really thinking about what you buy, even thinking carefully about your splurges!
Posted by Kathy (Chelmsford, MA), on February 17th, 2009 at 11:20 am ESTA cheapskate knows the price of everything and the value of nothing.
One of your callers mentioned that the men she knows are interested in getting the largest quantity of something for the least amount of money. Women, she said, are more interested in finding items of quality for a reasonable price.
This statement rings true with me. I’ve seen it in action, repeatedly. Even living, breathing people are classified as items for purchase based on “how many can I get, real cheap, use up and wring dry, before I have to get a new batch?” Welcome to America! We call it “cheap labor”, here, guys.
Posted by Mari McAvenia, on February 17th, 2009 at 11:42 am ESTOne thing missing from this conversation is the big picture question, “Why are we doing this?” Saving money for its own sake is greed, if money is our final goal. Supporting our family and ensuring our future is a better goal. Better yet, let’s save money so that we can live on less and use our time, money and energy to help others.
Obviously, our spending habits in this country need to change. We have been self-indulgent and materialistic. However, it is more important that we change our character than just change our habits. If we change our habits and remain greedy, we haven’t really changed.
Posted by Emily Bathan, on February 17th, 2009 at 11:44 am ESTI agree with Kathy, conscious spending is common sense. We are the most spoiled wasteful culture on the planet, advertising execs and our govt have created a generation of mindless zombie consumers.
Posted by Gus, on February 17th, 2009 at 11:45 am ESTHi! I’m Becky from Burlington, VT – I LOVE saving money and recyling & re-using. (plus it is Great for the environment)
My husband & I now are on the same page now! It took him 8 years of marriage to begin to take his own lunch from home – and his diet is a little better as a result!
For instance, last week he wanted a strap to carry his skies & ski poles together. It was $15 to $35 online, so he went to the hardware store and bought nylon straping for 6 or 7 dollars and I sewed him up a perfect replica! We have 4 in our family, 50% saved really adds up!
I often cut up old dresses of mine and make cute shirts for my daughters, curtians to napkins (turned out great!)…
On the Costco point – I don’t belong – My friends do but I save more money buying items on sale at regular stores.
Posted by Becky Jacunski, on February 17th, 2009 at 11:52 am ESTA fascinating point was made in the show that frugality is correlated with general anxiety level. Since penny pinchers and spendthrifts have a hard time living together, can we generalize that and hypothesize that worriers and non-worriers should have a hard time living together?
Posted by Bob in Boston, on February 17th, 2009 at 2:00 pm ESTWhat I didn’t hear from the conversation was any sense that Neal and his wife planned economies together. Surely it’s one thing for the two of them to sit down and decide to go to inexpensive motels so they could save for retirement, or buy a house, or whatever. It’s another thing completely for Neal to decide to only go to Motel Six’s in spite of the fact that his wife resented it. (She said they had a miserable trip). I think the price tag for doing anything that erodes a couple’s closeness and feelings of value for each other is way too high.
I heard the same refrain when Neal talked about giving his wife the finances to do so she’d learn about being careful with money. Even if this was true, surely a loving husband would rather say he gave his wife the finances to do because she did such a great job, and he was so grateful for her help.
Posted by Mary in Boston, on February 17th, 2009 at 2:11 pm ESTNeal’s comments about Costco are right on the mark. We stopped going to Costco because we were buying a lot of mediocre pre-processed food in larger quantities and just consuming it faster. Now we only go there occasionally and only for specific items. We’ve stopped buying pre-prepared items (like pizza and chicken tenders etc) and make these ourselves for a whole lot less money…and better flavor.
Posted by Arthur, on February 17th, 2009 at 2:47 pm ESTI lived on less than $10K for a decade, and now have an upper middle class income. I can afford lots now, but find I appreciate less. Once the basics of food and shelter are taken care of, money becomes an emotional reality.
Posted by Lucy, on February 17th, 2009 at 3:13 pm ESTreally enjoyed this segment of the show today.
while this economic collapse is and will continue to be painful it does perhaps offer a welcome breather for some. we’ve been on such a consumerist treadmill for so long…..and it’s basically killing us and our world. all this talk about the stimulus and rebuilding our economy…..perhaps we might ask what exactly we want to “rebuild.” this slower economy gives us a chance to recalibrate what’s important and reconsider ways to move forward sustainably.
no?
Posted by jim jinks, on February 17th, 2009 at 4:29 pm ESTWhat about Aldi? I applaud the critique of Costco, but I was surprised Mr. Templin’s recent grocery article did not mention Aldi. I shopped there exclusively while living in Germany and when they arrived in the US I changed my habits here. You cannot match the quality or price anywhere. And the limited selection prevents impulse buying… at least somewhat.
PS. The Aldi brothers also own Trader Joe’s.
Posted by M., on February 17th, 2009 at 10:29 pm ESTYou here is all the time from the various big news outlets. Why save now when spending will “get us out” of the economic hole.
I think they are all missing the real question. Do we want to go back to such a consumption driven system? Do we need to have all these things in our homes that just sit around and take up space?
Why do we need to go back to a consumption based system?
Posted by irongamer, on February 17th, 2009 at 10:59 pm ESTPeople, we need only follow the examples of our leaders. Avoid paying taxes (multiple cabinet nominees) and live rent free off of supporters (Rahm Emanuel.) You won’t save that kind of money shopping at Aldi or only buying generic beer.
Posted by Majawill, on February 17th, 2009 at 11:18 pm ESTI drive a pretty beat up ‘91 Honda which gets me 32 mpg.
Posted by Jeffrey McMeans, on February 18th, 2009 at 1:49 am ESTAs all my friends and co-workers refinanced time and again their homes and took trips, bought a boat or another car, I continued paying my old mortgage, but paid it off 2 years before I retired.
I am not a spendthrift, but dress myself and my home and kitchen in things I have found in thrift stores. And fantastic things, too. I have an eye that finds the deals.
I sleep great at night
I have always saved money and find not pleasure wasting hard earned wages. It’s a good way to live.
Posted by David, on February 19th, 2009 at 5:34 am EST