Employed or not, people are facing some of the most trying economic times in decades. Where can families turn for sound advice on budgeting and spending wisely, and are there simple steps people can take that will help them cope with the recession? In a recent interview, Kathy Sweedler, a consumer and family economics educator with University of Illinois Extension, considers these and other topics.
How can people hurt by the recession shop wisely at the grocery store?
Americans spend about 13 percent of their income on food. It makes sense to look at your buying habits and see if there are changes you can make that won't take too much time or leave you unsatisfied. Here are some tips that I think make a difference:
- Plan your menus ahead of time. Sit down once a week and plan your major meals. Look at the grocery store ads for weekly specials. I find this helps me think of things to cook too. If something is on sale that you use frequently and stores well, then buy extra.
- Next, take your menu plan and make a shopping list. A shopping list lets you shop quickly and you're likely to spend less in the grocery store.
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You may also want buy store brands instead of name-brand products. Many people find they like the store brand. Also, be aware of the cost of convenience food. Yes, it's nice to buy vegetables pre-cut but what is the cost difference?
Are there U. of I. Extension resources that can help people trying to manage family budgets?
Extension's mission is to help people make informed decisions about many topics, including finances. We recognize that this unusual economic time requires a special focus. Thus, we have developed an initiative to provide help.
The new Getting Through Tough Financial Times Web site provides timely resources, links to related money-management resources, and a listing of events throughout Illinois. It's a one-stop shop for all University of Illinois Extension resources that will help you if your financial security is threatened. Currently, the Web site is organized around such topics as: Assessing Your Financial Situation, Setting Spending Priorities, Talking With Creditors, Saving and Investing in Turbulent Times, and Communicating Under Pressure.
Another Extension Web site, More for Your Money - Using Your Money Wisely, helps people manage their budgets and credit. It's a free, secure Web site with interactive worksheets so that people can input their financial information and set-up a budget that works for them. The website also has strategies to pay off debt.
With tight budgets, families are looking for ways to save money such as putting off vacations and cutting back on entertainment. Is that a good idea?
Before you give up on everything that makes your life fun, consider "stepping down" your expenses. Stepping down expenses means changing the way you do something rather than giving it up. For example, rather than skipping a cappuccino with a friend instead "step down" the cappuccino to a cup of coffee with a friend -- you'll save on calories too.
While skipping cappuccinos and lattes may be the cliché of how to save money these days, the "step down" idea can be applied to many aspects of your life. For example, don't cancel a date to the movies. Instead, rent a DVD and host a movie party at home.
Rather than cutting out a family vacation this summer, step down your plans to somewhere closer (lower transportation costs) or a few days shorter or camping rather than hotels.
A related idea is to take a close look at how small expenses add up when you repeat them regularly and frequently. For example, purchasing lunch five days a week at $8.00 each day, adds up to $2080 in a year. Step down your lunch costs and pack a lunch three days a week; you can save over $1000 in a year.
To see quickly how small changes can add up, visit the Plan Well, Retire Well website and read the section on Start Saving. The calculators can help you find ways to step down your expenses while still enjoying life.
For more information about saving money in these tough economic times, University of Illinois Extension has a blog, Plan Well, Retire Well - Saving and investing your money. This blog features timely, research-based commentary on the economic situation. Recent blog topics include "How's your asset allocation? Time to rebalance?" and "What should you do with your tax refund?"