The Numbers!

I have been asking around finding out what items women splurge on. I separated the items into six categories to make it simple...

• Clothing and accessories: clothes, shoes, jewelry, purses
• Food and drink: coffee, liquor, soda
• Health and beauty products: makeup, shampoo, vitamins
• Hobby: books, movies, music, crafts
• Household items: cleaning products, candles, decor
• Services: manicure, pedicures, hair cuts/colors, gym services

graph by Charlotte Madsen

 Of the people I have asked about their spending habits and what items they cannot say no to thirteen named things that could be considered needs, nine named items that were health and beauty items or services, and only one said she had to have books. Reading is one of her favorite hobbies. For most the hobby items are probably the first to go when money gets tight, but in reality it is probably healthy to do things that make you happy to help relieve the stress that a tight budget can cause.

The category most of the splurged-on-items fall into is food and drink, followed by household items. It can be argued that these types of purchases are actually necessities. The one thing I found though, is that there are certain food items and household cleaning products that women will pay top dollar for the quality of name brand goods over generic brands no matter what the cost difference. This might also be due to the fact that an expensive bag of chocolates or an air freshener can be tossed into the cart at the grocery store, which is a place where we go to buy food. Food is needed for survival, so if an item can be part of the "grocery bill" it is not really luxury or excess.

 Health and beauty products and services like clothing, shoes, makeup, manicures, and even gym memberships were the second most popular types of desired items. Women like to spend money on things that help them look and feel pretty. Many women (including myself) feel better when they look good, so it is not surprising that keeping up on the things that make us feel pretty is what we are willing to spend money on.

Surprisingly of the nine who named health and beauty purchases as their splurges, only two said that makeup was the one thing they splurge on. In fact, I found that no matter how their spending habits have changed as a result of the economy, most women have not changed how they purchase their makeup. Women who never purchased much, still purchase very little and women who have always preferred certain brands, still purchase the same amount of those same brands.

My Theory:

When the economy is down, cosmetic purchases stay the same not because more women are buying small cosmetic items to satisfy their need to shop, which fills in the empty places left by women who cannot afford makeup anymore, but because women see makeup as such a necessity that we do not buy less or settle for the lower quality brands. Women do not actually change their cosmetic spending habits at all.

An Eye for Deals

Mandy Boyer is a mother with a two-year old daughter and a baby boy on the way. She is a teacher turned stay at home mom. Her husband is a full time student who is starting medical school in the fall. Although she grew up in a house where she never wanted for much, she and her husband have lived on a tight budget since the day they got married. She makes sure that her family sticks to their budget so that they can have everything they need. As a result, Boyer has become an expert on saving money.

“I get off brands, and have started couponing in order to get what I need,” Boyer said. Boyer frequently clips coupons from the local newspaper and scours the Internet for coupons and deals. She also shares her great deals, either by posting links on Facebook or emailing coupons to her friends and family. Her two older sisters even come to her on occasion for couponing advice.

photo by Charlotte Madsen

As cost conscious as she is, Boyer still has some shopping weaknesses. One of her weaknesses is eye makeup. “It's just my favorite. I can't go without eyeliner longer than a couple days, if that.” Cosmetics are not her only weakness though: “I always have to have name brand cereal. I try to find deals but if I can't, I get it anyway!”

Extreme Couponing?

I recently conducted a Facebook survey to find out just how many people are using coupons. With grocery prices rising and shows like TLC's "Extreme Couponing" becoming increasingly popular, I really thought that coupons were the new rage. Of the 24 responses I received, only four people admitted to frequently using coupons obtained from multiple sources. None of the four admitted to getting carts of groceries for almost nothing. It seems to be more of a way to save a little money that to a way to get free groceries.

graph by Charlotte Madsen

Nine people said that they do not use coupons at all. Two had no reason and one even said she should start using coupons. The most common reason not to use coupons was a lack of time. Most of those who responded have young children and many of them also have full time jobs. Clipping coupons can be like a full time job itself and most did not think that the savings was worth their time.

"I don't use coupons. Mostly because I end up buying stuff I don't need just because I have a coupon," said Lisa Harding, a full time school teacher with a teenage daughter.  Most agreed with Harding that it is hard to find coupons for products they normally purchase. 

Mandy Fisher said she refuses to use coupons because she finds them embarrassing. "I don't want to be that lady holding up the line because the checker didn't take a whole 20 cents off my bag of sugar," said Fisher.

Three people said they use coupons occasionally, but only if they happen to come across one for a product they use. One person said she does not use coupons but does take advantage of Walmart's ad matching program. Seven people who use coupons said they used mostly ones that a store they frequent sends to them in the mail or by email. Costco and Smith's were the most popular stores mentioned for these types of coupons and ads.

People are finding coupons everywhere! 

• junk mail
• newspapers
• fliers from restaurants
• in-store ads
• online

The most popular places to find coupons and deals was in the ads and coupons (Value Pak) sent in the mail and on the Internet. There are many websites out there that point out deals and feature coupons for popular stores and products. Here is a list of links to some good ones (thanks to Hayley, Amber and Sydney!):

www.dailygrocerycoupon.com

www.coupons.com

www.pinchingyourpennies.com

www.smartsource.com

www.thekrazycouponlady.com

www.grocerysmarts.com

www.totallytarget.com

Homemade Treats

Tricia Hughes is mother of three who recently quit her job to stay home with her children. Her husband works in construction, so the economy has had a big impact on their financial situation. Even though his job is finally steady again, she still clips coupons and looks for deals wherever she can.

In describing how things have changed for them in recent years, Hughes said, “We don't eat out nearly as much. I try to make nice dinners and treats instead of taking the family for a night eating out. I used to reward the kids with cupcake places or Farr's Ice Cream. Now we make ice cream sundaes at home or throw together brownies really quick.”

She has also started shopping at less expensive clothing stores like Savers, Kid to Kid and TJMaxx. “I can find name brand, quality clothes for lots less. Kids grow out of their clothes so fast anyway,” said Hughes.

Health and fitness have always been important to Hughes, so it is not surprising that the three things she will still pay for no matter what they cost are good vitamins, her gym membership and Oreo cookies. Even marathon runners need a treat every once in a while.

Generic Savings

A common money saving trend is the purchase of generic brands over name brand grocery items. USA Today recently reported that sales of store brands account for 28% of all food and drink consumed in the United States, which is 8% more than what it was just ten years ago. This is not surprising considering the amount grocery bills grow as families and children grow.

Generic brands are doing their best to keep up this trend, with colorful packaging, better tasting products and growing numbers of all natural and organic products, thereby giving names brands some competition. Brands like Western Family and Kroger seem to be growing in numbers on grocery store shelves. There are a wide variety of generic products mixed in with the name brand products. Shoppers no longer have to look on the bottom shelf for the less expensive products.

photo by Charlotte Madsen

Although all five Lynette Rogers’ children are grown, the recent decline in our economy has hit her close to home as well. She has not had to get a job outside the home, but she is on a tighter budget since her husband had to take a new job a few years ago.

Rogers has grown to like the generic cereal brands. “I try to buy generic brands of cold cereal instead of brand names. I never used to do that! And I have been pleasantly surprised about how it is usually just as good if not better than the brand name,” Rogers said.

She still has two weaknesses. The first is chocolate, which she always has in the house. The second thing she splurges on is her acrylic nails. “I have to have my nails done. I tried not having them done a few months ago and went back to natural, and it was crazy, horrible! That was the end of that little money-saving experiment,” said Rogers.

A Good Brew

photo by Charlotte Madsen

Heather Phillips, a working mother with twin toddlers and a 10-year-old step son, said although she is more frugal than she once was, the one thing she is willing to splurge on is good coffee. It is not unusual for her coworkers to see her walk in with a Starbucks or Beans & Brews cup in hand.

“I love coffee and I will buy the better brands over the store brands because the quality and taste is very different.” When Phillips makes coffee at home she prefers the higher end specialty brands over just plain old Folgers. Coffee is one thing she will never go generic on.

She has given up name brands of many products for the less expensive store brands. “I pay a lot more attention to where I spend my money and what extras I can do without.” She has started buying in bulk when possible, especially when it comes to essential items like diapers.

Phillips said her spending on cosmetics has stayed the same, if not slightly increased. She buys less expensive shampoo, lotion and razors, but makeup is another thing she will never go generic with. Although she only buys the drug store brands like Covergirl and L’Oreal, she has not changed which items or brands she purchases.

Smelly Stuff

Melissa Berrett, a stay-at-home mother of three, admitted that her spending habits have definitely changed. “I buy generic brands of everything. I used to always buy Kraft macaroni and cheese and now I buy Western Family macaroni and cheese, or instead of Viva milk I’ll buy store brand milk,” said Berrett.

photo by Charlotte Madsen

The two products she will still pay top dollar for are Gain apple-mango scented laundry detergent, because it makes her clothes smell good for a long time, and Glad’s Febreze scented garbage bags. “And Glade candles,” she added, “I like smelly stuff.”

photo by Charlotte Madsen

Berrett still buys the same cosmetics she always has, but admitted she has developed a new love of eye shadow. She said she has enough to wear about eight different color combinations. At $5 each, she probably could have bought a new outfit or pair of jeans with what she has spent. “A new pair of jeans you can’t wear every day. I can wear different makeup every day for the same amount of money,” said Berrett.