I haven’t been shopping in months.
Months.
When I was much younger, all the way back in high school, that was the weekend activity. Eat breakfast and head to the mall. It was how my mother and I bonded during those tricky adolescent years.
But as I became older, I got less and less enjoyment out of binge shopping, and now the more the economy sinks, the less I even think about it as an option.
And I’m not the only one using my willpower to avoid Banana Republic. Consumers’ behavior is changing. Especially during the recession.
Those who can afford it are “ferrying their purchases home in unmarked bags,” and those that can’t are trying to see the best in a difficult situation.
“There is a newly forming society of people who are making the best of being laid off,” the Boston Globe reports. “They are rediscovering hobbies. They are greeting kids at the school bus. They are remembering what daylight actually looks like.”
Where consumers used to get their high-end experiences through shopping, they are now searching for value, opting for a McDonald’s coffee instead of Starbucks, Walmart instead of Ann Taylor, and time with family and friends over a shopping trip of any kind.
“Companies are having to consider their ‘value’ equation to try to serve the millions of consumers who either can’t afford premium experiences, or just don’t want them anymore,” the Wall Street Journal reports.
As a result, luxury is out and cheap is chic. “Not just for financial reasons,” one blogger argues, “but because ‘conspicuous consumption’ is no longer cool, smart, or fashionable.”
Indeed, when Deepak Chopra, author of Why is God Laughing?, appeared on Good Morning America to advise viewers on how to keep their spirits up in this economy, he acknowledged spending shame.
One viewer asked via Twitter, “How do we not feel guilty about taking a vacation when everyone around us is struggling? Of course we must be humble, but maybe we shouldn’t go?”
Chopra replied, “We have gotten into the habit of spending money we haven’t earned to buy things that we don’t need to impress people that we don’t like. So, get rid of that habit.”
“But don’t be afraid of spending money if you have it,” he continued. “When you take that trip, you’re giving employment to people who work in the airline industry. When you go to that restaurant, that waiter is going to get a tip. In fact, the more you circulate the money, the more you increase confidence and trust that everything is okay. Don’t overdo it but don’t hoard. Because when you start to hoard, you strangulate circulation. And the world works with giving and receiving.”
Moms especially seem to understand and relate, expressing the thought that “this is hard but, ultimately, it’s a good thing for my family — we are pulling together, spending more time together. It’s less about accumulating stuff. It feels more real.”
It seems the old adage that money can’t buy you happiness is true. And value, convenience and smart spending are the new golden rules.
What do you think? Has your shopping behavior changed during the recession? What are you doing differently? How are you spending your money and time?
Very intriguing post. I am a wife, mom, daughter, friend and GRANDMA. I have most definitely curbed my spending as of late for everyone but my 9 grandchildren, ages 8 months to 8 years. My theory is this: These precious little people did nothing to create the mess we’re in… so my consumerism has shifted from a random pair of fabulous shoes for myself or a dinner at a fine restaurant or another sweater for my mom to perhaps even a bit MORE spending on my grandkids. I buy them all lots of books. I buy them great puzzles and toys. I buy them computer games. I take them to the theater. I take them to museums and always get something at the gift store! And I help out my own kids with things like diapers and formula and wet wipes, etc. for my grandchildren.
I also have a circle of friends whom all have grandchildren. Some of these friends have made fortunes… but we all now have a great challenge ahead of us. We have made it fun to find restaurants that are fun but inexpensive. We love BYOB places. We entertain at home much more often. And we are loving it.
But the grandkids? In my world, this is where we spend!!
I am not much of a shopper to begin with, but I am definitely considering the things I put in my grocery cart more before tossing them in. I have also (gasp) been shopping at Walmart a bit, which is against the rules in our house, but it has saved us some dough.
@ Sharon – Thanks so much sharing your story. I can’t believe you have 9 grandchildren – they’re a lucky bunch! It’s fascinating to hear how you’ve shifted your spending as well. I too spend money on different things like a trip to the movies instead of buying clothing. And I’ve been spending much more time at home, but now that Spring has arrived I’m looking forward to outside activities as well.
@ Andrea – Thanks for the comment! I agree, I think a lot more at the grocery store about how I can stretch meals and I’ve even been using my shampoo and conditioner to the very last drop :)
I cut back on work and went back to school full-time (at age 33) in September, months before the downturn hit its peak. I was already cutting back on spending, because the moneys were no longer there. I was already enjoying spending less — having more time to pursue my goals has been fabulous.
Perhaps related to this, I lost 20 lbs. in the last year, continue to lose, and need a new wardrobe. Due to the downturn, there are fabulous deals on new clothes for someone like me. Yet I feel a bit of guilt for enjoying these small pleasures, knowing that they are due to someone else’s misfortune.
I have definitely changed my spending habits. I was unconcerned about our finances until the end of 2008, and then all the gloom & doom news stories started to affect me and my husband’s stress levels. We feel VERY fortunate that we both have jobs and our income hasn’t been affected, but our concern about the economy and what could happen has motivated us to find ways to trim our spending (mine mostly). The fun part for me is I feel much more comfortable resisting temptation these days, since I know everyone is doing it. I have felt less pressure – for whatever reason – to splurge, spend, and acquire. Maybe now it’s like “the Joneses” are clipping coupons too? Areas where I’ve trimmed my spending are grooming (haircuts and coloring) and trips to Target. I’m also not stocking up like I used to, and I’m paying more attention to what’s on sale. In general, I have been 100% better at not buying stuff “just because.” But I definitely feel the current environment is more supportive and is rewarding/recognizing thrifty behavior, whereas not that long ago, thrift wasn’t held up as much of a virtue. It was almost an oddity when times were booming. I think the best part is I feel happy knowing I CAN cut back and not feel deprived. I think before, I didn’t honestly think I could do without. It has given my self-esteem a boost to know I can save more and control my impulse to spend.
Good to have all sides of a story for a change! Yes, save what you can but also spend. That was the greatest problem about the Great Depression. People got scared and stopped spending money all together which added to the overall collapse. That is why I think that the “bailouts” should go to the people, not the companies. Let the people bail out the companies, everyone benefits from that!
I have recently started making a huge effort to save money. I just have not decided what to do with what I have saved! Money itself does not seem to be worth much of anything! I thought about investing but I have had the luck of buying high and selling low. So, for now I am just going to try and save it. Maybe I will try and make a little interest in it.
@heyfoureyes – I can definitely relate to feeling bad about spending occasionally. I recently went on a weekend trip to Florida and it seemed a bit wasteful but in retrospect, it was just what I needed to clear my mind. I appreciate you sharing your story, thank you! (And congrats on the 20lbs lost – that is awesome!)
@ Sheri – I LOVE your comment – I think that your ideas on comfort levels and thrift are right on and I didn’t even realize that was why it was easier for me until I read your comment. And it’s so interesting to hear where you’ve curbed spending – I’ve been doing many similar things. Your comment has given me a self-esteem boost, so thanks!
@ Tighten Your Belt – Great thoughts. I’m happy that you brought up the idea that we need to spend – at least a little – to keep things going. I’m sure saving money will be great for your long-term success, it’s great that you’re making that effort!
I am an embarrassed shopper. We have certainly tightened our belts as everyone has, which is more a product of our environment than our financial status. We are by no means wealthy, but are living in limbo and thus have very little debt, no house, and actually have been anticipating buying a house so the bulk of our cash is in a savings account, and wasn’t in the stock market. That said, we are buying less “crap” because everyone else is. But when we have seen a great deal on a big ticket item (ie 52″ tv at circuit city), we have a lot less hesitation than our peers to buy it. We are also going on vacation and have taken a higher level of luxury vacation because its now at a fair/reasonable price whereas last year at this time it would have been a ridiculous price. So we are taking advantage of the poor economy, but still doing it wisely. That said, we are related to a retired couple who retired early because they lived so frugally and had more than enough to last their life that is now needing to consider re-entering the workforce (after being gone for 10+ years). Its a lot of ups and downs and affects everyone differently. The best way to tread IMHO is to be sensitive to others situations. :-)
I’ve actually been shopping for things like clothes a lot more the past few months because of all of the great deals. My personal finances haven’t really been effected, but all of my favorite stores have been having huge sales or offering things like free shipping for online orders. It’s increased the value for me – I can get a lot more for $70 than I could a few months ago.
This is also in part due to the fact that I’ve lost a lot of weight and needed new clothes – the weight loss being related to not eating out, cutting out alcohol (expensive!) for the most part, and finding entertainment in free activities like running or playing frisbee with friends instead of going out for food/drink.
I have, however, been buying higher quality products – both for food and clothes. An extra $10 in groceries is a lot cheaper than a $50 meal at a restaurant, but can buy ingredients that make a home-cooked meal much more interesting.
Buying higher quality also results in getting a lesser quantity. Rather than getting three pair of new shoes that will all have to be replaced in a year, I might spend more money to get one well-made pair that will last a lot longer. It’s less conspicuous shopping, and it’s smarter, in my opinion.
For women I think shopping can be so very therapeutic. It is a stress reducer and a way we reward ourselves for a job well done or a date gone wrong. Shopping can help make up for that bad hair cut and is a must to help show off those 5 pounds lost. We shop as a pass time and as a social outlet. I know I have down sized my time “shopping” tremendously. I am more depressed about all the things I can’t buy and I’m frustrated about not enjoying my shopping time with friends. With all that said I have made strong efforts at turning to other mediums for my social connection and my free time filler. I’m posting my kids clothing on Ebay and I’m participating in Re-sales both as a vendor and as a shopper. I’m also finding more fun things to do with the kids other than going to the mall. But I still miss “shopping”.
@ Jill – Those are great stories and I love that you’re able to take advantage of some of the deals out there right now. Like Deepak Chopra said, I don’t think there’s any need to be embarrassed – we all have to contribute to the economy to fix it. I think the way you ended your comment says it all; have empathy for others!
@ Nicole – I read on Treehugger that that’s a common trend, that people buy more quality during times like these. And certainly that does seem to be smarter. I love expensive shoes especially, but they tend to last much, much longer as well. Thanks for the awesome comment and congrats on the weight loss :)
@ jewleryandgiftsbyrebecca – Ah, so true! My good friend and I were talking about the therapeutic virtues of shopping just the other day. She has a weakness for summer dresses and can actually feel her heart beat faster. Haha. I sometimes get depressed about not being able to have all the items I want too (for me, it’s design stuff though). You give some great tips to get around that though. Thanks!
My shopping routine hasn’t changed….neither for the weekly necessities, or the occasional trip to a department store. I already choose environmentally sound companies/items, and lean toward ‘generics’ on many things. Times like these help illustrate the need to have a budget, live within it, and to always try to save a bit from EVERY paycheck. You never know when you’ll need it……..and you’d be surprised what you can live without. Current standard is to have 8 months worth of your income saved ‘for a rainy day.’ And once you commit to a sound savings plan, you won’t miss the portion you save.
hmm… very thought provoking, as always. We haven’t been too affected (knock on wood) by the economy, but we’ve had other stressors such as our daughter was born 9 wks early 4 months ago, and there are financial challenges that we’ve had to tackle with that. So we’ve re prioritized. My husband and I ask, “Do we really need that?” We buy most groceries @ costco, we found a program to help pay off our debt (mortgage, car loan, student loans, cc) in less than half the time w/out changing our lifestyle (this doesn’t help much NOW, but long term we are going to be in a better place), buying kids clothes on sale rather than full price. But we are still allowing ourselves little indulgences like Starbucks..only now we get a tall instead of a venti, or we are using our espresso machine and buying the fancy syrup to make our concoctions. :) We’ve found Costco has a great liquor store and we buy wine in bulk ($3 a bottle isn’t bad for good wine!!) We’re a part of paperbackswap.com, so we order books and send our own rather than going to B&N. We use skin/personal care products that are concentrated so they last longer, but are still incredibly high quality.
So I guess we are making changes in some areas and cutting down in others. We still have cable, sill use our cell phones as home phones (definitely a gen x/y thing!!!) even though a land line is cheaper.
Great post Rebecca.
I think it’s awesome that people aren’t binge shopping these days – at the same time, a healthy level of spending is good (and in fact necessary) to pull the country out of the recession. I related to this post because I remember those teenage and college years when I actually could relate to someone like Rebecca Bloomfield because I was so fashion obsessed… now that I’ve gotten older clothes are just not as important – recession or not.
I would hesitate to say cheap is chic though, especially when it comes to fashion. I would still not buy clothes from Target because IMO they are made so poorly – and I guess don’t consider Ann Taylor and Banana Republic as high-end luxury, just middle class (especially with all the sales they’re running these days – amazing prices). I think Wal-Mart and Target are best for more every day products, like groceries, toiletries etc. – stuff that everyone buys about the same amount of even if it isn’t a recession.
Anyway, good job – this post reads just like it came from Modite the way it ties many articles together. I like it better than some of the other formats you’ve used at Alice so far, so I hope to see it more often on this blog.
@ Catawaba – There are several habits that I haven’t changed either because I’ve (thankfully) cultivated a few good habits! I am also loyal to certain products like you mentioned in the sustainable category, and that will probably never change either. Thanks for sharing your tips and for the comment!
@ Rachael – Congratulations on your new baby! It’s great to hear all the smart choices you are making and I appreciate you sharing your tips. I like how you balance finding value without giving up on the little things that make you happy. I think that’s the key to being successful in this economy!
@ Monica – Thank you for the kind words and sharing your perspective. I still love clothes, but I’m smarter about how I stretch my closet to create different outfits. We’re all being creative to stretch our money – whether that be for a sweater or shampoo. That’s where innovation comes in and that’s what’s really exciting.
I hate shopping the sale rack, but lately I have made myself do it. My fiance and I used to joke that we were every marketer’s wet dream. Now I am more hesitant to browse the front of the store. I know that if I wait, sometimes even just a week or two, what ever item I want will likely be on sale. My spending is down in general though and I make less trips to the stores (less temptation).
Overall, I think that it is good for us to not buy so much stuff. A viscous cycle can occur where people have more stuff than space, so they upgrade to a bigger space, only to fill it with more stuff. This recession is making us rethink our values and priorities, and for that I am thankful. I think we will emerge much more aware of what we buy, why we buy, how it effects us, and how it effects the environment.
There is some great practical advice in this article. I guess I was raised in the vein of this article though, as my family never spent extravagant sums on things we didn’t really need. Instead of taking vacations to Disney World or Florida, we went to visit family in Minnesota or spent a week at Devil’s Lake. My parents never drove “new” cars until I was probably about 16. Almost every video game system we ever had in my house growing my brother and I saved up for and bought ourselves. I’ve had a job since I was in seventh grade, and it was never anything glamorous growing up: washing dishes or running the fryer at a restaurant, or bagging groceries and stocking shelves at a grocery store. We rarely ate out at restaurants and my mom bought a lot of store brand food growing up as well.
I guess I’ve continued living a life similar to how I was raised. I drive a 12 year old car and buy groceries and household supplies at Woodman’s and Wal-Mart. I know that Wal-Mart is essentially a four-letter word in this city, but I am NOT ashamed to shop there, and I always have shopped there. Wal-Mart gives the customer what he or she wants: a good deal, and apparently no one has found a better way to do it since the company is so successful. As far as the whole argument about them treating employees poorly goes, my opinion is that the employees don’t have to work there. There are a lot of people out there who would be grateful for that job – especially those that grew up in a country that doesn’t offer the advantages and quality of life that our country does.
I’ve never been one to go out to eat a lot or spend money on stuff I don’t really need either. People at my work go out to eat pretty much every single day, and you figure they drop at least $10 or $20 a day eating out. Add that up over the course of a month, a year, and a lifetime. It’s no small sum. I also don’t see how an $80 designer dress shirt from a famous label is going to help you perform any better at your job than a $20 dress shirt from Kohl’s.
The country has seen this before; some people learned from the Great Depression and the crash of ‘87, but most didn’t. We’ll how many heed the warning this time around.
Our shopping has definitely taken a back seat. It’s partially due to the fact that we now have a child and just can’t go out and buy whatever we want, but it’s mainly due to the economy and the fact that I was laid off last fall. I can’t remember the last time I went shopping at the mall! I guess I just shop in my closet now :)
@ Megan – Buying off the sale rack is often easier these days. I love your observation about getting more stuff so you need more space and that cycle. It’s dangerous and I too am glad to hear that it’s starting to break. Thank you for the comment!
@ Patrick – That’s great that you grew up with so many positive habits that you continue to this day, and I appreciate you sharing your story. Certainly, finding what works for you and fits with your values is important. Finding a good deal and also a good value is important. Thank you!
@ Brooke – I can’t remember either! Love the idea that you shop your closet – I’ve been doing the same thing to try to come up with new outfits to wear – I didn’t realize how creative I could be ;) Thank you for commenting.
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