Being frugal isn’t the same as being cheap. It’s about learning how to prioritize your spending and saving money in ways that improve your quality of life and help bring about future financial stability for you and your family. And with 11.1% of Americans reportedly living in poverty — roughly 37 million people — living frugally is more important than ever.
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Learning how to live more frugally or changing your money habits isn’t always easy, but it’s often necessary. And for many people, especially those who grew up poor, it might even be second nature.
GOBankingRates spoke with Peter Niebling and Hunter Garnett, both of whom said they grew up without much money but are financially more comfortable than when they were younger. Here are the biggest frugal secrets they learned from childhood that still benefit them today.
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Buy Older, Used Vehicles in Cash
For Hunter Garnett, founder at Huntsville Personal Injury Lawyers, growing up in a lower-middle-class household with seven children didn’t leave much money to go around.
One frugal habit he learned and has continued to practice is to purchase older or used vehicles in cash, rather than relying on auto loans. This has saved both him and his wife money on financing costs and auto insurance.
“Until just a few years ago, my wife drove a 2004 Honda Accord. I still drive a 2000 Toyota Tacoma,” Garnett said. “Now, despite earning mid- to high-six-figures annually, we pay cash for used vehicles. This has helped us avoid paying interest on car loans. We’re also able to save substantially on automobile insurance.”
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Use Those Credit Card Rewards
For many people who grow up in poverty or live beyond their means, credit cards are a way to pay for the things their income can’t cover. In the fourth quarter of 2024, the average household credit card debt was a whopping $6,380.
But credit cards can be helpful when used responsibly.
Another frugal secret Garnett learned is to use credit cards for everything, but to pay them off each month before the interest charges kick in. That way, you can take advantage of any rewards programs without the high interest charges.
“[My wife and I] earn 5% on fuel, 3% on entertainment and 1.5% on pretty much everything else,” he said. “These rewards can really add up. After grad school, we lived an hour from our jobs to save money. As you can imagine, our fuel costs were substantial. During the first year, we earned about $800 in cash back, mostly in fuel rewards.”
Use It Up, Wear It Out
When you grow up poor, you can’t really afford to toss out your belongings just because they’re slightly worn down or no longer in perfect condition. For Peter Niebling, dealer principal at Redlands Mazda, this was one of the biggest frugal secrets he learned.
“Growing up without a lot of money taught me some thriftiness that’s stuck with me,” Niebling said. “Our family’s ‘use it up, wear it out’ motto was the main thing. That meant fixing and reusing stuff instead of just buying new things all the time — something I still do, and it saves me a ton of cash.”
Purchase Secondhand or Off-Brand Apparel
Buying gently used or non-luxury clothing items is another way Garnett and his family have learned to save money.
“We buy most of our clothing secondhand. EBay, Facebook Marketplace and Craigslist were usually where we found our clothing,” he said. “For exercise attire, we bought, and continue to buy, clothing from Sam’s Club. My wife still buys a lot of our clothes, especially nicer items, on eBay and Facebook.”
Don’t Spend a Ton on Gifts
Giving gifts around the holidays or birthdays can be a great way to show someone you care, but it can also be very expensive. And for those growing up poor, affording all of those gifts just isn’t feasible.
Garnett said that his household typically makes their gifts themselves to cut down on costs. His wife, he said, uses sites like Pinterest to come up with great ideas and then buys inexpensive or preowned items from Facebook or Craigslist to cut down on the cost of supplies.
“One year, we picked cotton in a field, bought wreaths from Hobby Lobby and made really nice cotton wreaths for all of our sisters and moms (there are 11 sisters),” Garnett said.
Learn To Budget Early
It’s all too easy to overspend, especially right after payday, around the holidays or when the latest and greatest new gadget comes out. But this can keep you from achieving financial stability or lead to greater financial hardship down the road. That’s why having a budget and understanding what’s necessary versus what’s not is so important.
“I learned how budgeting works and how to differentiate between what you need and want,” Niebling said. “I keep a strict budget, which helps me save money and avoid debt problems. That’s been huge for getting my finances stable.”
Don’t Eat Out When You Can Cook at Home
Growing up without much money taught Niebling the value importance of finding ways to cut down on food expenses.
“We ate at home a lot more than going out to restaurants, which saved dough but also meant healthier eating habits,” said Niebling about his childhood. “Even today, I’d still rather eat a home-cooked meal, and that’s kept money in my wallet and me in better health.”
Cut Out the Cable and Satellite
For families without much money, the cost of certain subscriptions — like cable television — can be more than they can afford. But even when money is no longer a major concern, the monthly cost of certain subscriptions simply isn’t worth it.
“We didn’t have any cable television subscription” said Garnett, referring to when he was growing up. Even now, his household doesn’t have cable or satellite subscriptions.
Use a Space Heater and Lower the Thermostat
High utility bills are a major issue for many households, especially during the winter when temperatures tend to drop. But rather than crank up the heat all throughout the house, Garnett and his wife learned to save money by keeping the thermostat set to low — 64 to 66 degrees in wintertime — and using a small space heater in their bedroom at night.
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This article originally appeared on GOBankingRates.com: 9 Frugal Habits I Learned From Growing Up Poor
