Be Frugal, but Not Cheap MONEY MATTERS
WITH DR. ANDREW LEE Dr. Andrew Lee is professor of English at Lee University. He also serves as a coordinator for Dave Ramsey’s Financial Peace University. He and his wife Esmerelda have three children.
“Y
ou’re such a cheapskate! Penny pincher! Scrooge!”
in my future Yard Sale). However, I highly value experiences
Many of us have either heard these phrases
and memories, especially with my family and friends. So
hurled at us or, alternately, have used these
when we take family trips, we pull out all the stops without
phrases when accusing someone else. Few people would want
pinching pennies because I had already planned these
to be labeled as “cheap”—it sounds so insulting. But some
expenditures in advance.
would embrace less critical terms like “frugal” or “thrifty”
3. “A cheap person values money. A frugal person
which may often be viewed as a compliment. So what’s the
values time.” Some people will drive an extra ten or twenty
difference between being “cheap” and “frugal?” Personal
minutes to buy gasoline at the station that sells fuel for a nickel
finance author Ramit Sethi has summarized some insightful
less per gallon, without realizing that the extra time spent and
ways to distinguish between “cheap” and “frugal”:
miles driven for this supposed “savings” has cost them much
1. “Being frugal is saving money. Being cheap is saving
more than they were trying to save. Or they will spend three
money at the expense of others.” Think of a time when you
weeks struggling to fix a leaky sink rather than call a plumber
were out at a restaurant with a group of family or friends,
for a fifty-dollar repair. There’s nothing wrong with DIY (do
and when the bill came, there was “that person” who kicked
it yourself), but there comes a point when the time expended
in seven dollars to cover his or her $6.99 meal, neglecting to
exceeds the dollar value of money saved.
account for taxes and tip. Or how about those people who
4. “Cheap people are always trying to get something
habitually leave a dollar or two as a “tip” for their restaurant
for free and often feel entitled or act offended or
server regardless if the bill totaled ten, twenty, or fifty dollars?
mistreated when they can’t get something free.” There’s
Or those who choose to ignore invitations to weddings,
nothing wrong with sometimes asking for a freebie (James 4:2),
showers, or graduations as a great way to save some money
but to live life expecting not to pay for goods or services that
by not having to buy a gift? Ouch—let’s not be like these folks.
most people are paying for, well, that’s neither realistic nor
People have long memories regarding cheapskates!
healthy. Some people believe that if they whine loudly enough
2. “A cheap person saves in any possible scenario, at any cost. Frugal people happily spend money on things they value.” Cheap people always go with the lowest price on
and often enough, they can get anything they want. These people should be avoided. The previous points all boil down to this: “cheap” people
anything, while frugal people cut costs on things that aren’t
think short term while “frugal” people think long term. Frugal
important to them, while spending freely, even lavishly, on
people don’t save money just to save money; they have longer
things they care about. It’s simply a matter of knowing what’s
term goals like saving for retirement or funding their kids’
important to you and then allocating your financial resources
college or donating to worthy causes, and they realize that
accordingly. Personally, most luxury consumer goods are not
a dollar saved on expenses can help meet their goals. So be
high on my list of priorities (I inevitably imagine these items
frugal, not cheap!
10 // August 2020
