The Frugal Living Trend Continues, Whether or Not the Recession is Over

For most of my lifetime, frugality has not been seen as cool. Conspicuous consumption, the practice of spending money extravagantly in order to advertise wealth, has long been a part of American culture. Think luxury cars, and anything with the word "designer" in its name. During the past several recession-stricken years, however, overt spending has come to be seen as being in poor taste. For the first time I can remember, thriftiness is hip.

Here are a few indications that exorbitant spending is out and the "nouveau frugality"--a movement that values creative ways to save money, and frowns upon wastefulness--is in.

Media

These days, most people who use the Internet with any sort of frequency expect a lot of media to be free or extremely cheap. I'm one of them. Just today, I've used Twitter and Facebook, watched a video on Youtube, and listened to a podcast, all for free. With all of this readily available, the idea of paying for such media sounds more ridiculous with each passing year. Remember the rumors about Facebook becoming a paid service? They were totally unfounded, but people were furious. Of course, Facebook and other free services make money by selling users' information to advertisers, so it's a trade-off that not everyone thinks is worth it.

The same expectations exist for software and smartphone apps. With so many free, good quality choices available, paying an arm and a leg for Microsoft Word or Hulu Plus ($7.99/ month, with ads? COME ON!) seems hopelessly behind the times. As I've said before, check Get The Free Version before making any software purchases. (I haven't yet found a definitive list of free smartphone apps, but always ask and Google around to find out about alternatives to expensive apps.) The general sentiment behind all this is that people are now approaching pay services with the knowledge that there is, or should be, a free or cheap alternative.

Rise of Coupon Websites

Coupon sites like Savings.com have seen sales climbing steadily over the past few years. As Savings CEO Loren Bendele notes, while thriftiness was once equated with cheapness, it's now viewed as being savvy rather than being miserly. There's no longer any shame in searching out coupons before making a purchase. As more and more coupons become available online, consumers are increasingly adopting the "why not?" mindset.

As the online coupon industry becomes more and more profitable, Google is even trying to get in on the craze. Since their $6 billion offer to buy Groupon was turned down, they've been looking to acquire one of Groupon's competitors.

Social Conventions

This is purely anecdotal, but not insignificant: It feels more acceptable now to say things like "let's do something cheaper," or "I'd rather eat in tonight," than it did five years ago. Shopping for clothes at secondhand stores instead of at a mall now seems to have less of a stigma attached. Secondhand store sales, as a matter of fact, have enjoyed sales growth during the recession.

Most people probably have at least one friend that's unemployed or otherwise financially struggling. This statistic that I made up and assume is true makes all the numbers about unemployment and poverty hit close to home. Sure, the recession is technically over, but since so many people are still struggling, it feels inappropriate to call up your friends and ask if they want to take a drive out to French Laundry for dinner.

Despite strong sales during the holiday season, consumer confidence in the economy is still very low. In light of this, my guess is that the "nouveau frugality" won't be going away anytime soon. What do you think?