Media Coverage for True Frugals

Our study on the new frugality in America, commissioned by our client First Command Financial Services, has been picked up by the media recently in their continuing coverage of the subject (CNN story here; CSM here.). The question of whether frugality will last or whether it’s simply a recession strategy that will fade as the economy becomes more stable is top-of-mind for many people, notable marketers who are trying to figure out how to figure frugality into their future strategies. Our study hasn’t been published yet, but from what we’ve seen there are distinct groups of people with different ideas about frugality:
– True Frugals are those that have always valued frugality- they tend to have higher savings rates than others and be engaged with financial planners to help them manage their money.
– Foul Weather Frugals are adopting certain frugal behaviors based on the current economic conditions: and they may not continue once the economy becomes more stable.
– Scared Straights have changed their behavior based on current economic conditions and, if they see the value of frugality, have the potential to move into the True Frugals category.
– Free Spirits have had limited reaction to the current economic conditions and believe it’s okay to live paycheck to paycheck.
Sentient and our partner First Command Financial Services will continue to track the trend in behavior of these four groups in the coming months. As always, we welcome your comments, questions and insights.