The current economic climate in our country has caused people to re-evaluate their priorities and severely reduce the amount of money they are spending. We do not know how bad the economic situation will become, but most consumers are preparing for the worse case scenario and cutting way back on everything. Although consumers are spending less, they are also stretching every dollar as far as possible.

The current trend has people passing the mall to get to the local discounter. Secondhand clothes are becoming popular and many are beginning to look more closely at store brands which almost always cost less than the name brands. Coupons are being clipped more than ever and credit card usage is down.

Some people are taking second jobs, eating more at home and turning down the heat. Most are foregoing clothing purchases and making do with what they already have.

They are patronizing warehouse clubs and thrift shops. People are resisting mid-priced restaurants such as O’Charley’s and going to McDonald’s instead and pocketing the savings.

All of this saving on the part of the consumer may be good for their budgets but is actually bad for the overall economy. Yet, watching the value of their homes decrease and their 401K’s devaluing at record speed, most people are planning on continuing their current frugality. Consumers are learning to say “no, not today” when tempted by offers that they would not have resisted in the past. We may just see a major shift in the attitude of consumers that will stay with us for a long time.