Growing up, there was a time when we had a bit of money. My dad was a pharmacist, but there were seven people in the home, so six figures didn’t stretch far, as you can imagine. We weren’t exactly hurting, but that changed when he got sick, and my mom went back to school to become a paraeducator. Money became even tighter.
If you grow up using a certain laundry detergent like Tide, chances are, when you move out on your own, you’ll keep buying Tide because it’s what you know. For me, Payless Shoes was what I knew. But the thing about Payless Shoes—as we all know—is that they didn’t last long. If you were an active kid, you’d notice how fast the bottoms wore out. Yet, when money is tight, you don’t always have the luxury of buying higher-quality shoes that last longer. Sometimes, you just have $30 for a pair that will get you through the next few months instead of the $80 for one that could last years.
As you get older and increase your income, it’s actually cheaper in the long run to buy the higher-quality item right away, rather than going for the cheapest option that needs constant replacing.
The Broke Mentality vs. The Frugal Mentality
When you’re broke, you make decisions based on what you can afford right now—not what will save you money in the long run. Buying cheap is often a necessity. But true frugality isn’t about spending the least amount possible; it’s about getting the best value for your money.
Examples of How Cheap Costs More Over Time:
- Shoes – A $30 pair that lasts six months vs. an $80 pair that lasts three years.
- Work Boots – Cheap boots wear out faster, leading to discomfort, injuries, and replacements.
- Kitchenware – A $15 non-stick pan that scratches in a year vs. a $50 cast iron skillet that lasts forever.
- Winter Coats – A $40 coat that barely keeps you warm vs. a $150 coat that lasts for years and actually protects you from the cold.
- Mattresses – A cheap mattress needs replacing every few years, while a high-quality one lasts a decade or more.
When Paying More is Actually Cheaper
A frugal person understands that some purchases should be investments. The key is knowing when to spend more and when it doesn’t make a difference. Some rules to follow:
- Daily Use Items: If you use it every day (shoes, cookware, mattress, winter coat), quality matters.
- Cost Per Use: Calculate how much you’re paying per use over time. A $200 pair of boots worn 500 times costs 40 cents per wear—cheaper than replacing a $50 pair four times.
- Durability & Longevity: Higher-priced, well-made items often last longer and perform better, saving you money in the long run.
Breaking the Cycle: From Survival Mode to Smart Spending
If you grew up broke, you might have ingrained habits of always choosing the cheapest option. But as your financial situation improves, shifting to a value-based mindset will save you more money over time. Instead of thinking, What’s the cheapest thing I can buy right now?, start asking, What will last me the longest and save me the most money overall?
The Psychology Behind Short-Term vs. Long-Term Thinking
One of the key psychological concepts that align with this topic is Temporal Discounting—the tendency for people to prioritize immediate rewards over long-term benefits. This explains why many individuals opt for cheaper, short-term solutions rather than investing in higher-quality items that save money over time.
Studies show that those who can delay gratification tend to make better financial decisions and build more wealth in the long run (Frederick, Loewenstein, & O’Donoghue, 2002). Understanding this bias can help individuals recognize when they are making impulsive decisions based on short-term needs rather than long-term financial well-being.
Conclusion: Frugality is About Value, Not Just Price
Being frugal doesn’t mean being cheap—it means being smart about where your money goes. While sometimes you truly can’t afford the higher-quality item, when you have the ability to choose, investing in durability and longevity will save you more money in the long run. The next time you’re about to buy the cheapest option, stop and ask yourself: Am I really saving money, or will I just end up replacing this sooner than I’d like?
By shifting from a broke mindset to a frugal mindset, you can make better financial decisions that pay off in the long run.
Reference
For further reading on Temporal Discounting and its impact on financial decision-making, see: Frederick, S., Loewenstein, G., & O’Donoghue, T. (2002). Time discounting and time preference: A critical review. Journal of Economic Literature, 40(2), 351-401. https://doi.org/10.1257/002205102320161311
The Broke College Student 
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