5 frugal lessons from the Depression

5 frugal lessons from the Depression

5 frugal lessons from the Depression Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure

Advertiser Disclosure

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: December 17, 2010 Lora Shinn Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo

The Bankrate promise

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo

Editorial integrity

Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Frugal lessons from Depression-era ads
What can advertising from the Great Depression teach us? Plenty about , as it turns out. The 1920s ushered in a wave of advertising campaigns chasing the plentiful dollars of consumers. Ads created needs and desires for merchandise readily available for mass consumption. Furniture, watches, kitchen and cars rolled off the production line and into consumers’ homes. “You didn’t need these products for thousands of years,” says Robert S. McElvaine, chairman of the Department of History at Millsaps College in Jackson, Miss., and author of “The Great Depression: America, 1929-1941.” With advertising, “you create a need.” Shoppers in the Roaring ’20s responded to those ad campaigns by dropping a bundle of money, much like consumers of the 1990s and early 2000s. But after the bust, advertisers realized their approach had to change as people tried to save money. Here are some of the ads of the Great Depression from magazines aimed at a pinched middle class, and the lessons we can learn for our own frugal times.
Spend more on quality products
Advertisers of the day knew consumers were price-sensitive, and ads often revealed prices. But advertising campaigns also reminded to avoid falling for the cheap and disposable. Ads for higher-priced goods pointed out that this iron, vacuum or cloth would last for years instead of months. “Price was a major consideration,” McElvaine says. “You didn’t buy something and throw it away. You looked for lasting value.” As a society, we’ve become accustomed to items that we use and throw out. Repairing is as rare as owning a vacuum built to last. But by buying a well-made item, consumers can save money by not replacing it quickly.
Don t place frugality over nutrition health is priceless
In the 1930s, malnutrition was a real concern, as workers lost jobs and the Dust Bowl devastated farms. While the middle class wasn’t at risk, it was susceptible to ad campaigns for then-new (such as canned vegetables and instant cereal) that used scary words like “lethargic and pale” next to images of children. Advertisers knew just how to panic the middle-class mother. “Fear is a good way to sell things,” says McElvaine. “Packaged and processed foods took care of concerns about whether food was fresh,” says Peggy Kreshel, associate professor of advertising in the Grady College of Journalism and Mass Communication at The University of Georgia. Canned vegetables and fruit offered nutrition in a tin. Boost fruit and consumption — whether fresh, frozen or canned — to lose weight and save money in the long run. However, highly processed foods shouldn’t be such an easy sell. Cheap, high-calorie foods can contribute to obesity and increased health care costs due to weight-related issues such as diabetes and heart conditions.
Save money on energy-efficient appliances
Ads from the era appeal to customers’ sense of frugality. Newfangled electric ranges, refrigerators and oil furnaces became popular and were seen as a modern-day advance over wood- or coal-burning equipment. Devices also were depicted as labor-saving and time-saving, says Kreshel. Fireproof, weather-resistant asbestos siding and materials promised to cut costs and repel cold winds. Such ads dovetailed with the 1930s-era Rural Electrification Administration’s program, which put almost everyone in the U.S. on the power grid. “A lot of the New Deal programs helped Americans and expanded the market for private business to sell things to more people,” McElvaine says. For instance, many new electricity customers had a need for electric appliances. Appliances rated with the EnergyStar seal — a government standard for energy efficient appliances — and modern-day insulation without asbestos can save money by siphoning less from the power grid.
Consumer products can have multiple uses
In the 1930s, advertisers asked shoppers to consider multiple uses for one product. A tissue advertisement from the day offers more than a dozen ways to use a disposable hankie, and tries to convince that disposable is better than dirty cloth. Listerine advertised that it could be used for ridding oneself of dandruff, soothing a baby’s gums and avoiding body odor. “In the ’30s and to some extent today, it’s a harder-sell environment for advertisers,” McElvaine says. “So they had to come up with more uses for the product and to figure out ways to overcome reluctance.” In a buy-and-toss society full of single-use products, we rarely think about multiple uses for one item. But opportunities still exist. Baking soda can deodorize a closet or clean baby equipment. Vinegar erases spaghetti stains on clothing and cleans up scrapes on skin. A product with multiple uses can throughout the house.
Improve one part of your house at a time
The ’30s reintroduced . Ads offered one-element makeovers such as the installation of a linoleum floor or the addition of a fabulous piece of furniture. Magazine articles showed how to save money by moving around a room’s existing elements or adding a new bed skirt or curtain to modestly improve a bedroom’s or bathroom’s appeal. McElvaine says part of the frugal mindset of the ’30s was the precept that people shouldn’t be wasting money in hard times. It became socially unacceptable to flaunt relative wealth; expensive new furniture would be noticed by the neighbors. With home prices continuing to fall, it’s difficult if not impossible to to pay for a grand (as seen on TV). Today’s homeowners need to adjust to a new reality of small housing improvements over longer periods of time. A bathroom remodel could take months if a replaces just one element per month. By slowly transforming a room, you’ll improve it without raiding savings or going into debt.
Additional resources
5 frugal dating tips When it pays not to scrimp Frugal car ownership Saving in the recession Related Articles: 5 frugal dating tips When it pays not to scrimp Related Links: Frugal car ownership Saving in the recession SHARE: Lora Shinn

Related Articles

Share:
0 comments

Comments (0)

Leave a Comment

Minimum 10 characters required

* All fields are required. Comments are moderated before appearing.

No comments yet. Be the first to comment!