5 Frugal Money Habits Americans Can Learn From Other Countries

5 Frugal Money Habits Americans Can Learn From Other Countries

J. Arky   Tue, May 7, 2024

When Americans travel outside of the United States, there’s often a lot of culture shock experienced. The food might be prepared in a unique way and taste the exact opposite of what it is like at home. The languages are obviously different. And the amount of money people spend in other countries for everyday basic items … might not be as much.

This could be due to the exchange rate differences, or, it could just be the frugal habits that non-Americans have adopted in their financial lives.

The U.S. is known for its capitalism, wealth and price tags galore, but that doesn’t mean everyone has to spend a lot of money to meet their needs. Here are five frugal money habits Americans can learn from other countries.

Daily Grocery Shopping

Lots of Americans take one day out of the week to hit up the grocery store and buy everything they’ll need for the next seven or so days. In other places, a daily trip to the market can lead to surprising results, especially in their home-food budget.

“In places like Europe and Asia, many opt for daily visits to local markets,” said Jake Claver, financial director at Digital Ascension Group. “Buying fresh and only what’s needed for the day not only reduces waste but often results in healthier eating and surprisingly, savings over time. Americans, with their penchant for bulk buying, could re-evaluate this strategy.”

According to Kelly Palmer, founder of The Wealthy Parent LLC, “Europeans also save money by focusing on quality over quantity, especially when it comes to groceries. In European cities, you don’t find the same huge grocery stores you do in the U.S. which leads to a smaller, more curated selection of quality food. A smaller store means Europeans tend to just buy what they need and not stock up on items that will be wasted.”

Sharing Resources

In numerous Latin American cultures and countries, multi-generational collaboration is considered a financial cornerstone for families, creating an intricate and stable financial ecosystem. In Peru, for example, there is a practice of forming communal saving groups called “rondas” where community members add a weekly or monthly amount of funds to a shared pool.

Per tradition, this communal account goes to one member at a time, rotating among the participants while promoting saving habits. It also reduces reliance on financial institutions while strengthening community bonds.

“Beyond shared living arrangements, the insight lies in understanding the financial ecosystem that emerges from multigenerational support,” said John Browning, founder of Guardian Rock Wealth.

“In various parts of Africa and Asia, community sharing of resources, be it tools, books, or even skills, is commonplace,” Claver added. “This collective mindset not only strengthens community bonds but greatly reduces individual expenses.

 It’s not just about pooling resources; it’s about creating a dynamic network of financial wisdom, shared responsibilities, and mutual support. Americans can explore the depths of this cultural approach, considering how intergenerational collaboration can go beyond mere financial advantages to create a resilient family foundation.”

Repair Instead of Replace

To Read More:

https://finance.yahoo.com/news/5-frugal-money-habits-americans-171208752.html