Painful reality: Penny-pinching proposals

Printed in the Courier News

April 24, 2008

BY GLORIA CARR Staff Writer
Everything in Ted Jones' grocery cart was on sale.
The best buy was a dozen eggs for 99 cents with an in-store coupon at a local grocery store.

On the Net
• Family Service Association of the Greater Elgin Area:
http://www.fsaelgin.org/
• Administer Justice:
http://www.administerjustice.org/

Jones, like everyone else, has noticed a significant price increase in just about everything he buys. Everyone he talks to mentions the rising prices.

"It doesn't help that we are not in 'an official recession,'" Jones said. "Your pocketbook feels like it's a recession."

The average cost for eggs is around $2.16 a dozen, according to the American Farm Bureau Federation. The AFBF's MarketBasket Survey showed the total cost for the 16 basic grocery items increase about 8 percent in the first quarter of 2008.

While costs continue rising, median incomes have dropped in Kane and DuPage counties by $8,000, according to a new report by the Heartland Alliance. A total of 46,823 people are living in extreme poverty with an income of $10,000 or less, according to the study.

Average working people are caught trying to make ends meet. Ann Rodriguez sees the people who are struggling. She is program director of the Consumer Credit Counseling Service of Family Service Association of Greater Elgin Area.

The agency, which provides financial counseling, sees an average of 90 to 100 clients a month, she said. It's an increase over this time last year, and the clients range from those making $30,000 a year to those making $100,000 a year, Rodriguez said.

"We are seeing a lot of white-collar professionals coming in here," compared to previous years, she said. "People are coming in now for housing problems. They cannot pay their mortgage or foresee they won't pay in coming months due to loss of income or a decrease in income."
CCCS provides financial counseling to help anyone get out of debt. There is a $20 fee, which can be waived in certain circumstances. It recently received a grant to provide counseling for people facing foreclosure.

Rodriguez offers practical tips for anyone trying to cut back:
Stop eating out
"You can't eat out every week if you can't pay your mortgage," Rodriguez said. Experts agree that packing lunches and cooking dinner at home will help generate extra money at the end of the month.
Make a grocery list
Write a list of what you need and search for sales fliers for the best deals. Rodriguez does not recommend going store to store for items just to save 10 cents because it will cost you more in gas.
Buy only what you need
Rodriguez repeats this again. "Buy only what you need, period," she said. If you don't need it, don't buy it. This applies to anything -- groceries, clothing, shoes, etc.
Use coupons
Take advantage of manufacturer's or store coupons, Rodriguez said. Also, find out what days sales are held to get the best deals.
Create a budget
And, more importantly, follow it, she said. CCCS counselors develop a budget for every client. Budgets can work, Rodriguez said.

Judy Berndt is a lawyer with Administer Justice in West Dundee (pictured above right speaking to a group on financial, tax and legal issues). She offers bankruptcy, tax law and financial advice. Administer Justice sees people at or below the poverty level, however, many people who were previously considered middle income are finding themselves in that category due to layoffs or pensions that have gone bust, she said.

"It's so hard. Many of our clients are living from paycheck to paycheck," she said. "If they have one disaster, the dominos come falling down."

Her immediate advice for people in dire financial straits is to find help from places such as The Salvation Army, food pantries or social service agencies.

Berndt has common sense tips -- such as shopping at resale stores or holding clothing swaps with family or friends -- to save money during tough times.

She also recommends using coupons, buying groceries that are on sale or shopping at discount grocery stores. If meat is on sale, that's what you will eat, she said. If chicken is on sale, that is what you will eat. Eat leftovers, and instead of buying salad bags, buy whole lettuce and cut it up yourself, she said.

These are all common sense things, but "whoever said 'common sense is not so common' is right," Berndt said. "Our standard of living is so high, we forget ways people have routinely economized."

Jones uses coupons and has always budgeted. He is just watching that budget more closely now, he said.

He doesn't see an end to the rising cost of living.

"I would think this will last for a while," Jones said. "We will have to live differently than we have in the past."