10 Things Frugal People Never Spend Money On

As a busy mom juggling school drop-offs, grocery runs, and weekend family adventures, I rely on my car more than I’d like to admit. But here’s the truth: paying too much for car insurance doesn’t make those errands any smoother. In fact, sticking with the same provider for years without checking for better rates could mean you’re throwing away hundreds—if not thousands—of dollars annually.

Frugal families know that car insurance companies count on your loyalty and, frankly, your inattention. Rates can creep up over time, often without clear justification, leaving you paying for the convenience of not shopping around. But there’s a simple fix: make it a habit to compare quotes from different providers at least once a year.

Tools like Insurify make this process painless. In just minutes, you can receive personalized quotes and see how much you might save by switching. On average, families can save up to $996 annually by finding a better deal. That’s nearly $1,000 you can redirect to more meaningful goals, like boosting your savings or planning a family getaway.

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If there’s one thing that can derail a family’s finances faster than an unexpected expense, it’s high-interest credit card debt. I’ve been there—staring at the balance on my statement and wondering how the monthly payments seem to go nowhere, thanks to sky-high interest rates. 

Frugal families don’t let interest rates eat away at their hard-earned income. Instead, they use tools like balance transfer cards to consolidate debt and pause interest payments. Many cards offer 0% APR for an introductory period, sometimes lasting up to 18 months. This gives you a precious window to focus on paying off the principal without the burden of interest piling up.

But here’s the key: you have to go all-in during that interest-free period. Make a plan to pay off as much of the balance as possible before the promotional period ends. Every extra dollar you put toward your debt now is a dollar saved from future interest charges.

For example, if you transfer $5,000 in credit card debt to a card with 0% APR for 18 months, and you commit to paying $278 per month, you’ll be debt-free by the time the rate resets—without losing hundreds (or thousands) to interest. That’s a financial win worth celebrating.

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In today’s world, a reliable internet connection is non-negotiable—especially when you’re managing remote work, online learning, and the never-ending requests for streaming shows from the kids. But just because internet service is essential doesn’t mean you have to overpay for it. If you haven’t reviewed your plan recently, there’s a good chance you’re spending more than you need to.

Frugal families know that internet providers often hike rates over time, banking on the fact that most of us won’t notice—or won’t bother to negotiate. But switching to a more affordable plan or provider can free up significant savings. For example, T-Mobile offers high-speed internet plans starting at just $40 per month, with no credit checks, deposits, or long-term contracts that trap you into paying more down the line.

If you’re happy with your current provider but suspect you’re being overcharged, don’t hesitate to negotiate. Call and ask for promotional rates or mention competitive offers from other companies. Providers often have retention deals for customers who speak up.

Another frugal tip? Only pay for the speed you need. If your household isn’t streaming in 4K or gaming online, a basic plan could be plenty—and much cheaper.

Few things are more frustrating than seeing your hard-earned money disappear into a black hole of banking fees. Whether it’s a maintenance charge, overdraft fee, or a sneaky ATM surcharge from using your debit card, these small costs can quietly add up to hundreds of dollars a year—money that could be better spent on your family’s needs.

Frugal families avoid unnecessary banking fees by choosing accounts that work for them, not against them. High-yield cash accounts, like Wealthfront’s, are an excellent example. Not only do they eliminate monthly fees, but they also offer perks like an APY that is 4.25% as of November 2024 — currently about nine times the national average for savings accounts​. That means your money grows faster, even as you save on fees.

Look for accounts with no minimum balance requirements, free transfers, and compatibility with modern payment apps like Venmo or Apple Pay. If your current bank is charging you for basic services, it’s time to switch to a provider that values your money as much as you do.

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Let’s face it—when a major appliance like your refrigerator or washing machine breaks down, it always seems to happen at the worst possible time. As a mom, I’ve been there, staring at a pile of laundry with a broken dryer and wondering how to fit a replacement into the family budget. That’s why skipping warranty protection on expensive appliances is a mistake frugal families don’t make.

Instead of immediately shelling out for a new appliance, savvy households invest in affordable home warranty plans that cover repairs. For a small monthly fee, you can protect essential items like washers, dryers, HVAC systems, and refrigerators from costly breakdowns. Plans like those offered by Choice Home Warranty give you 24/7 access to insured technicians, ensuring a quick and reliable fix without financial stress​.

Why is this such a smart move? Let’s say your HVAC system needs a $1,500 repair. If you’ve been paying $40 a month for a warranty, that repair is covered, saving you from a major expense. Over time, the savings from avoiding out-of-pocket repair costs can far outweigh the warranty fees.

Feeding a family can be one of the biggest expenses in your budget, but paying full price for groceries? That’s a habit frugal families know how to avoid. With a few simple strategies, you can trim your grocery bill significantly—without sacrificing quality or nutrition.

One of my favorite tricks is using cashback apps like Ibotta. These apps reward you for buying everyday items, offering rebates on everything from fresh produce to pantry staples. A few minutes spent scanning receipts or clicking rebates can add up to hundreds of dollars saved over a year.

Another tried-and-true method? Joining a warehouse club like Costco or Sam’s Club. Buying in bulk not only reduces per-unit costs but also minimizes trips to the store—a win for your wallet and your schedule. For example, purchasing snacks, cleaning supplies, and even meat in larger quantities can result in savings of 20% or more compared to buying smaller packages.

And here’s a simple yet powerful tip: swap name-brand products for store brands. Many generic options are made by the same manufacturers as their branded counterparts, but they cost 25%-30% less. For a large family like mine, this single switch can shave $50 or more off a monthly grocery budget.

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Have you ever scrolled through your bank statements and realized you’re still paying for that gym membership you haven’t used in months—or a streaming service no one in the family watches anymore? You’re not alone. Subscriptions are sneaky budget drainers, and they add up fast. That’s why frugal families make it a habit to audit recurring charges regularly and cancel anything they’re not actively using.

Take a look at your monthly expenses and identify services that no longer serve your household. Tools like Truebill or Rocket Money make this process easy by scanning your accounts for subscriptions and even helping you cancel them with minimal effort.

Here’s an example: Cutting a single $10/month streaming service saves you $120 a year. Now imagine eliminating three or four unused subscriptions—that’s hundreds of dollars back in your budget, which can go toward family outings, savings, or paying down debt.

I’ve learned that technology can be both a blessing and a budget buster. Whether it’s a new laptop for school, a tablet for work, or a phone upgrade for a teenager. Tech purchases often come with a hefty price tag—especially if you’re paying full retail. But here’s the secret frugal families know: you don’t have to buy brand-new or pay retail markup to get quality electronics.

One of the best ways to save is by choosing refurbished devices from trusted retailers. Many refurbished items, like laptops and smartphones, are as good as new and often come with warranties for added peace of mind. For example, certified refurbished devices from brands like Apple or retailers like Best Buy can cost 20%-40% less than their brand-new counterparts, while still offering excellent performance.

Timing is another key to savings. Waiting for major sale events like Black Friday, Cyber Monday, or Back-to-School promotions can score you significant discounts. For instance, purchasing a laptop in November could save hundreds compared to buying the same model in spring.

Finally, consider skipping the latest tech trends. Older models of phones or tablets are often discounted when a new version is released, but they still meet most families’ needs.

I’ll admit it: the allure of grabbing a latte on the way to school drop-off or ordering takeout after a long day can be tempting. But trendy dining and coffee outings add up fast, and for families, the costs can quietly spiral out of control. A quick coffee stop might seem harmless, but at $4-$5 per drink, those “harmless” stops can cost you over $1,000 a year.

Frugal families know the secret: brewing coffee at home. Whether it’s a basic drip coffee maker or a fancy French press, making your morning brew at home costs pennies per cup compared to the $5 lattes. Plus, with a little practice, you can recreate your favorite coffee shop flavors right in your kitchen—without the markup.

When it comes to meals, preparation is key. The average family spends nearly $3,000 annually on takeout, often because of last-minute decisions or a lack of meal planning. By prepping meals in advance, you can avoid the urge to order in. Simple strategies like batch cooking on weekends, planning weekly menus, or keeping quick-prep freezer meals on hand can dramatically cut your food expenses.

In a large family like mine, major purchases—whether it’s a new car, furniture, or clothing—can feel like a financial mountain. But frugal families know that paying full price isn’t just unnecessary; it’s avoidable with a bit of strategy and patience.

One of the smartest ways to save is by leveraging rewards programs and cashback deals. For example, using a credit card with cashback rewards or shopping through platforms like Rakuten can earn you money back on purchases you’d make anyway. Some stores also offer loyalty programs that provide discounts, points, or member-only sales to help you save even more.

Price comparison tools are another lifesaver. Before committing to a big-ticket item, spend a few minutes checking prices online. Tools like Honey or Google Shopping can help you find the best deals and alert you to discounts or promo codes you might have missed.

When it comes to furniture, cars, or even clothing, consider gently used items from secondhand marketplaces. Websites like Facebook Marketplace, Craigslist, or local thrift stores often have high-quality items for a fraction of the cost. For instance, a lightly used dining table or car can save you hundreds—or even thousands—while still meeting your family’s needs.

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