Pinching pennies like your grandparents

Allison Linn Senior writer • Profile • E-mail

In today’s fast-paced society, the Hillbilly Housewife Web site — with its traditional recipes for making cornmeal mush and tips for turning leftover rice into breakfast pancakes — would seem to be a relic of a bygone era.

But with food and gas prices rising at a faster pace than most paychecks, the site devoted to frugal ways to feed a family has recently seen traffic increase by a third, to about 300,000 unique visitors a month. Susanne Myers, who took over the site from a friend about a year ago, says she’s been deluged with e-mails from people looking for cheap ways to fill their families’ stomachs.

“Especially toward the end of the month I get a lot of e-mails from women, (and) they’re pretty desperate,” Myers said.

They come from all walks of life, she said. One day, it might be a woman who has $20 left to feed her five kids; the next, a woman who was able to give up her pricey Starbucks habit after stumbling on Myers’ recipe for homemade mocha drinks. When milk prices surged, she got a lot of questions about using powdered milk, a cheaper alternative that the site advocates in many recipes.

Until recently, food was considered so cheap in the United States that many families rarely bothered with the type of serious, cost-saving home economics common a generation or two ago. Now the skyrocketing cost of everything from cereal to eggs is prompting some Americans to turn to traditional techniques for stretching a dollar or a meal.

The change comes as overall food and beverage prices have risen 5.8 percent over the past 12 months, according to the Bureau of Labor Statistics, and some household staples have notched even bigger gains. Americans paid a whopping 12.1 percent more for cereal and bakery products this past July than they did a year ago. Fruits and vegetables are up 10.1 percent over the same period.

Many expect grocery prices to continue to rise as global demand increases and farmers and ranchers pass on higher costs for everything from chicken feed to fertilizer.

The food inflation is clearly affecting American lifestyles. An April survey by market researchers NPD Group found that more than half of adults who described themselves as “financially challenged” were trying to use up leftovers more often and prepare more meals at home than they did a year ago.

Harry Balzer, a vice president at NPD who long has followed U.S. eating habits, said Americans are still eating out but are choosing cheaper restaurants or skipping desserts and side dishes. To save money at home, he said, more people are choosing grain-based foods, such as pizza and pasta, over meat-based meals.

He doesn't think they will spend a larger percentage of their paycheck on food.

Grocery chains are reporting similar trends.

Supervalu Inc., whose brands include Albertsons, Cub Foods and Save-A-Lot, is seeing more customers redeeming coupons, taking advantage of sales and buying store brands as they grapple with rising food prices. Spokeswoman Haley Meyer said the retailer also has noticed more shoppers swapping out pricier items for cheaper alternatives, such as ground beef instead of steak.

“We’re seeing consistent customer numbers — we’re just seeing a shift in what they’re buying,” she said.

At Wal-Mart Stores Inc., spokeswoman Melissa O’Brien said customers appear to be substituting chicken for red meat and buying more pasta.

Wal-Mart also is seeing a brisker business in its ready-to-eat items, perhaps because people are choosing to buy items like a pizza from Wal-Mart rather than going out. Aiming to capitalize on that switch, the company recently launched a television commercial promoting its take-and-bake pizza.

Still, don't expect all Americans to start baking their own bread and preparing bean dishes from scratch. While the price spikes have prompted some people to try their hand at those things, and to say they will give up restaurant visits, Balzer said most Americans just aren’t willing to give up the time savings and convenience of prepared food.

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