Frugal vs Cheap: What’s Better?
Updated on September 6, 2025
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You save money, but when you think of frugal vs cheap, where do you fall? Which is better? Here’s how you can find out!
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As a stay-at-home mom living with my family on one income, we’ve become quite good at saving money. However, we’ve learned through this journey that there’s a difference between the frugal vs cheap saving mentalities. When we first transitioned to one income, bought a fixer-upper, and had our second child, we were in survival mode financially.
We learned we couldn’t afford everything we’d been able to previously, and that made us very cheap. We bought poor-quality products that didn’t last and made purchases that didn’t fully fit our needs because that’s all the money we had. Now, we are learning to transition from cheap to frugal. At first glance, the difference between frugal and cheap seems non-existent, but when you look closer, you’ll see they can actually result in quite different outcomes!
The Difference Between Frugal And Cheap
Frugality, as defined by Merriam-Webster, is ” careful management of material resources and especially money.” Being frugal is a mindset of stewardship. A frugal person looks to use their money efficiently and intentionally. A frugal person typically has a clear sense of purpose behind their decision to spend less. There is normally a financial goal they are working toward achieving.
Being cheap is different than being frugal in that it looks to save money in all situations at all costs. A cheap person has a mindset locked on spending the least possible, with a goal of immediate saving. The focus in this situation is much more short-term and usually not based on a long-term goal.
What Is A Frugal Mindset?
A frugal person values their money and uses it strategically to achieve life goals. Frugality sees money as a tool to be used to meet these needs. Here are some key points of a frugal mindset:
- Spending Focused on Value: A frugal person considers the lifespan and potential uses, storage, and purpose of an item when they choose which option to buy.
- Delayed Gratification: A frugal person waits until they need to make a purchase or until the item they need is on sale.
- Resourcefulness: A frugal person looks for creative ways to reuse or repurpose before spending money on new items.
- Big-Picture Thinker: A frugal person sets their sights on long-term goals. They may spend more upfront on a better quality item to save money down the road.
What Does It Mean To Be Cheap?
A cheap person’s main focus is to save money in all situations. It is less strategic and can result in accidentally spending more money in the long run. Here are some key points of a cheap mindset:
- Price Over Value: A cheap person will always choose the less expensive option, regardless of the quality or versatility of the product.
- Short-Term Oriented: A cheap person thinks only about immediate savings and does not consider the impact later. They may avoid car maintenance or doctor’s appointments, which can negatively impact their future and cause much larger bills later.
- Strained Relationships: Being known as a cheap person is typically a negative association. It can cause problems in relationships if you’re known to undervalue others by contributing less to group expenses or giving poor-quality gifts.
Examples of Frugal Vs Cheap:
- Shopping for Clothes: A frugal person will choose to buy a more expensive, well-made article of clothing that will last for many years. A cheap person will buy the lowest-priced item available, but needs to replace it next season.
- Travel: A frugal person looks for affordable transportation and hotels that meet their needs for comfort and safety. A cheap person will look for the lowest-priced option, which may result in accommodations that are too small or located in unsafe areas.
- Gifting: A frugal person will give friends and family gifts that will last. They will get these on sale or may budget for appropriate gifts. A cheap person will give lower-quality gifts in an effort to spend as little money on others as they spend on themselves.
Frugal Vs Cheap: What’s Better?
The difference between frugal and cheap is mindset and priorities. Frugal people value quality and big-picture goals. Cheap people try to minimize spending wherever possible in favor of short-term savings.
Each of these mindsets has its place. If you are in a survival mode season when money is very tight, you might need to be cheap out of necessity. Buying higher-priced items for better quality may not be an option at that time, and that’s ok.
Once you’re out of a season of survival, a frugal mindset will serve you better than a cheap one because it will help you meet your future goals. When you have money, but choose to use it wisely, you’ll be able to purchase that higher-quality item that lasts. Frugality should be the ultimate goal.
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