It’s a little nervous-making to get a letter from the Internal Revenue Service. My first reaction is always, OMG I’m being audited.
Nope. “We changed your 2010 Form 1040 to match our record of your estimated tax payments, credits applied from another year, and/or payments received with an extension to file,” the letter read. “As a result, you are due a refund of $1.”
Some people might think, “A buck? Not worth the gas to take it to the bank.”
Not me. A dollar still means something to me, even though it won’t buy a convenience-store soda.
What will it will buy?
Two pounds of rice from the dollar store. Something from the “green shelf” at the bakery outlet. Almost a pound and a half of bananas at the nearby Asian market. Two stamps, with change back. Seven meals for the hungry if you donate it to Feeding America.
Cheap dinners and debt snowflakes
It could be seed money for your emergency fund, or an extra buck toward your debt repayment plan. A debt snowball is made up of individual snowflakes, right?
If you’re really hard up, it could help make your bus fare to get to work on payday, or allow you to put an entire gallon of gas in your car instead of three quarts.
You might not know anyone whose budget is that tight. Maybe you do, though. Maybe someone you know is that close to the edge, and terrified that someone will find out.
For this individual, a dollar might represent a week’s worth of suppers. In his iconic essay “Being Poor,” John Scalzi noted that poor people pick “the 10-cent ramen instead of the 12-cent ramen because that’s two extra packages for every dollar.”
You don’t often see ramen that cheaply these days, but the Asian market in my neighborhood has it five packages for a dollar. A different flavor every night of the week until payday or the unemployment check arrives. It beats having nothing at all.
Books (and blood) for sale
I remember living that close to the bone. As a single mom working at a big-city newspaper, sometimes I needed a bit more cash on a Monday to buy milk or a new transit pass. (We got paid on Wednesday. I had no credit cards.) I’d raid the baby’s piggy bank and put it back when I could.
If the bank was empty, I had a couple of other scrape-up-cash techniques. The easiest one was selling books. I used to get free paperbacks from the book editor, who felt sorry for me. When times got tight I would take 10 of them to a used-book store and trade them in for a dollar in cash.
The one I didn’t do unless I had to? Selling a pint of my blood. I could do this only on a workday that ended by 4 p.m. (as a “permanent part-time” worker, my schedule varied). That gave me time to get to the blood place, open a vein, collect my $6 and still get to the day-care center before it closed. If you were late they charged – you guessed it – a dollar a minute.
Close that wallet, already
That’s probably why I still think of a dollar as being worth something. For starters, I hand out dollars when street people ask for help.
Besides, it’s precisely because a dollar doesn’t mean much these days that we ought to take a closer look at it. “Eh, it’s only a buck” – and before you know it you’ve piddled away $10 in a week on things you can’t quite remember buying. A doughnut, some beef jerky, a sticker for your kid.
What could you do with an extra $500 a year?
Overspending a dollar at a time beats taking a credit card to the outlet mall. But it’s still overspending. I’m as tempted as anyone else by, say, the post-holiday clearance bin. It’s fun to give a vampire-headed Pez to a young relative, and it was well under a buck.
At some point I come to my senses. (Usually.) I remind myself that a dollar saved on stuff that doesn’t matter is a dollar I could use for something I really want.
Not to get too old-school on you, but…I send away for $1 refunds even though the stamp costs 44 cents and the envelope about a penny. To me, it means I’m 55 cents ahead, even if I have to walk through snow up to my waist to reach the mailbox.
And please don’t leave a comment saying that my time is worth more than that. When you remember selling blood to buy milk for your kid, you value every greenback.
That $1 IRS check will go into “Home,” the bank account I opened for funds I get from rebates, babysitting money, recycling and other extracurricular gigs. Every so often I put in some cash from my day job. But mostly it’s been smaller amounts that, taken together, do add up. In other words, one dollar at a time.
Related reading:
- 14 frugal uses for an income tax refund
- Choosing what — and whether — to buy
- If life is the currency, I’m already rich
- 4 ways to think about money
- I’m not a payday lender. But I play one on TV.
My Grandma used to say “Mind your pennies and the dollars will take care of themselves.” I try to mind my pennies, nickles, and everything else so they can take care of ME!
This post brought back memories of “care boxes” from my youth. My mom and her circle of friends always seemed to know when someone in the neighborhood needed a little extra food, milk, toilet paper to get them to payday and a care box found its way to their porxh. It founds its way to our porch a time or two, also. A buck is important in this family, too.
@TraceyS: I love the idea of a “care box.” Some of the extreme (and non-extreme) couponers I’ve interviewed tell me they invite friends who are having money troubles or who have been laid off to “go shopping” in their stashes. One woman said she told a friend to do this and the woman took a bottle of shampoo. “No, really — go ahead,” the couponer gently urged her. The friend left with a big bag of essentials, and was crying with relief that she didn’t have to go without.
Another way to do it: Wait until you know the person won’t be home and then slip a gift card under the door with a note “from one of your many friends.” Or mail the card, using the person’s own home address as a return address — no one has to know who sent it.
Thanks for reading, and for leaving a comment.
I never snub my nose at any amount of money..even if it’s a penny.
I actually bought some ramen the other day when they were on sale. I haven’t had them in years, but I kind of like the taste and texture of it.
I always scan my grocery receipts and I’m always amazed at how economical and filling a bunch of bananas is.
@First Gen American: I eat a little ramen myself sometimes, especially when it goes on sale at seven or eight for a dollar.
And I pick up pennies myself; all “found” coins go into a vase and at the end of the year I round it up and send it to the food bank. An extra, mostly pain-free way* to donate.
*Unless I’ve just eaten a big bowl of ramen and have to bend down to pick up the coin.
I couldn’t agree with you more. Every dollar counts. About two months ago or so, ramen went on sale 10 for $1, which is the cheapest price I have seen in YEARS! You better believe I stocked up big time. My kids love ramen and it is super cheap. That $1 you got could have bought ten packets of ramen 🙂
I remember rolling pennies for milk 20 years ago, when we were young parents. And making the clothes last another week before washing (by hanging them out in the fresh air or washing the baby’s clothes in the kitchen sink), so we could use the laundry quarters for food. A dollar is always worth my time to save.
I love reading your blog! Very interesting article–thanks!
This morning a co worker came in so obviously happy and relieved. She is a single mother whose soon to be ex husband went off the rails, became abusive, and wrecked their finances. She called to make a payment on a E/R medical bill and was told the Financial Aid Dept. knocked of 70% of the bill!
Your article reminded me of her because last summer she ate Ramen for lunch every day, rode the bus instead of driving, and cut back dramatically on her Pepsi addiction. She saved all those little dollars in order to have a couple hundred to buy her son school supplies and clothes.
It is a little late, but Happy Mother’s Day to all you amazing women who sacrifice and save pennies for your lucky kids!
@Belinda Bigelow: Indeed — let’s hear it for the moms!
I love this essay. Every dollar DOES count. I can’t understand why some people don’t understand money is money, whether it is a penny, a dollar, or $500.
I’m still reeling from the day care center charging a dollar a minute if you’re late! It proves I couldn’t run a day care center – I’m way too much of a softie.
This was a well-timed post for me: I’ve been worrying a bit about how we’ll stretch our dollars, as our income is about to decrease at the same time the number of mouths we gotta feed is about to (happily) increase. But it can be done.
@schmei: And those were 1979 dollars. :-0
Seven meals for a dollar from Feeding America. OTOH, average food stamp benefits here are $215 per month, per person, about 16 times Feeding America’s cost. Also almost twice as much as my family spends on groceries, including indulgences like ice cream.
Whoever’s setting the food stamp benefit amounts should read this blog.
@zzzzzz: Feeding America is talking about buying in large, large quantities. You and I couldn’t buy rice (or anything, probably) as cheaply as food banks can because they’re ordering so much at a time.
I’m doing a food-stamp budget right now for an article. Not finding it as hard as some people might.
Loved this post! I still collect and roll my change (the stuff that doesn’t go in the laundry machine, that is!)
$1 goes a long way at my local farmers’ market. It’s a some vegetables or a small loaf of my favourite bread!
Hm… we got the same letter in the mail today. We are investigating as we are worried they’ve made a mistake.
Couple of things. First …being somewhat “frugal” I have always respected the value of a dollar. Just today I was marveling at the amount of weather proofing I was able to do on 6 new storm windows in a rental with a tube of caulk from Home Depot that I bought on sale for …..a $1.
Secondly, you guys bring back fond, fond memories of my DD2 coming home from a hard 1/2 a day of kindergarden …. her and I sharing a package of 8 to 10 cent Ramen ….then reading a story and taking a nap. This same little girl graduates in days and is off to college in the fall. Where did the time go?
I’m right there with you. When you go through hard times it gives you a different perspective, and I think, greater appreciation for the value of a dollar.
I love this, and I remember those days. Fondly, in a way, because they are a reminder that I am a strong person, and that when things get tough, the tough get resourceful. Plus I sure do appreciate being able to buy anything I want to eat now.
I have been and am now that close to the bone. Ramen noodle is still 10/$10 here , but I would not eat it. I looked at the ingredients and refused to partake. I would rather beg or dumpster dive for food. I have done the latter but not out of dire poverty, just for fun. Hey, I did eat and share the fun.
omg, i like the care box idea too. ps i also like ramon noodle i add hamburger and canned vegs it really stretch a meal specially if you got kids
I use coupons, and $1 pays the tax on a bunch of items I can get for free with a coupon. I buy what is one sale with coupons and while I am not extreme, I found out that my stockpile comes in handy when the money is tight.
@DB: Same here! If I get toothpaste (or whatever) free after rebate, I still owe the 27 cents (or whatever) in tax. And you’re right: Later on it’s nice not to have to pay for shampoo, toothbrushes, etc. — or to be able to give some of those items away to family, friends or shelters while still remaining within the constraints of your budget.
I’m about to head up to Anchorage for a house-sitting job. My niece is going to get nine disposable razors, some toothbrushes and a few other items that will fit into odd corners of my suitcase. Since she is a single mom, this will help stretch her budget, too.
Thanks for reading, and for leaving a comment.
As usual, Donna, you make me think a little more deeply about things. I try to live by the adage already mentioned by another poster ~ look after the pennies and the pounds will look after themselves (because, even though I’ve spent many dollars over the years, I guess I’m still a Brit at heart lol).
I never forget just what a dollar can get and I used to eat a ton of Ramen! Every now and then I eat some just to remember what it tastes like.
Growing up, if I had not lived in a very rural area near my large extended family, food would have been scarce. As it was every summer we had a bounty of fruits and veggies from all of my great aunt’s garderns! And it helped stretch our food budget. Alas we could not put food up as our fridge was an antique copper rounded top fridge (1950s or early 60s model?) with a TINY little freezer space that barely froze water for ice (no ice cream the freezer couldn’t keep it solid)!
And I was just remarking to my hubby the other day that I love (to the detriment of my waisteline) being able to go to the grocery store and buy whatever I want!!!
great article! but.. where in world are you buying gas for 1.00 a gallon! Its over $4 a gallon here in NY
@Paula: I referred to the extra dollar as allowing you to buy a gallon instead of three quarts. In other words, $4 worth vs. $3 worth right before payday.
Maybe that dollar would represent a feeling of moving in the right direction. Saving that dollar during hard times could make a person feel as if they are doing something positive for themselves when times are tough. Maybe its a positive feeling more than a lowly dollar.
This article is so timely. I must watch every penny for the next few weeks so I don’t have to dip into savings for living expenses. You see, I’ve already missed two days of work with a back injury. With no health insurance, and no sick pay, I will just have to be very careful with what money I bring home.
Thank you for linking to John Scalzi’s “Being Poor.” I remember reading and re-reading that. I can understand why some people stayed when Katrina came, especially poor pet owners who had nowhere to go with them.
Worth every penny to save a dollar. 😉
Like others, I carry a few coins in my pocket so I can use them if need be so I don’t need to break another dollar.
As I was reading this post, I literally got chills because I could relate to the tough times you mention. When you’ve gone through such tough times, you understand the value of a single buck. (It’s also about reminding yourself the value of a dollar when things aren’t so bad as well). Thanks for the reminder! Great post!
I can feel your pain at getting an IRS letter. I feel the same way anytime I get anything from the feds….
I agree that dissing a dollar, leads to dissing 100, then 1,000….Don’t worship ’em, but respect ’em!
This post is awesome! I intend to show it to my teenagers, who repeatedly use the phrase “but it’s only a dollar!” when they decide they want a candy bar or some other doodad when we are out shopping.
@Gail: Reach in their pockets/purses sometime and take out a buck. Do this two or three times a day. If they protest, say “it’s only a dollar!” 😉
Donna, clearly you hit a nerve with this post. I agree that every dollar counts which is why we just about never pay full price for anything and use coupons like you for food, entertainment, services and more.
@Kay Lynn: Only amateurs pay retail. 😉
Seriously: The thought of having to pay full price or more than I need to pay for something will usually cause me to shift gears. For example, if I’m out of eggs I just won’t eat any egg dishes until they go on sale somewhere. That’s where the free-after-rebate stockpile comes in handy; there’s never any need to pay $3.49 for toothpaste if I run out.
Nice post. A dollar is worth about what a penny used to be, in most people’s minds. And most people won’t bend down to pick up a penny. 😉
One thing that bothers me about this: How many taxpayer dollars were expended to refund one buck? If the IRS owed me a dollar, I’d rather they put it toward keeping Medicaid and Medicare alive than send it back to me.
@Funny: I had the same thought, i.e., how much did it cost to cut and mail the check plus send me a separate letter (two pages!) explaining the situation? Wish it could have been done via e-mail — first a note explaining I was due a dollar and giving me the option of donating it, and then if I wanted the money just an electronic transfer into my bank account.
I know those things cost money, too, but two sets of paper could have been saved.
Great post! Gives more food for thought. It is so easy to piddle away dollars…
That’s a wonderful article Donna.
I think more and more people are beginning to realize how important every dollar they earn really is.
My fiance finally got some part time work and spent 8 hours washing dishes for minimum wage… but that $64 he earned before taxes made him really proud because he hadn’t been able to “contribute” to our household budget since he moved out here because jobs are really hard to get… I fact he waited in line for 4 days at 4:45 am to get the opportunity for a minimum wage gig.
Since I Live in Orange County, CA instead of hearing how its “only $1–” its more, “Hey, its only $20 bucks man… don’t be so cheap!” But that $20 is half our grocery budget for the week…
Your post rings true for me as well. Case in point, yesterday my boyfriend and I were at a casino in Atlantic City with a group of friends. On one of the playing floors, my boyfriend found a voucher for $0.04. Someone had obviously left it behind, figuring it “wasn’t worth cashing”. He picked it up, tried to cash it at a machine, and the machine couldn’t process it as it isn’t filled with pennies! (I guess AC doesn’t mind their pennies!). So, another friend was going to cash in a ticket, so he asked her to submit it with hers. The cashier was able to redeem the voucher, and my boyfriend pocketed the 4 cents, well actually he gave me 1 and he kept three. LOL. We both mind our pennies. They aren’t trash. They add up. Wouldn’t matter how much money I had, I’ll always feel this way, as I have from when I was making very little, to now that I’m doing well for myself.
Save those pennies! If not for yourself, for someone you love, or somehow you can show generosity toward.
Your posts always remind me how important it is to value and save money. I started clipping coupons more often because of the advice you gave about how we can not only save money but find great deals; it made me realize that even if I only save a couple dollars due to coupons every week (though usually I get lucky and find more coupons to help me save more money), that’s still more than $100 in savings every year. So even saving just one dollar is important, because like you said, it adds up.
About eggs–I never run out. One guy thinks I raise three hens to save money on eggs. He does not get it when I explain that I spend nothing on them, get pets and eggs. Plus, they are grass-eaters and give me eggs that are good for me. I, also, will forego buying something for a certain dish until it goes on sale. The same guy says celery, bell peppers, onions, and garlic are cheap, so I should not be raising them. When I am strapped for cash, these items are the ones I cannot buy, not even for $1.
I can’t help but think about how wasteful our government is. What do you suppose the cost was to issue that $1 check (and all the other similar ones)? Of course, I want my money back. And I know that sending out that check gave somebody a job. But what if there was a (sure-fire) process in place that put all those $1 refunds into a government service we all use or programs to help the less fortunate?
I’m no bleeding heart. I delight in my 75 cent refund checks, too.
Just think about it.
Wow, you sold blood to buy milk for your kid? That’s some serious stuff. I commend you on your efforts. $1 is still a dollar. Well said.
I remember when I couldn’t even afford an extra gallon of gas. It was less than a dollar then. On my days off, I stayed home and deep cleaned my apartment. I had the cleanest apartment in town. I wish it was that way now.
Last night I was cleaning, and found a $5 bill. Man was I ever excited.
@Hootieman: I found a $20 bill a few days ago. And yes, I was excited, even though as found money it will go to the food bank fund. But that’s exciting, too: The food bank can do a lot with $20.
The thing i loved most about this post and its corresponding comments, is reading just how many people here who have gone through though times are remembering to give back once circumstances got better. 🙂
Your posts are so inspiring; however, at the same time, it makes me feel very wasteful. I hope as time goes by, I will take closer notice of where my money actually goes, every dollar of it.