America is a country that excels in many ways—entertainment, entrepreneurship, technology, and more.
But we’re relatively young compared to much of the world, and there are few areas in which we could use some mentorship. Among them: frugality.
American culture generally encourages tireless working to finance overspending. You’ve only truly “made it” if you’re a workaholic who buys a large house and never relies on anyone else. But in other countries, being thrifty, having a better work/life balance, and sharing needs across the community aren’t just commonplace—it’s even celebrated.
If you’re looking to be a little more frugal, here are a few practices that are more globally accepted that you can put to work.
Money Habits That Americans Can Borrow From Other Cultures
Have you read the tips of every American financial guru you can find and still feel like your bank account has a giant hole in it? Maybe it’s time you start embracing some of the frugal habits of everyday people abroad.
Many of these money-saving strategies aren’t considered hacks, but rather common sense in other parts of the world.
1. Public Transportation
Driving is one of the more interesting aspects of American culture. In many places, driving is simply a necessity—but for many people, the ability to get in a car and take yourself anywhere is part of the vibe of American independence.
It’s far more common, too.
A 2024 YouGov survey asked Americans which of eight common forms of transportation they use at least once a week and at least once a month. Respondents were most likely to drive themselves weekly (65%) or at least monthly (50%). Just 11% of Americans said they ride a bus at least once a week and only 6% ride a train.
But public transportation use is much more common in many countries. And it has its perks: Using public transportation exclusively can often be much less expensive than the costs of buying, maintaining, and fueling a car. Even in the case that you own one car for certain trips you can’t make via public transportation, taking buses, subways, and trains more often can help you save on gasoline and reduce wear and tear on your vehicle.
Many parts of the country have insufficient public transit, of course, so your options might be limited. But you may be able to cut down in other ways, such as carpooling, riding a bike, or walking more often.
2. Multigenerational Households
Multigenerational households are those that include two or more adult generations or grandparents and their grandchildren.
Per Pew Research data, in the last five decades, the share of the American population living in multigenerational homes has more than doubled, which is largely attributed to the changing racial makeup of the population. Despite all of that growth, multigenerational households are still much less common in the U.S. than in many other parts of the world.
However, multigenerational living comes with financial benefits. The household may have multiple earners, which allows some money to keep flowing in even if one household member is laid off. A mortgage or rent can be split across more people, which means lower costs as a percentage of each person’s paycheck. Grandparents may provide free child care for their grandchildren, representing potentially enormous cost savings for their adult children.
Indeed, Census data shows that Americans living in multigenerational households are less likely to live in poverty.
Related: 10 High-Paying Jobs You Can Get With ‘Vanity Degrees’
3. Haggling
In many parts of the world, it’s common to haggle at markets, bazaars, and with private vendors.
In America? Not so much. Fixed prices are more popular. You might negotiate the price of large-ticket items such as a house or a car. But outside of that, it’s rare to haggle down the price of something you want—you either buy it or you don’t.
But the keyword there is “rare.”
You can haggle down some more common expenses. Among the things you might be able to negotiate include bank and credit card fees, auto insurance, cell phone bills, and more. Why? Well, it’s easier for companies to keep their current customers than to onboard new ones, and that provides consumers with a small advantage. So if a service provider suddenly increases your rates, don’t be afraid to try to whittle the price back down.
Related: How to Achieve Financial Minimalism to Reduce Stress
4. Bartering + Trading
Bartering is where you exchange services or goods for other services or goods—no money changes hands. It was a much more popular form of commerce centuries ago, but it’s still done to this day in some countries. For example, in small villages in India, people sometimes trade livestock, agricultural products, and labor with no cash involved.
Bartering and trading are generally more popular in places with a strong sense of community. So depending on where you live, bartering and trading might not be an option.
But it doesn’t hurt to at least ask—you might be surprised how many of your neighbors would participate if asked. Think of the skills and items you possess that might be of value to others.
Social anxiety creeping up? It’s OK. Consider these examples:
- Does your neighbor have nice garden beds they don’t use because they’re too busy? They might let you use their space in exchange for keeping some of the harvest.
- Does your spouse always pack you lunches that are far more than you can ever eat? A coworker might be willing to drive you to work in exchange for lunch every day.
With a little creativity, you could save some money by not directly paying for goods and services, and instead offering something of similar value.
Related: Feeling Thrifty? How to Save Money at Thrift Stores
5. Pooling Resources
In other parts of the world, particularly Latin America and parts of Asia, people form tandas. A tanda, sometimes called a lending circle, is a group savings strategy where people pool their resources and help each member access a lump sum of money at a scheduled time.
Each participant contributes a set amount of money regularly, such as weekly or monthly. Distributions are on a rotating, set schedule. Tandas help people pay for large planned purchases, such as a vehicle, or emergency expenses, without needing to take out a loan or rack up a high credit card bill.
Some workplaces have employee relief funds that work similarly. Employees and the company contribute money that gets dispersed when a worker has a medical emergency, housing disaster, or other personal crisis that affects their finances. It allows them a financial cushion until they get back on their feet.
Interestingly, there are instances of this in the investment world. For instance, it’d be difficult to buy commercial real estate all by yourself, but real estate crowdfunding platforms let you pool your money with other investors’ funds to do so. Another alternative investment that effectively puts pooled resources to use is equity crowdfunding, where everyday investors can take a stake in privately held businesses they otherwise couldn’t access.
Related: Cooking Costs Heating Up? Here’s How to Save Money Cooking
6. Smaller House Sizes
House sizes vary substantially by country, and America lives larger than most.
According to the World Population Review, the U.S. ranks No. 3 in largest average house size, trailing only Australia and New Zealand. Between 1920 and 2020, the median square footage of single-family homes in the U.S. doubled in size despite the median number of inhabitants going down.
Homes are smaller—sometimes much smaller—in other areas of the world.
Bigger houses were once considered better investments. Banks enacted credit policies that let people borrow more money, which in turn made it easier for people to buy larger homes. But sentiment is shifting toward smaller homes—a 2024 survey by the National Association of Home Builders showed the average desired home size was the lowest in years.
Buying a smaller house requires a lower down payment, results in smaller mortgage payments, and usually translates into lower ongoing expenses, such as utilities, maintenance, and repairs.
While you want sufficient space for your family, buying a too-big house as a status symbol can be a significant financial tailwind. Also, many Baby Boomers are reluctant to downsize their homes in retirement, even if they’re empty nesters—but less house can mean more financial stability.
Related: Should Retirees Move? 10 Considerations
7. Less Reliance on Air Conditioning
Air conditioning is a growing necessity in the U.S. According to home improvement information site Fixr, 98% of new single-family homes in America and 90% of all U.S. households, regardless of when they were built, are equipped with air conditioning. Comparatively, across Europe, only about 20% of households have air conditioning. In some parts of Asia, such as Indonesia and India, the percentage of households with air conditioning is in the single digits.
Monthly air conditioning costs can vary substantially depending on the AC type, efficiency, and the location’s utility rates. HomeGuide data suggest the range is about $17 to $270 per month, assuming eight hours per day of usage.
To be clear: A/C is a life-saving technology during some parts of the year—you shouldn’t avoid using your air conditioning on 100-degree days just to save a few bucks. But in more moderate heat, even using your air conditioner a few hours less each day could save you a decent amount of money. Tips like closing blinds and shutting vents in basements and unused rooms can also help to cool your home more efficiently.
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8. Less Credit Card Debt
Credit card usage is extremely popular in the United States—in fact, it has the highest median credit card debt compared to other nations among the leaders in gross domestic product (GDP).
Having high credit card debt isn’t inherently bad. It’s fine to accumulate a high balance as long as you pay off the balance in full on or before the due date. Unfortunately, many Americans accumulate a high balance and then don’t pay it off before the due date.
According to Bankrate’s 2025 Credit Card Debt Report, around half of Americans carry credit card debt and about 23% of credit cardholders don’t think they’ll ever pay it off. Furthermore, 64% of credit cardholders with debt said they have delayed or avoided financial decisions because of it. The higher your debt and the longer it goes unpaid, the more interest needs to be paid overall, which can create a debt snowball effect.
Overall, Americans should bring down their credit card debt to lower levels similar to other countries so that they can afford to pay off their balances in a timely manner. Building a healthy emergency fund can make it so people don’t need to rely on credit cards in the event of unexpected financial burdens.
Related: Is It Better to Pay With Cash or a Credit Card? The Answer: It Depends
9. More Frequent Grocery Shopping
Americans consider themselves perpetually busy, which shows up in many ways, including their grocery shopping habits. In 2024, Americans averaged making six grocery store trips per month, according to Drive Research data.
Comparatively, Europeans typically make more frequent grocery shopping trips—sometimes as often as daily.
If “time is money,” how can buying food more often be a frugal move?
Infrequent shopping trips require you to stock up on food more. You may grab certain food items “just in case” and buy as much as possible in bulk. But there are many items you shouldn’t buy in bulk. Why? Purchasing large quantities of perishable products leads to food waste, which ultimately costs you more.
An added bonus of more frequent grocery stops is that your food will be fresher.
Obviously, if you live a long way from a grocery store, more frequent visits could end up costing you a lot more in gas and wear and tear on your car. But if your grocery store is just a few minutes’ drive away, or even within biking/walking distance, it might pay to just go a little more often.
Related: 10 Best Trader Joe’s Shopping Tips
10. Maintain a Good Work/Life Balance
Americans work considerably more hours than Europeans.
A 2024 Kickresume survey asked Americans and Europeans about work. Among other findings, 40% of Americans said they work 41 to 50 hours per week, compared to only 26% of Europeans who work that much.
Not only do Americans work more hours, but they also take fewer vacation days. Only 9% of Europeans said they took five or fewer days off. In contrast, 26% of Americans said they took off five or fewer days. Most Europeans (59%) took over 21 days of vacation. Meanwhile, nearly half of Americans (49%) took 10 or fewer days.
For hourly positions, the more you work, the more you get paid … so how can working less be more frugal?
In the long run, overworking leads to burnout, which can cause physical symptoms such as poor sleep, headaches, and digestive issues. If you work a physical job, toiling for too many hours can take a toll on the rest of your body, too. All of this can lead to more necessary doctor and specialist visits, and sometimes even therapy, and … well, I don’t need to remind you of the exorbitant cost of health care. In some really-bad-case scenarios, work stress-related issues can force people into taking a leave of absence.
If your financial situation flatly requires you to work as much as possible, there’s not much you can do about this, and we can only hope your situation improves. But if you don’t have to be burning the candle at both ends to meet your immediate needs, it might be in your best long-term interest to moderate your work hours.
