Friday, July 30, 2010

Coupons are Better for a Single Income Family

Coupons are a great way to save money at practically any income level, but the benefits are higher for a one-income family. Why is that so? Well, it really comes down to percentages.

Generally speaking, the more you need to buy, the more you can save by using coupons. Of course, if you're using coupons to buy things you don't need, then you're not saving money at all. However, when you're buying things you do actually need for more than one person, you have more opportunities to reduce your total cost by using coupons.

So, for the sake of argument, let's say that coupons save you approximately 5% off of your total cost. With two people, you have to buy twice as much, so you save twice as much. To further this argument, let's say that each person has their own income, and that the total costs for a family of two are equal to 40% of their combined incomes before the coupons. How much of their income, percentage-wise, did the coupons save them in this case? 5% of 40 % is 2%, so 2% of their total income was saved by using coupons in this scenario.

What if there is only one income to support these two people? It's not unreasonable to imagine that this single income is half of what the dual income family makes, so let's assume that's the case. That means that the same costs are a whopping 80% of this family's income. So, what percentage of this family's income are the coupons saving them? 5% of 80% is 4%, so in a way, coupons are saving the single-income family twice as much money as the dual-income family. Or, at the very least, the amount of money it saves them means twice as much to them.

So, in short coupons mean a lot more to a one income family than a multi-income family.
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