If you run out of money before the end of the month, Reem Leila suggests ways to cope oha, a secretary at the Japanese Foundation, and her husband Iyad, owner of a gift shop, have been forced to tighten their belts in order to make ends meet. One result of this is that they moved their children to a less expensive nursery school. Iyad explained that, "as a family we couldn't afford to pay the exorbitant monthly fees for both of them. With the increase in prices we've had to cut our household expenditure by half. This means we won't have a summer holiday this year." Soha is particularly peeved by the fact that, not only is there no money for a holiday this year, her husband has to keep the shop open every day to maintain a reasonable income. "Just two years ago, my husband could shut down for a few days and take us to Alexandria or Hurghada. But now everything has changed, we can't afford any of this now," she said. As inflation continues to spiral, the cost of household basics has more than doubled. "I was shocked to go to the supermarket and find that staples like lentils, which used to cost LE2 a bag, now cost LE6," exclaimed one housewife. Nowadays, many families are unable to maintain their former spending habits, and are consequently uncertain and insecure about their future. How can a family deal with financial uncertainty? The bottom line is that we need to spend less and save more, which means adopting new shopping habits. According to Mohamed Ali, owner of a wholesale supermarket, "the price of everything is going up and will never come down." The examples are many: Roumy cheese now costs LE30 per kilogramme, up from LE18 six months ago; a litre of milk now costs LE5,50; a single egg will cost between 35 and 50 piastres; white cheese is LE16 per kilo; a litre of sunflower oil is LE6,75; beans and lentils cost LE7 per kilogramme. And a kilogramme of lemons, which used to retail for LE3, now fetch the princely sum of LE8. "Many people have reduced the quantity and quality of their house-hold shopping list. I have also been forced to reduce my profit margin. Still, prices are high but I can't help it," said Ali. So the message is that many people will now have to watch what they spend. But what is the best way do this? Well, for example, when faced with row upon row of expensive staples, try and keep track of exactly how much you spend so that you can account for where your money goes: make sure you spend on necessities and not on non-essential items. According to Mahmoud Deabes, professor of home economics at Helwan University, "it is useful to carry a small notebook and every day write down everything you buy. At the end of the month, break your purchases down into categories, for example food, clothes, medicine, electricity, entertainment, etc. List the items that do not fit elsewhere as 'miscellaneous'. Calculate how much you have spent on each category." After having sorted out your expenditure, he says, it is time to look at each category and see where you can cut down. Deabes suggests that every family should set a budget which includes short-term goals (daily, weekly and monthly spending) and a long-term plan (savings, vacations and investments). "If, for instance, you want to take a family vacation or pay the school fees, plan to cut down on regular expenses such as food or clothing. By saving as little as LE25 per week, you could save as much as LE1,200 a year," says Deabes. Once you have set your budget you should stick to it, but allow flexibility within your categories. For instance, you might spend more on entertainment during August, but much less in September, when you need that money for school supplies. During difficult economic times it is normal to feel emotionally unsettled. Some families are not able to handle the strain caused by financial problems, and people may experience a sense of failure that could lead to low self-esteem. Families members may even resort to blaming each other or people outside the family for their predicament. Psychiatrist Fekri Abdel-Azim, explains that, "When money is tight the family must decide what the top priorities are, such as health care and education. Then each member can give up things that are not as important." Since this is bound to be a traumatic shift, especially for children, Abdel-Azim encourages parents to get the whole family involved in the effort. "Involving kids is a good start to changing your consumption habits," he says. The best way to deal with any issue is to clearly explain the facts and problems, discuss the options and let the children share in whatever is happening. "What really matters is how you tell them. No dramatisations; explain as clearly as possible and in a few sentences so that they are not confused, and do not get bored during this important discussion," suggests Abdel-Azim. After all, at the end of day the most important thing is to find a practical solution, and the best one is where the whole family is involved. Shopping hints Wise buys are the key to saving money: ï Before any purchase, look for last year's model or discontinued items. For example, last year's brand name sports shoes may cost less than current styles. However, when buying last year's appliances, make sure spare parts are available. ï Always compare prices before buying. This goes for everything: food, clothes, car or even a new apartment. If you are paying in installments, compare suppliers. You might find one who offers lower interest rates. ï Buy things off season: a new air conditioner in winter and winter clothes at the end of the season during sales. ï Save your change as all those little coins can really add up. ï Buy Egyptian products which meet international standards, and are cheaper. ï When you go food shopping head to the wholesale supermarkets take advantage of "2-for-1" special offers if you really need the item. ï Do not shop for food when you are hungry, you might buy things you do not really need. ï When clothes shopping check out 'stock' or 'export' shops first. These sell brand name clothes with slight irregularities at reasonable prices. ï Choose solid colours and basic styles that will outlast clothing fads. If at all possible, buy children's clothes in slightly larger sizes so that they can wear them longer. ï To save on home repairs learn how to sort out minor problems yourself. ï Make an effort to limit telephone calls to five minutes or less. Buy prepaid telephone cards for mobile calls and set a daily time limit for telephone use for your children, especially teenagers. If they exceed it, let them pay for the extra time out of their allowance. ï Do not keep lights on in an empty room and teach your children to turn off the lights when not needed. And turn off the TV or radio if no one is really listening or watching. ï Use a 7-watt light in the bathroom at night instead of a large light bulb. And use fluorescent bulbs whenever possible as they consume much less electricity.
