Saving money, buying what I really want, and not wasting money is how I like to live. There are some things that I splurge on and others that I have to really think about before purchasing. While I was watching the Fed Chairman on television, I kept thinking that he was going to say something of substance. To my liking, he never did.

Ben Bernanke wasn’t really saying anything that we didn’t already know. Yes we know that prices are over 3% higher, closer to 4% higher than the previous year. We also know that there isn’t as much economic growth or any in some sectors. Your wallet knows the difference. He said it may be because of the higher fuel prices being transferred to the consumer but he didn’t know.

“Getting money to low- and moderate-income families is good in terms of getting the most bang for the buck,” Bernanke said. This would stimulate the economy but would it be the best for all Americans?

One representative asked: how can we make sure that people won’t spend the money they receive on non-essential items? You can’t if people just receive a check then you can’t control how people spend their money or if they spend it. If people are given food stamps or other limited ways of spending money such as a credit on their utilities.

Do you remember the 2001 rebate that George W. Bush wanted us to have? I do but I don’t remember what I spent it on.

There is no way to make sure that people spend their money on specific things. Bernanke said that when the $300 tax rebate was given to people in 2001 to stave off the effects of the recession that one third of the people spent their money, one third paid down credit card debt and another third saved/invested it.

So, if today I received a check in the mail the money would go to one of the two ways spending or saving. With the difficulty that people are going through now, if they are near foreclosure they may use it to pay down debt.

Even if you are working and are comfortable you may be more inclined to restrain your spending because you do not know what the future holds, even if you have a fixed rate mortgage or none at all and a good hold on your savings and investing.

Retailers are trying to stimulate the economy the best way they know how by offering coupons and discounts. Two major book retailers have sent me coupons in my mailbox one for 25% off and the other for 30% off. Gas stations and grocers need to offer those coupons too, to everyone and that would be a real way of stimulating the economy. Although that wouldn’t help those who do not drive or do not cook at home. Our economy is fragile, we consume many things – much more than we probably need to. As people are realizing this, or realizing that they can’t pay for their whims then they pull back.

Let’s say the government decided to give everyone coupons for goods and services that they use and in order not to increase the national debt, people were able to use the coupons only if they paid cash for their purchases. This would make the economy get moving because people would spend their money on essentials without adding to their debt.

In a way, with the turn away from consumerism, and more people leaning toward being financially conservatism there will be a recession or downturn in the national economy. With more people cutting back on their spending en masse whether they have to or not, it really affects the economy. Especially if people cannot finance their chosen lifestyle with debt the way they had been doing in previous years.