Posted this a couple years ago...
The Differences Between Being Cheap and Frugal
Let’s get right down to the root of things. While we all have our own perceptions of what being cheap and frugal looks like, what is the actual definition of these two words? According to Dictionary.com “cheap” in the context we’re discussing means “stingy or miserly,” while “frugal” means “economical in use or expenditure; prudently saving or sparing; not wasteful.”
Basically, when someone is cheap or frugal, they try to keep their spending on the lower side. However, the motivations behind that goal are usually a bit different. Those who are frugal, tend to strive towards getting as much value as possible out of their money. They focus on spending their money on the things that matter to them. Generally, those who are frugal care about the value of their purchases, and those who are cheap focus more on the cost. While those who are cheap try to always get the lowest price on things they purchase, those who are frugal are willing to make exceptions for purchases that are important to them. In many cases, frugality only affects the party making the purchases, not those around them, which is why those who are viewed as cheap can sometimes rub friends and family the wrong way with their spending habits. For example, if you never pitch in for a tip when ordering food with friends and as a result, they need to put in more money towards the tip, you may start to get a reputation for being cheap. But, if you simply choose to order water instead of a pricey cocktail at a restaurant, no harm is done to others and chances are you’ll be viewed as frugal.