10 Depression Era Money Saving Strategies That Would Make Our Grandparents Proud (2024)

FAQs

What were some ways people saved money during the Depression? ›

To save money, families neglected medical and dental care. Many families sought to cope by planting gardens, canning food, buying used bread, and using cardboard and cotton for shoe soles.

Many people turned to farming, and grew the food themselves, like fruits, vegetables, cattle, chickens, sheep, and hogs. Many people would can their food so that it would last longer. Some people chose to hunt for their food. Some people harvested their own bees to make honey.

President Franklin D. Roosevelt's "New Deal" aimed at promoting economic recovery and putting Americans back to work through Federal activism. New Federal agencies attempted to control agricultural production, stabilize wages and prices, and create a vast public works program for the unemployed.

The depressed economy caused many banks (especially small banks) to go bankrupt. At that time there was no deposit insurance, so many people withdrew their deposits from banks and kept their money as currency. Many bank runs occurred, as depositors were wary of bankruptcy.

In all, 9,000 banks failed--taking with them $7 billion in depositors' assets. And in the 1930s there was no such thing as deposit insurance--this was a New Deal reform. When a bank failed the depositors were simply left without a penny. The life savings of millions of Americans were wiped out by the bank failures.

The TVA (Tennessee Valley Authority) provided jobs and brought electricity to rural areas for the first time. The FERA (Federal Emergency Relief Administration) and the WPA (Works Progress Administration) provided jobs to thousands of unemployed Americans in construction and arts projects across the country.

Soup kitchens and bread lines were methods of feeding the neediest people in the country during the Great Depression. Run by charities, private companies, and the government, many soup kitchens and bread lines served thousands of people a day.

During the Great Depression of the 1930s, homemakers stretched their food budgets with soups, rice and pasta–but beans were the commodity no household went without: cheap, high protein, and no refrigeration required until cooked.

Farm Families and the Great Depression

Farmers could grow their own food in large gardens and raise livestock to provide meat. Chickens supplied both meat and eggs, while dairy cows produced milk and cream. Many women had sewing skills and began producing much of their family's clothing.

With no job and no savings, thousands of Americans lost their homes. The poor congregated in cardboard shacks in so-called Hoovervilles on the edges of cities across the nation; hundreds of thousands of the unemployed roamed the country on foot and in boxcars in futile search of jobs.

What finally helped end the Great Depression? ›

Ironically, it was World War II, which had arisen in part out of the Great Depression, that finally pulled the United States out of its decade-long economic crisis.

By 1939, the New Deal had run its course. In the short term, New Deal programs helped improve the lives of people suffering from the events of the depression. In the long run, New Deal programs set a precedent for the federal government to play a key role in the economic and social affairs of the nation.

Those wealthy whose wealth was all in the stock market or was highly leveraged, lost everything. However, not every wealthy person had all their assets in the stock market or leveraged with debt. Many wealthy people owned land and buildings, all debt free. Many had lots of cash.

The best performing investments during the Depression were government bonds (many corporations stopped paying interest on their bonds) and annuities.

Depressions typically lead to periods of deflation. Consumers won't have as much money to spend on goods and services, which reduces demand. Companies will often lower their prices to make ends meet, which often results in more job cuts and lower wages.

Federal Emergency Relief Act: (FERA) 1933; the first governmental action to combat the Depression, the act allotted 500 million dollars to the states in order to provide for the needy and the unemployed. fireside chats: a series of 30 radio conversations, or chats, given by President Franklin D.

Lands. Buying lands has always been a way to save money and build wealth. Buying lands gave people a sense of security and they didn't have to worry about losing their money or spending impulsively. Also, lands were considered a symbol of wealth.

Final answer: In November 1930, many Americans engaged in odd jobs, sold homemade goods, and participated in government programs like the CCC and WPA to earn money during the Great Depression.