Families Use Promo Codes To Stay Afloat During Economic Crisis

Travelers are using them to find airlines where kids can fly free.

High school students are using them to get free tests to use to practice for the ACT and SAT college entrance exams.

Single-income families are using them to save money at the grocery store, to buy school clothes, and even to download federal income tax software, such as TurboTax, free.

What are they?

They are promotional codes, or promo codes -- coupons that have gone digital. In 2009, for the first time in 17 years, consumers used more coupons than they did the year before. Most of that increase came from online coupons that consumers found at sites like www.BeFrugal.com, a website that tracks coupons, promo codes, and free shipping offers that are available online, so that consumers do not have to do the legwork of finding the coupons themselves. Upwards of 45 million Americans, or about 20 percent of the U.S. population, used online coupons in 2009. Manufacturers expect to offer, and have consumers redeem, even more online coupons in 2010.

The prevailing reason, explained Andrew Lipsman, an industry analyst, is clearly the economy. You might find that the economy forced people to become more Internet savvy and that they have sustained this over time.

Product marketing specialist Lenka Keston agreed. Its really hard for a retailer to be competitive without them now, she said, referring to promo codes.

Analysts say that five years ago, consumers who encountered a request for a promo code during the checkout at an Internet website were often offended if they did not have a code, so they would abandon their shopping carts and leave the site without completing their orders. Today, though, everything has changed. Many consumers now enjoy searching for bargains online. Now its like a sport, laughs Donna Hoffman, co-director of the Sloan Center for Internet Retailing at the University of California at Riverside.

Many, though, do not want to take the time to search for bargains, but cannot afford to shop without them. Thats where online tracking sites come in. Consumers can sign up to receive coupon offers every week in their email, or they can go directly to the website, input their zip codes, and find coupon offers that match the retailers which are located near their homes. BeFrugal even has specialized tools to use with online retailers such as Amazon.com its search engine will search for discounts in different Amazon categories, and its free shipping filler will find options for consumers that allow them to spend just enough to take advantage of Amazons free shipping (for orders of $25 or more), but not any more.

During these difficult times, people need to stretch every hard earned dollar, says BeFrugals founder, Jon Lal. Befrugal.com is updated hourly to provide consumers the latest coupons and special offers for every major online store.