What is the difference between a frugal and a cheap person

Many seem to confuse the difference between a frugal person and a cheap person, they both sound as if they would always try to acquire items or services at the lowest possible price. However, frugal is defined as being rational or economical in terms of managing resources while cheap is defined as simply the lowest possible price or quality.

A frugal person and a cheap person obviously has one thing in mind, to try to pay up for the least possible price in exchange for an item, the difference between the two is that the frugal person would also consider the real value lost at the expense of a lower nominal value. This means, if she is about to shop for a high definition TV, she would still consider the lowest possible price but would also look into the quality lost when the price is reduced. If comparing two TV's she would consider the real added value for paying a little extra just to be satisfied with the quality of the product. If the difference is negligible, the lowest price would be selected, however, if the difference is vast between the two compared products, she will consider paying extra for the added value of quality.

A cheap person would have little regard for quality or purpose as long as the two items compared would do the same job. The cheap person would always go with the lowest priced good or service even if the quality is compromised. This would sometimes result in the loss of real value because if the quality of the product or service is very poor, the cheap person would always end up buying or redoing a service thus paying for more.

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