Slashing. scrimping, surviving

Gene and Rhonda Martin had already slashed their food and clothing purchases, abolished family outings and enrolled in family budgeting classes.

But last month, the Minneapolis couple had to pawn a sentimental wedding ring to pay their mortgage. It's the latest and one of the most painful budget moves for the family since Gene Martin was laid off from his warehouse job last year.

The Martins' coping strategies are typical of Minnesotans reeling from the economic downturn, according to a survey released today by the Northwest Area Foundation, based in St. Paul. One in four Minnesotans surveyed report a household member losing a job in the past year.

Sixty-three percent of those surveyed say they've cut their spending. Roughly half now buy less food and save fewer dollars for retirement. Forty-four percent lent money to cash-strapped family and friends.

"There is a quiet crisis going on across Minnesota, across our region, every day,'' said Kevin Walker, president of the Northwest Area Foundation. "What's unique about this survey is that it tells what actions people are taking, as well as their attitudes toward their situation.''

Martin, 31, isn't surprised that so many people are holding onto their wallets.

"At the grocery store, I don't see people buying the flashy cereal and candy anymore,'' said Martin. "They're buying things that will stretch, like rice and beans and canned goods. People are looking for better bargains for their money.''

The survey was based on telephone interviews with 400 Minnesotans and 4,004 people nationally. It was conducted in June and July by Lake Research Partners, based in Washington, D.C. It's the foundation's fourth annual survey of Minnesotans' economic well-being, but the first to delve into their coping strategies, said Walker.

The survey showed that monthly unemployment rates don't reflect the reach of the recession, said Walker. Minnesota's unemployment rate was 8.1 percent in July, he said. Besides the one in four survey respondents who said a household member had lost a job, 41 percent said someone had a cut in work hours.

Housing apparently is so precarious that nearly one in four Minnesotans surveyed said they had let a friend or family member move in with them.

Cutbacks large and small

The Martins are among those struggling with housing payments. They're working with Habitat for Humanity to try to arrange lower loan payments with their mortgage company. They're taking classes with a nonprofit called Build Wealth Minnesota to learn to budget and manage their money.

But it's the everyday changes in their home, in their lifestyle, that affect them most. The couple have eight children, a blended family plus a niece and nephew whose mother died. The kids used to be able to open the refrigerator any time and grab a sandwich and drink, said Martin. Now it's ramen noodles between meals.

The Martins cut back on even small purchases, such as coffee and drinks on the road. Martin keeps a 12-pack of bottled water in the trunk of his car instead of swinging by SuperAmerica when he gets thirsty. They don't buy clothes unless absolutely needed.

"The kids were used to getting a snack whenever we stopped for gas,'' he said. "Things have changed.''

Martin took a job at McDonald's, but his arthritis and back pain ended that stint. Fortunately, Rhonda Martin works as an educational assistant for Minneapolis Public Schools, so there is some family income. And Martin continues to comb through job advertisements every day.

In spite of the setbacks, Martin is optimistic about the future. Temporary work agencies have just started hiring, he said. His older sons have found work.

"I figure if you go so far down, things have to get better,'' he said.

How Minnesota compares

Minnesota's community spirit shines through in the survey, which showed that 80 percent of those polled would be willing to volunteer for an agency helping people struggling financially.

Minnesotans are alike, and different, from other Americans surveyed, said Tresa Undem, vice president of Lake Research Partners and a native Minnesotan. They share the same struggles paying for basic needs as the country as a whole, and they are making spending cuts in similar areas.

But Minnesotans are more worried about whether their local economy will turn around -- 74 percent compared with 67 percent nationally, Undem said. Minnesotans also are less likely to blame struggling individuals for "poor choices''; instead they link their financial problems to the broader economy. About 22 percent of Minnesotans blamed people's problems on their own choices, vs. 31 percent nationally.

Walker said he expects the survey will be used by Minnesota nonprofits and governments to shape services to families. He said: "We hope people in the trenches will consider this a tool to help them make decisions.''

Jean Hopfensperger • 612-673-4511