Having a brood of five keeps Mr Ivan Tan, 42, a trading representative in the finance industry, and his wife Rita, 39, alert to cost issues.

With five children aged between 11 years and 15 months, the Tans have started cutting their weekly grocery shopping trips to once fortnightly.

They usually shop at the Giant hypermart in Tampines.

During these trips, they stock up more on necessities rather than items like Magnolia ice-cream. The children did not mind the belt-tightening.

When eldest son Kieran, 11, asked for more pocket money earlier this year, the Tans probed further.

The boy told them that his $1.80 daily allowance was buying him less at the canteen.

Aware that inflation has been rising this year, they agreed to increase the sum to $2.

The couple had, in fact, anticipated tougher times. But they said they were still caught off-guard by the recent announcement of an electricity tariff increase.

Mrs Tan, who runs a cloth diaper business, Bumwear diapers, is glad her business, started in 2002, enables her to save money on diapers.

'We've been cloth diapering our children, as it is much cheaper than disposable diapers over time.'

The diapers, sewn in Singapore, can be washed and reused, and cost $27 apiece.

Among other cost-saving measures, Mrs Tan breast-fed her children until they were two to three years old.

The Tans do not pamper their children in other ways. The kids learn to use the MRT when they reach Primary 2.

'The school buses are costly, especially since some schools have announced their intentions to start earlier and bus fees may go up.

'With five children, we cannot drive them everywhere, so they use public transport,' said Mrs Tan.

They have a seven-seater Honda Odyssey but often use public transport.

When asked about his spending and saving plans for the future, Mr Tan said: 'I don't think the downturn will ease off soon.

'We just have to accept it. After a point, you cannot cut costs any more, so you have to examine your consumption pattern more closely and make the effort to work hard and earn more money.'

This article was first published in The Straits Times on October 5, 2008.