Earlier this year, bank officer Julia Foo sensed that living costs were going up when her 10-year-old son came home complaining that $1 no longer bought the same portion of food at his school canteen.

Soon after, she began to feel the pinch herself when she was hit by the rapid jump in petrol prices each time she filled up her Honda Airwave stationwagon. Cab rides had also begun to cost 20 per cent more for each trip.

'I would pass the petrol station and see prices climbing almost daily. It was a bit alarming and it really hits you,' said Ms Foo, 41.

She added that household expenses have gone up by as much as 30 per cent compared to a year ago.

She and her husband, Mr Lee King Seng, 45, an engineer, now make it a point to be in their offices by 8am after taking their only son John to school, saving $2 a day on Electronic Road Pricing fees.

When she has to take a taxi, she tries to alight at the side gate of their condominium in Simei instead of having the cab enter the main gate to get to her doorstep. This saves her $1 each trip.

Even John, who is in Primary 4, is chipping in. He has, on occasion, walked home from school instead of taking two buses, a choice he made himself. It takes him 40 minutes to walk home.

Said Ms Foo: 'He is more aware of how expensive things are and is trying to save money in his own way.'

She said John had also stopped buying drinks from the vending machine after noticing that their prices had increased, choosing to drink from his water bottle instead.

The family now makes weekly visits to the library to borrow books and DVDs instead of buying them. That way, they also cut down on movie outings.

Whenever they dine out, they try to stop by a supermarket to buy drinks rather than order the pricier offerings in the foodcourt.

Long holidays are out. This year, the family will head for Port Dickson in Malaysia, unlike earlier vacations in places like Australia and Canada.

Said Ms Foo: 'I would say the rising costs have had a mild impact on us so far, but I see this as only the beginning.'

She added that tough times in the future might require the family to move in with her mother, who lives alone in a maisonette in Tampines, and to rent out their Simei apartment.

'If it gets worse, we'll have to do something drastic. But for now, we'll try to manage on our own rather than look to the Government for help.'

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