THE ART OF COPING: NEW FINANCIAL REALITY SETS IN AS MANY ARE FORCED TO CHANGE LIFESTYLE, SPENDING HABITS TO GET BY IN CHALLENGING TIMES

Clipping coupons is back. So is sewing. Even canning food, that old staple

of yesteryear, is making a resurgence as people cut back and save.

Across the North Coast, where thousands have lost jobs and homes to

foreclosure, or simply seen a dent in their 401(k) retirement plans or

paychecks, people are making lifestyle changes to make every penny count.

For some, the changes are big, and include forgoing vacations, passing on a

new car or putting off medical procedures they hope can wait for another day.

For others, the changes are more subtle, such as making gifts, not eating out

as often or renting movies instead of going to the theater.

Big or small, these changes herald a new approach to saving and spending

money, an approach that represents a sharp break from two decades of

free-wheeling consumption. Credit card spending is down, as is retail

spending, the lifeblood of shops and stores.

Many are resigned to the new reality, while also fearful, leading them to

make changes in their lifestyles and spending habits in order to pay the

monthly bills and hopefully have something left for future needs.

To explore the new economy, The Press Democrat asked a half dozen people to

share how they are making changes in their lives to save money. The lessons

they provide apply to almost everyone who is struggling to pay the bills.

THE STEIN FAMILY

Dr. Ken Stein, a Santa Rosa dermatologist, and his wife, Sandy, an artist,

said they've always tried to live within their means.

That includes living in the same house for 35 years and owning only one

car.

The couple advocate a return to values some might say are old-fashioned,

but they say never went out of style.

They make things they need and try to not spend money on the things they

want but can't afford.

The couple is trying to pass those values along to their 3-year-old

granddaughter, Brooklyn.

The girl, with help from her grandmother, made Easter bonnets using hats

that were bought at a dollar store, chalk and lace.

They also crafted ''telephones'' using old toilet paper rolls attached with

a string.

For outings, the family prefers visiting Howarth Park to going to the

movies. And if they do go out to eat, it's usually to Denny's for the Grand

Slam breakfast or another low-cost eatery where they can split a main dish.

''Kids have to be taught thrift,'' Ken Stein said. ''It worked in the old

days.''

THE ALARCON-LAGUNA FAMILY

Six months ago, winemaker Adolfo Alarcon, 45, was laid off for the first

time in his life, causing a crisis of confidence.

How was the Windsor man going to provide for his wife, Betty Laguna, and

the couple's two sons: Diego, 9, and Rodrigo, 14?

Alarcon said he couldn't sleep at night worrying about the bills. At first,

he hid the news of his layoff at St. Helena's Charles Krug Winery from

everyone except his family.

''I learned through networking that that's the worst thing you can do,

isolate yourself and get depressed,'' he said.

Instead, he and his family took action by cutting expenses where they

could. They stopped eating out at restaurants in favor of cooking at home and

stopped buying new clothes. They also interrupted a home improvement project,

replacing carpet with laminate flooring.

''I was very worried,'' said Laguna, who helped her husband negotiate a

moratorium on paying their home mortgage. They also considered selling one of

their cars.

It turned out neither cost-saving step was necessary. When it seemed like

things were at their most precarious, Alarcon found another job as a

winemaker.

Laguna also is taking courses to learn how to operate her own business.

The immediate threat has passed; but the experience will linger.

''I learned to focus on things you can change,'' Laguna said. ''You can

cry, but it won't help.''

EVA CABRERA

Eva Cabrera experiences all the pressures that come with being a teenager.

But the 16-year-old junior at Roseland University Prep has an additional

worry: her family's economic future.

Cabrera lives with her parents and two brothers in a rented two-bedroom

apartment. Her mother, Maria, cleans houses, while Silemon, her father, has

been unable to work the past five years as a result of a back injury.

Cabrera works part time as a decorator and waitress for a catering company

to earn money that goes toward her family's rent.

She said they've had to cancel their cable and Internet connection. They

also don't eat out as often or buy as many groceries as they try and stretch

every dollar.

But perhaps the greatest indignity for Cabrera is not being able to afford

new shoes or the fee to take the SAT test. She received a fee waiver the first

two times she took the test, but will have to forgo trying to improve her

score a third time.

''My grades are not what I hoped them to be because I'm always stressed out

about home, and always worrying about how I'm going to help my mom out with

rent,'' Cabrera said.

TITUS HENRY

For more than two decades, Titus Henry of Santa Rosa has been helping kids

in need.

But for the first time, the child care worker at Hanna Boys Center said he

did not receive a raise this year. His part-time job shuttling tourists around

Wine Country in a limousine has also suffered as fewer people book trips.

To cope with his decrease in income, Henry said he has made changes to make

his money go further.

Standing outside the Grocery Outlet on Fourth Avenue, Henry said he tries

to eat more healthy foods, not just for the health benefits but because doing

so costs less than buying junk food or eating out.

He doesn't go out as much in general, including forgoing professional

football games last season, an annual rite he used to share with friends who,

like him, are struggling with their bills.

But Henry isn't complaining.

''I feel blessed that I'm still working two jobs. If you look around, a lot

of people don't have that option,'' he said.

WENDY LEBLEU

Wendy LeBleu knows what it's like to struggle financially, having lived

through a divorce and raising a child on her own.

Now that business at her Fourth Street skin care studio is down, LeBleu has

had to revert to some of the same strategies that helped her get through those

earlier difficulties.

At the Dollar Tree store on Yulupa Avenue recently, LeBleu was happy to get

a two-for-one deal on birthday cards.

She said she eats more vegetarian fare, for both health and pocketbook

benefits, has reduced her cable to the family plan and canceled caller ID on

her phone, a savings of $10 a month.

''It's something you swing back into,'' she said. Tough economic times are

''not startling to me.''

You can reach Staff Writer

Derek J. Moore at 521-5336 or derek.moore@pressdemocrat.com