frugal / economical / sparing
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frugal
Using little money, time, or other resources and handling them economically.
Durch ihre sparsame Lebensweise konnte sie sich ein kleines Vermögen aufbauen.
Through her frugal lifestyle, she was able to build up a small fortune.
The adjective 'sparsam' (frugal/economical/sparing) is closely related to the verb 'sparen' (to save). If a person is 'sparsam' (frugal), it means they often and deliberately save money or resources.
Er ist sehr sparsam und legt jeden Monat Geld zurück.
He is very frugal and puts money aside every month.
'Sparsam' (frugal/economical/sparing) is very often used with the preposition 'mit' (with) and the dative. This construction describes what the saving refers to.
Sie ist sehr sparsam mit ihrem Geld.
She is very frugal with her money.
You can tell whether 'sparsam' (frugal/economical) describes a person or a device from the noun. If it refers to a person, it is about money or lifestyle. If it refers to a device, it is about energy or fuel consumption.
Ein sparsamer Mensch kauft nicht viele unnötige Dinge.
A frugal person does not buy many unnecessary things.
In its figurative meaning, 'sparsam' (sparing) is almost always used with abstract nouns and the preposition 'mit' (with). Typical examples are 'sparsam mit Lob' (sparing with praise), 'sparsam mit Worten' (sparing with words), or 'sparsam mit Kritik' (sparing with criticism).
Mein Chef ist leider sehr sparsam mit Lob.
Unfortunately, my boss is very sparing with praise.
scarce / just under / close
'knapp' and 'sparsam' both have to do with little or not much, but they describe different sides of this idea. 'knapp' means that only a small amount is available and it may just barely be enough, for example money, time, or space. 'sparsam' describes using little or using something only in small amounts. A car or device can also be 'sparsam' if it needs little energy. In short: 'knapp' describes the situation, while 'sparsam' describes how someone handles it.
Wir gehen sparsam mit Öl um, weil die Flasche fast leer ist.
We use oil sparingly because the bottle is almost empty.
Am Ende des Monats ist das Geld oft knapp.
At the end of the month, money is often tight.