NEW YORK — The "latte effect" of the go-go years had consumers spending $4 a day on coffee. Now the downturn is forcing them to rethink such habits.

As inflation squeezes budgets, middle-class Americans are taking fresh stock of their spending in search of ways to save a nickel or a dime. The result: People are giving up a variety of small financial vices.

For Michelle Hovis, that means refilling her husband's used soda container from a 2-liter bottle she buys on sale for 98 cents. She tweaked his daily habit of buying a 20-ounce bottle when the price crept up to $1.39.

"The price of gas, milk, eggs — everything you can't control — is going up. So you need to watch the things you can control," said Hovis, a 31-year-old stay-at-home mom from Iron Station, N.C.

While the realization that little costs add up is nothing new, it comes with added sticker shock as food and gas prices sprint ahead at a record pace. The result is that many people are putting the brakes on items they once considered necessary — like frappuccinos.

Milk, coffee, fresh fruit and bread are among the items that got more expensive by an average of 0.9 percent in April, the largest one-month increase since January 1990. Gasoline prices were up nearly 21 percent compared to a year ago.

Workers' wages, meanwhile, dropped for the seventh consecutive month.

The result is fewer latte runs. Literally.

Last month, Starbucks Corp. blamed rising food and gas prices when it reported a 28 percent drop in second-quarter earnings, and said sales at U.S. stores open at least a year had dropped — indicating customers may be summoning their inner Scrooges. Coca-Cola Enterprises Inc. also said last month that weak U.S. sales — especially of some 20-ounce beverages — will likely cause its earnings to drop.

FINANCES FIZZLING

Consider the jaw-dropping math behind "the latte effect" in today's economy.

A $1.50 bottle of soda for each weekday of the year, for example, would add up to about $390. With the price now at $2 in some parts of the country, that habit comes with an annual price tag of $520. Over five years, that's $2,600.

This is the point where a financial planning guru might multiply the cost out for decades, demonstrating how a carbonated beverage is quietly robbing you of your retirement. Consumers are crunching those numbers themselves and agonizing over their wasteful ways.

"Unfortunately, pain is required for change. The pain of the uncertain economy, of gas prices and food prices, is becoming an important reality check," said Sheryl Garrett, a financial planner based in Shawnee Mission, Kan.

For New York City resident Natasha Patel, the penny pinching means no more cab rides home on weekends. Instead, she relies on her monthly subway pass, saving about $20 in taxi fares a week ($1,040 over a year, $10,400 over a decade).

She also canceled her cable and Internet package, pocketing another $120 a month ($1,440 over a year, for anyone keeping track).

"It makes you really home in on the things you really want to do, rather than doing stuff just because you can," said Patel, a 34-year-old academic counselor at Columbia University.

INDULGING LESS

Taxis, mocha lattes and sports cable packages aren't even options for those who are suddenly out of a job. Others who rein in pricey habits are seeing the savings gobbled up by gas prices or mounting debt. But even among the relatively comfortable, rising prices are upending habits they've long known were costing too much anyway.

Cutting back doesn't have to mean a joyless existence. Simple measures like using cash instead of credit cards can make people more conscious of how much they spend, financial planners say. Taking a few hours to scan cell phone and cable bills for unnecessary charges can save, too. Shopping around for better deals when contracts run out is another good idea.

"Most people are not even conscious of how much they spend," said Laurie Hensley, who teaches a course on personal finance at Cornell University.

In some cases, the cost of all a person's habits can add up to more than basics like rent and transportation, she said.

BIGGER FACTORS

That's not to say the little habits will determine your financial fate. Other factors — mortgages, bad interest rates, credit card debt — are likely the bigger drains on your budget. But when times are tight, it's worth reviewing all spending, big and small.

Giving up pricey routines isn't stopping the Hovis household from enjoying life. Instead of buying prepackaged Lunchables at around $4 apiece, Michelle Hovis makes her own using deli meats and cookie cutouts; her daughters don't notice the difference.

To save money on gym memberships, they now take their two young daughters on family bike rides. There are no more trips to Chuck E. Cheese, but they enjoy picnics at a nearby peach orchard.

"We get to spend time together as a family," Hovis said.