Sounds like it's going to be a slow conversion. Have a family meeting and discuss the economy and the fact that any of us might be one step away from the streets. America has lived far too reckless a lifestyle in the financial realm and we are now paying for it.
A budget is the best first step so you can actually track what you spend … every penny of it. It's the only way to climb out of debt. And when you want out bad enough you won't mind the price it takes to get there … and the price is the loss of “things” and “stuff” that you were used to having … not needing, but getting.
A lot of money is spent on food and beverages. It's a good place to begin. Make a commitment to take beverages with you from home. Drink water. It will bring other costs down in your budget, like medical. The Importance of Water cannot be underestimated:
As far as the details of lifestyle, you'll find a lot of info on here in various topics. Be a regular visitor as topics come up and search the forum and website. Don't forget the blog also: http://www.thefrugallifenews.com
It's a tough road at first because humans tend to spoil themselves if given a chance … but the further along you get the more your “new habit” will become fun and your determination will be stronger. You also have the motivation of teaching a different pattern of living to your child.