Want to really see how soaring gas prices are affecting your bank account? Look at the average you’ll spend on gasoline over the course of a year.
According to a report from Yardeni Research, the typical U.S. household is now spending about $5,000 a year on gas. According to CNBC, that’s up from $2,800 one year ago.
Researchers say the spike in gas prices is causing more Americans to rely on credit cards to fill up their tank. This is because Americans have more saved up, even though the average American’s income was not adjusted to inflation. So basically, we’re not making as much, we’re spending even more because of inflation, and what we do spend is coming out of our savings.
CNBC says retail sales have actually been up by 8.2% this month. Yardeni Research says, “When we are happy, we spend money. When we are depressed, we spend even more money!”
According to AAA, a year ago, the average price for a gallon of gas was $3.04… seems like a dream that happened once upon a time. Unfortunately, today, gasoline reached a record high of $4.59 in the U.S. this week.
How have you adjusted your household to account for higher gas prices? Have you had to cut down on long-distance driving?