The average Midwestern family spends $45,069 each year, and more than 4 percent of that is spent at the gas pump, according to the Bureau of Labor Statistics.
Families in the Midwest spend an average $2,059 on fuel for their cars each year, according to the bureau’s 2006 data.
In addition, 6 percent of the family budget goes to health care, 14 percent to food and 32 percent for housing. As fuel prices continue to rise, families might begin to compensate by cutting costs from other parts of their budgets, said Ron Harstad, an economics professor at MU.
The near-record gas prices have caused some consumers to make significant changes to their lives.
Jennifer Reed, 54, of Rocheport, said she and her husband are looking to replace their SUV with a more fuel-efficient vehicle. “We’re getting a smaller car to have something to run around in.”
For others, adjusting to high gas prices isn’t as easy.
Harstad said many consumers are unwilling or unable to cut their gas consumption. They cannot find suitable alternatives to driving, and they aren’t quick to lower consumption.
“Even reorganizing your time to go to the bank and the grocery store on the same trip takes a little time,” he said.
Because consumers are spending more on gas, they have to make sacrifices elsewhere.
“People have to find another part of their budget that’s flexible,” he said.
Harstad said many consumers are making small sacrifices instead of completely cutting out luxuries.
“If airfares go up, they still go on vacation, but they look for a cheaper hotel,” he said.
Consumers might also compensate for high gas prices by limiting the number of times they eat at restaurants, he said.