Rising gas prices are putting a strain on American wallets. Filling up the tank, once a routine expense, now feels like a burden. With prices jumping, we wanted to understand how this financial squeeze impacts travel habits and everyday commutes.
WalletHub conducted a nationwide online survey to gauge public sentiment. The survey included 220 respondents and was normalized by age, gender, and income to reflect U.S. demographics. They delved into everything from how Americans feel about current gas prices to the factors they consider when choosing a gas credit card.
Let’s explore the key findings and see how Americans are coping with the pain at the pump.
Feeling the Pinch
A whopping 73% of respondents expressed dissatisfaction with current gas prices. This sentiment cuts across demographics, making it a national concern. With everyday commutes and road trips becoming more expensive, it’s easy to understand the growing unease.
This widespread discontent signifies the significant impact rising gas prices have on American pockets. The financial strain is undeniable, forcing many to re-evaluate their travel habits and daily routines.
The Allure of Electric Vehicles
The high cost of gas appears to be planting a seed for electric vehicles. Nearly half (49%) of those surveyed showed interest in switching, suggesting a growing openness to electric cars. This interest is likely fueled by a desire to escape the unpredictable nature of gas prices. A significant portion (51%) remain unconvinced for now. However, rising gas costs could push electric vehicles to become a more mainstream choice.
Prioritizing Gas Rewards
In these trying times, savvy consumers are turning to gas rewards credit cards to mitigate the financial strain. A resounding 61% of respondents believe these cards are an effective tool to save money on fuel purchases. This trend indicates a shift towards strategic credit card usage to maximize gas-related savings.
It’s important to remember that using gas rewards credit cards responsibly is key. Paying your balance in full monthly ensures you reap the rewards without incurring interest charges. Many gas cards charge sky-high interest rates, between 21% and 28% APR. This is because they can quickly negate any savings.
Gas vs. Groceries
Despite the frustration with gas prices, the survey revealed a surprising twist. A staggering 78% of respondents considered food inflation a bigger concern. This suggests that for many Americans, the rising cost of groceries hits their wallets harder than gas prices. Due to recent market fluctuations, the price of a pound of chicken has increased by 35% compared to three years ago.
Filling up the tank is a less frequent expense compared to buying groceries, a household staple. This finding highlights the multifaceted nature of inflation and how it impacts different aspects of our daily lives.
Pursuing Price-Savvy Habits
The survey reveals that most (80%) Americans compare gas prices before filling up their tanks. This price consciousness highlights a consumer base actively seeking ways to save money amidst rising fuel costs. By shopping around, drivers can potentially minimize the financial burden at the pump.
Maximizing Fuel Efficiency
High gas prices have led people to change their driving ways. Before you take your next scenic drive, there are ways to make your gas tank last a little longer.
The U.S. Department of Energy says gas mileage drops quickly after 50 mph. Each extra 5 mph is like paying an additional 27 cents per gallon.
Slamming on the brakes and speeding up can reduce your gas mileage. Try using cruise control on the highway to maintain a steady speed and squeeze out those extra miles per gallon.
The Psychological Impact
High gas prices are a drag, but there might be a surprising psychological antidote: rewards programs. A survey found that 70% of people felt better about filling the tank when they knew they were earning points or cashback.
This suggests that even if the actual savings from these programs might be relatively small, the psychological benefit of earning something positive can be significant. It taps into our human desire to find a silver lining, even in frustrating situations. So, while rewards programs may not magically erase the pain at the pump, they can provide a small emotional boost.
Cut Back on Driving Due to High Gas Prices
Gas prices are pinching American wallets. Surveys show how people are prioritizing essential trips putting leisure drives on hold. To save money, 41% fill up less often. 80% of the respondents from the WalletHub survey stated that they strategically search for the best gas prices while 35% of Americans are even exploring public transportation,
Avoiding Summer Road Trips
Summer vacations are a cherished American tradition, but rising gas prices might force a change in plans by nearly 29%. Instead of hitting the road in gas-guzzling cars, some Americans are considering alternative travel methods. “Staycations” – enjoying local attractions and activities without traveling far – might become more popular. This could involve exploring nearby parks, museums, or cultural events. Public transportation or even carpooling with friends for essential trips could also rise as strategies to save money on gas.
Gas-Specific Cards
Even though many find gas rewards credit cards appealing, only 32% have a card specifically for gas. This creates a potential gold mine for credit card companies! They could develop specialized gas cards targeting budget-minded consumers.
Interestingly, there’s a generational gap at play. Baby boomers, at just 14%, are far less likely to own these gas-specific cards compared to younger demographics. This suggests a niche market waiting to be tapped.
Opting Carpooling
With gas prices pinching wallets, carpooling is re-emerging as a fuel-saving strategy. The days of splitting the drive to school or work with friends, and saving money on gas are back. You split the cost of gas, reducing your expenses in half. It’s a win-win.
Selecting the Right Gas Credit Card
The survey highlights a range of factors that matter most to American consumers. Unsurprisingly, rewards programs top the list at 65%, with people seeking cards that offer cashback, points, or miles for gas purchases. But it’s not just about the perks; financial responsibility is key.
Annual fees (41%) and interest rates (40%) are important considerations, as nobody wants to be stuck with high charges that outweigh the rewards. Convenience also matters (37%), with people valuing cards that are widely accepted at gas stations. Brand reputation (21%) plays a role as well, with consumers seeking cards from trusted issuers.