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Americans spent largest chunk of household budgets on gas in three decades

Americans spent nearly 4 percent of their household budgets on gasoline in 2012, the highest percentage in three decades as persistently high pump prices cut into their checkbooks, the government acknowledged Monday.

The bad new for household budgets came as the top Republican on the Senate Energy and Natural Resources Committee proposed a sweeping new energy policy that would end American reliance on OPEC imports by 2020. 

Sen. Lisa Murkowski, R-Alaska, proposed expanded drilling, increased research on energy eficiency and low-carbon energy options and immediate approval of the Keystone XL oil sands pipeline as the key tenets of a plan to eliminate OPEC imports of oil within seven years. But she warned against unilateral climate change actions.

 

“Because climate change is a global concern, however, if we pursue burdensome and costly legal and regulatory responses that are unlikely to be matched by other countries, we put ourselves at a competitive disadvantage without making a meaningful impact on global greenhouse gas emissions,” she wrote.

Murkowski unveiled her plan as the Energy Information Agency issued a new report showing the average American household spent $2,912 on gasoline in 2012, or just under 4 percent of its income before taxes.

EIA said it was the highest estimated percentage of household income spent on gasoline in nearly three decades, matching a similar amount during a spike in gas prices in 2008 just before the election. Back in the 1980s, gasoline costs accounted for as much as 5 percent of household budgets, it said.

The agency, the statistical arm of the Energy Department, said Americans’ cost of driving went up even as their gasoline consumption went down.

“Although overall gasoline consumption has decreased in recent years, a rise in average gasoline prices has led to higher overall household gasoline expenditures,” it said.

“Although travel per household has increased significantly since the early 1980s, vehicle efficiency has also risen significantly, reducing the amount of gasoline used per mile,” the agency explained.

With efficiency gains and a slow economy, total U.S. gasoline consumption fell in 2011 to 134.2 billion gallons, its lowest level since 2001. But retail gasoline price rose 26.1 percent in 2011, and another 3.3 percent in 2012, when it reached $3.70 per gallon, the agency said. 

President Barack Obama, as a candidate in 2008, promised to take long-term actions that would reduce the impact of gas prices on families but has not been able to achieve that goal so far. In fact, prices began rising again in January after a brief winter lull.

“What we need right now are not appealing but meaningless gimmicks, designed to get politicians through the next election, “obama said back inn 2008. “What we need now is a serious national commitment to meet our responsibility to our country and the next generation… I wish I could just make gas prices come down on their own.  No president ca.

“What I will do as president is tax the record profits of oil companies and use the money to help struggling families pay their energy bills. I will fully close the loophole that allows corporations to engage in unregulated speculation that artificially drives up the price of oil,” he promised then.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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