As gas prices rise, families feel the pinch beyond the pump
BOWLING GREEN, Ky — Gas prices are climbing, and for most drivers, the impact is immediate: more money spent just to fill up. But financial advisors say the effect goes far beyond the gas station.
Dan Klein, a senior partner with Lockshield Partners, explains the broader picture.
“With oil prices and gas prices and energy prices in general, there’s the direct cost at the gas station,” Klein said. “We may be out an extra 20, 30 bucks a week, depending on our habits. That comes from somewhere in our household budget.”
That additional spending can strain families, especially those living paycheck to paycheck. But experts point out that the indirect costs can be even more significant.
“The indirect cost, which is farming, industry, transportation — everything is touched by oil or energy,” Klein said. “As we start seeing prices go up at the grocery store or fuel surcharges on products, that’s where the impact really starts to be felt.”
Rising energy costs are pushing up the prices of everyday goods, forcing families to make tough choices. For some, this means cutting back on small purchases, delaying plans, or reworking a monthly budget.
“When you start spending an extra 20, 50 bucks a week at the gas station, and your grocery bill keeps going up, that headwind can really start picking up steam,” Klein said. “Then choices start to get made.”
Financial advisors encourage families to review their spending and look for areas to trim early. Even small changes now can help soften the blow if higher prices persist.
“The best thing someone can do right now is look over their budget and figure out where they have discretionary money to pull back,” Klein said. “It’s better to make small incremental changes early rather than hope things will just work out.”
For now, the big question remains: how long will high gas and energy prices last? Experts say households that plan and make adjustments now will be in a stronger position no matter how long the surge continues.
