Gas Prices, Food Costs Take A Bite Out Of Family Budgets
Tuesday, Apr 29, 2008 - 06:18 PM Updated: 10:03 AM
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GARNER, N.C. - For every mile you drive, that's 63 cents down the drain when you factor in car payments, insurance and rising gas prices.
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Related Link: Smart Spending Resources
Discuss This Story
Related Link: Smart Spending Resources
That's according to AAA.
And with rising prices, it is only going to get worse.
This is where things stand: While you were sleeping, prices at the pump increased another penny.
The national average is $3.61. If that trend continues, gas in the Triangle will be $4.00 a gallon by June.
That's already the case in Chicago, where drivers are paying $3.99 a gallon.
Rising fuel prices are driving up prices for other things like groceries, forcing families to make ever tighter budgets and sacrifices.
Every time she goes to the store, there's a good chance Faye Prosser is spending a little less than most of us, though.
That's because she is a shopping expert who teaches others how to save.
"Utilizing the sales, making a meal plan, and using coupons on top of that," Prosser said.
She said usually, the average shopper spends $150 a week for a family of four.
"As a comparison, my budget every week, including food, paper products, pet food, cleaning supplies and bath and beauty items is $55 a week," she said.
Even Prosser, though, is feeling the pinch.
For the first time in years, she has upped her weekly budget; and that doesn't include how much she spends at the pump.
The bad news is that it's been getting tougher for everyone. The good news is that there may be some relief soon.
"Once the Federal Reserve stops lowering interest rates, we may actually see some of those commodity prices fall," said Dr. Mike Walden, a Reynolds Distinguished Professor at NC State University. "Maybe significantly. Including oil."
Walden says groceries and gas get a lot of our attention, because we constantly see the prices bouncing around.
"The good news is food is still a bargain," said Walden. "The average household spends 15 percent of their income on food. A generation ago, it was almost double that."
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