Rising gas costs crimping budgets

It was around Halloween when Bruce Barcusky decided it was time to really start to “tighten up the belt” in response to rising gas prices and other costs. These days, Barcusky, his wife and their three kids are eating out less, and then only for special occasions, and have cut back on things like clothes.

The West Chester, Pa., family also is trying to plan errands better so they can accomplish more with less gas, and Barcusky said they may cut back on some luxuries during their next family vacation.

But while Barcusky, 50, said he might mow his lawn less this summer if gas prices continue to go up, he’s not prepared to make even more drastic changes — yet.

“I’m not a proponent of driving around in a hybrid or one of those cars that gets 30 or 40 miles to the gallon,” Barcusky said. “That, unfortunately, is not a choice I can make with a family of five.”

Lindsey Jones, 25, said her family has already cut out extras like videogames and movies as gas prices have risen. Now, they are buying more food in bulk and considering starting a garden to save on food costs. She also is keeping the heat lower, and encouraging her kids to wear warmer clothes in the house.

Still, it’s not been enough to totally offset the increase in gas costs, especially since Jones and her husband live in rural Doyle, Calif., and have to drive 45 miles to Reno, Nev., for errands. Next, Jones plans to trade her SUV for a regular car, and is even looking at solar or wind power alternatives for their home.

While gas prices represent one of the most tangible hits to the wallet, it’s just one of several problems at play, said Dean Baker, co-director of the Center for Economic Policy and Research.

“Gas prices don’t help, but I think the housing prices are a bigger part of it,” he said. “People have lost a lot of wealth.”

Tyson, the former SUV owner, said she has lost equity in her home, and she and her husband also worry about how the housing downturn will impact a rental home they hope to sell.

“If we just had a gas price increase and that was it, that would probably be OK to handle,” Tyson said. “But when you’re handling not getting raises or the gas prices plus the mortgage mess, it can all really make for some not-so-good times.”

Still, Tyson said she’s determined not to let the current situation get the best of her. As painful as the gas bills might be, the family is still planning a driving trip to North Carolina.

“There’s so much bad news, but that’s the one thing we won’t sacrifice on, because it’s the family vacation,” she said.

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