Gas prices straining Americans financially

Jun 30, 2011

Reports say gas prices are making Americans wary of spending too much money

A report says more Americans are cutting back in order to cope with the rising cost of gas. Though some may cut corners by trimming life insurance policies, experts say that would be a mistake.

A poll by Harris Interactive reported 51 percent of Americans who own a vehicle say they plan to cut back on other expenses in order to pay for gasoline. Lower-income households are hit particularly hard by rising fuel costs, said the report, which noted 65 percent of households earning less than $35,000 a year have had to make budget cuts compared to 38 percent of those earning $100,000 or more.

Dining out, groceries, entertainment and clothing are just some of the areas that Americans are allocating less of their money toward during these volatile months. Others are simply choosing to stay at home more, which they hope will keep them off the road and save gas.

Experts say recent economic difficulties have encouraged Americans to eliminate some life insurance riders or slash their policies altogether. Doing so could leave a family at significant financial risk, and consumers are encouraged to simply try to cut manage policy costs rather than outright dropping coverage during times of financial stress.

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