Hooray For Sub-$2 Gas? Maybe Not…

I had to laugh at a status update I saw on Facebook a few weeks back: “Who cares about the economy, gas is under $3 a gallon!” Right? I mean that’s great if you’re a commuter like me, but if I didn’t have a job, I wouldn’t be driving, so the price at the pump would be moot.

But when I saw the price of gas had fallen to sub-$2 in some parts of the country, it had me thinking this: Will lower gas prices actually get people shopping this holiday season?

Then I realized I’m paying $2.89 in Bridgeport, CT, the national average could fall to $2.25 by Thanksgiving, and I’m still not even going to spring for the McDonald’s Dollar Menu for lunch. It’s Chef Boyardee mini ravioli for lunch, or starve.

Anybody hoping cheap gas will spark holiday sales is in for a rude awakening, and I’m sure that’s not just my opinion. At 39, I’m not concerned about retirement yet. But my in-laws and parents have both seen their portfolios dwindle. And I’m sure a lot more people are thinking they’d rather spend time with loved ones this holiday season than money of gifts that are going to be in an attic or closet by February.

I drive a rather fuel-efficient (and paid off) Saturn, and during the summer, at $4.39 a gallon, I was paying about $45 a week at the pump, maybe $225 a month if I filled up five times. Now Thanksgiving comes around, and let’s say from then until Christmas it costs me $2.25 a gallon. I’m saving about $20 a week and $100 a month. Now I need that $100 a month to pay the credit cards I had to put gas on because I didn’t have that kind of cash floating around in my pockets.

I’ve changed my spending habits, and I’m sure you have. And most-likely, your customer has, too.