Gas Prices More of a Financial Concern This Month

GALLUP NEWS SERVICE

PRINCETON, NJ -- When Gallup asked Americans to name "the most important financial problem facing your family today," they most frequently mentioned energy costs or gasoline prices, followed closely by healthcare costs and a general lack of money or low wages. Concerns about energy costs or gasoline prices are up significantly this month, back to levels Gallup previously recorded in August 2005. Mentions of gas prices increased substantially among Americans aged 18 to 34 and among those residing in lower income households.

The poll, conducted May 8-11, finds that one in five Americans (20%) say energy costs or gasoline prices are the most important financial problem facing their family right now. This is followed by healthcare costs, at 17%, and lack of money or low wages, at 14%. Americans also frequently mentioned college expenses (9%), high levels of debt (8%), retirement savings (7%), the cost of owning or renting a home (7%), and the high cost of living or inflation (6%).

Americans' perceptions of gas prices as the top financial problem increased from 12% last month to 20% this month. In February, just 8% mentioned gas prices. These trends have fluctuated significantly since Gallup first starting asking this question in January 2005. At that time, only 3% of Americans mentioned energy costs or gas prices as the top financial concern. This sentiment eventually increased to 20% in August 2005, before gradually declining to 14% by the end of last year. By comparison, the percentage of Americans mentioning healthcare costs or lack or money or low wages, the two items which consistently rank among the top three financial problems, has been relatively stable in recent months.

Younger vs. Older Americans

Younger Americans are now much more likely than older Americans to say energy or gasoline prices are the top problem facing their families right now. Twenty-nine percent of adults aged 18 to 34 mention energy or gas prices as the top financial problem facing their family right now, compared with 18% of adults aged 35 to 64 and 13% of adults aged 65 and older. Among 18- to 34-year-olds, there has a been a 19-percentage point increase in mentions of gas prices as the top financial concern since last month; among those aged 35 and older, there has not been any significant increase in mentions since last month.

More generally, healthcare costs are frequently mentioned by older Americans, while gas prices and paying off debts are more salient to younger adults. Here is a closer look at the results:

• 18- to 34-year-olds. The top financial problems for younger Americans are energy costs (29%), following lacking money or having low wages (16%), not having enough money to pay debts (15%), healthcare costs (10%), and the cost of owning or renting a home (10%).
  
  
• 35- to 49-year-olds. Among Americans in this age group, energy costs (18%), healthcare costs (16%), lack of money or low wages (15%), and college expenses (14%) are essentially tied as the top financial problems.
  
  
• 50- to 64-year-olds. Healthcare costs, at 22%, are the top financial problem for Americans aged 50 to 64, followed by energy costs (18%), and money and wages (14%). More Americans in this age group mention retirement savings as the top financial problem than in any other age group.
  
  
• 65 years and older. The most important financial problem for the elderly is healthcare costs, mentioned by 25% of respondents aged 65 and older. Lack of money and energy costs follow, at 14% and 13% respectively. Twenty-six percent of people in this age group do not mention any problem, nearly double that of any other group.
  

Lower vs. Higher Income Households

It might be expected that high gas prices would be more salient to low income households than for high income households, but that is not the case. Gas prices are mentioned almost as often among those living in higher income households as among those in lower income households. Over the past month, however, those in lower income households have become much more likely to mention gas prices, while this sentiment shows little change among those in higher income households.

In April, just 8% of those living in household earning less than $30,000 per year mentioned gas prices as the top financial problem. This increased 13 points, to 21% in the current poll. Among those earning between $30,000 and $75,000 per year, mentions of gas prices increased eight points, from 13% to 21%. There was a smaller increase among those earning $75,000 or more per year, at 14% in April and 19% now.

Here is a more detailed look at the financial problems facing Americans at different income levels:

• Earn less than $30,000 per year. Lack of money and low wages and energy costs are essentially tied as the top financial problem for those earning less than $30,000 per year, at 22% and 21% respectively. These two problems are followed by healthcare costs (18%) and a high level of debt (12%). Americans at this income level are the most likely income group to mention lack of money and low wages.
  
  
• Earn between $30,000 and $75,000 per year. The most important financial problems for those earning between $30,000 and $75,000 per year include energy costs (21%), healthcare costs (19%), and lack of money or low wages (16%).
  
  
• Earn $75,000 or more per year. Among those residing in high income households, the top economic concerns are energy costs (19%), college expenses (18%), retirement savings (15%), and healthcare costs (15%).

Survey Methods

Results are based on telephone interviews with 1,002 national adults, aged 18 and older, conducted May 8-11, 2006. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.