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HSFPP Update # 196—Do You Empty Your Paycheck into Your Gas Tank?

Message from Flashman: Choices that individuals and legislators make today will impact our future spending and safety. You have the individual choice of the type of vehicle you buy. Your choice of vehicle will impact how much you pay for fuel, how safe you will be in an accident, and how much money you will have for other necessary items, including savings. The decisions legislators make have an even larger impact on us. Does government spend money to maintain our infrastructure such as highways and bridges or to fund pork barrel projects, such as those discussed occasionally in the media like an expensive bridge to an island to benefit just a few families?

Message from Tina Gollihue: I’m a graduate student in Career and Technical Education. This lesson deals with teenagers’ spending habits. Most teens love money and driving. When one or, in this case, both are in jeopardy you get their attention. I personally have started using a few of these tips myself because, like everybody else, gas is eating up my paycheck. There are many helpful Web sites so I have included them below. 

 

Academic Expectations: 

Academic Expectation 2.18
Students understand economic principles and are able to make economic decisions that have consequences in daily living.
Unit 2-6

Academic Expectation 2.30
Students evaluate consumer products and services and make effective consumer decisions.
Unit 5

Academic Expectation 2.33
Students demonstrate the skills to evaluate and use services and resources available in their community.
Unit 5

Academic Expectation 4.1
Students effectively use interpersonal skills.
(Writing assignments, discussion questions)

 

Web Site Pick of the Week:

www.fueleconomy.gov

This website provides much information on fuel efficiency, why it is important, and why gas prices are increasing. Also, if you go to their site index, you can find local and state gas prices across the country. This is a great site.

 

In the New$... Do You Empty Your Paycheck into Your Gas Tank?

by Tina Gollihue, teacher and UK graduate student in Career and Technical Education

When I checked the price of gas I realized how much of it goes toward state and federal taxes. I was shocked to see how much I paid in taxes for gas. Now, because of the deadly bridge collapse in Minnesota last summer, both state and federal lawmakers are talking about raising these taxes further to pay for long overdue repairs. Kentucky actually has quite a few bridges that need repair because of safety concerns.

As gas prices continue to rise, I feel like I’m working just so I can afford to drive and to keep a roof over my head. Spending such a large portion of my income on gas really frustrates me. How can I save money for anything? An article I came across online, “Steer Clear of Crippling Gasoline Prices,” by MSNBC contributor Laura T. Coffey, got my attention. She explains ten ways that each of us can save money on gas. Truthfully, it sounded like my mom nagging me, but I tried a few of the tips and found them helpful.

For one, remove heavy or nonessential items from the car, as this will reduce weight and save gas. I looked in the trunk of my car and it was full of junk. I removed old shoes, textbooks, fast food wrappers, and even found my favorite hoodie that I thought I’d lost.  The trash bag was full and it felt like it weighed about 20 pounds. I bet if your mom saw your car cleaned up she be shocked. (Caveat emptor: Now that she sees your car cleaned, she might want you to clean your room next!)

Use the Internet. A variety of Web sites list gas prices at your local gas stations, which can save you time and money. Don’t drive around looking for the cheapest gas when you can locate it online.

            http://www.automotive.com/gas-prices
http://www.gaspricewatch.com/new/default_V3.asp
            http://www.gasbuddy.com/
            www.fueleconomy.gov

Don’t let your car run too long when you’re not moving. It’s easy to go out in the morning and warm your car up while you eat your breakfast so it feels nice and toasty when you’re ready to go. But is it worth the money it costs you to do this? I used to run into friends during the summer and I’d pull in beside them and talk. Now I turn my car off while we talk. Why waste my gas?

Coffey also recommended that you get regular maintenance on your vehicle. Has your dad told you your car needed an oil change, and your response was that it would cost too much money? Perhaps he explained that if you don’t change your oil it will cost you more now in gas mileage and much more later when your engine blows up. This is what they mean by “penny wise and pound foolish.” (If that doesn’t make sense to you, think “dollar foolish.” The point is that, with some things, if you don’t pay a little now, you’ll have to pay much more later.)

Another way to save money is to increase your tire pressure to the maximum recommended, as this will save gas mileage; but be careful not to go over the maximum listed on the side of your tire.
 
You can improve your gas consumption by 15% by slowing down and avoiding quick stops and starts. If gas normally costs you $20.00 per week, you can reduce it to as little as $17.00 by driving this way. If your car has cruise control, use it whenever appropriate, as this will help you smooth out your driving on the highway. In city driving, especially, avoid quick starts and stops. Slow down and drive the speed limit. The less you push on the gas pedal, the more money will stay in your wallet. I know it sounds boring, but just think how much money you can save.

Coffey also suggests you run all your errands in one trip whenever possible. Plan out what you need to do and where you need to go, doing as many tasks as you can in the same part of town. My best friend and I go and do all our shopping on Friday.  It saves gas to use one car, but it’s also fun to hang out at the same time. And why drive to school by yourself? You can share your rides to school and split the cost. If saving money sounds boring, think of it as getting a raise. If you suddenly have more money, you can probably think of things you’d rather spend it on, right?

Try a lower octane gas unless your engine pings. Most of the time, you can save 10¢ per gallon by using a lower octane gas. That might not sound like much, but every dime adds up, as any self-made millionaire can tell you. (Do you want to be a millionaire? Then listen up, because it’s possible.)

Coffey’s last tip is that you do your research before you buy a car. I thought that most cars that get good gas mileage were ugly but, after doing some research myself, I found there are some really sharp cars that get much better gas mileage than mine. I was really surprised at how many nice looking hybrids are out there. Look in the February 2008 issue of Consumer Reports: many of the new subcompact cars come close to getting the same gas mileage of the new hybrids.

My problem was that I couldn’t afford a new car, so I started looking at used cars. Unfortunately, used cars don’t have the gas mileage sticker on them, but the Consumer Reports article lists a Web site, www.fueleconomy.gov, where you can compare models of cars based on the gas mileage, even for used vehicles. 

I love to drive, but I also need money for other things. I’m glad I found Coffey’s article, as it has helped me save enough money to pay for the last class I took to finish my graduate degree.

Sources: (1) Laura T. Coffey, “Steer Clear of Crippling Gasoline Prices,” MSNBC, 5/22/07. http://www.msnbc.msn.com/id/18601044/

(2) “Top 12 Gas Savers,” Consumer Reports, February 2008, pg. 7.

 

Discussion Questions:

1.) How helpful do you think Coffey’s tips are for helping drivers save money on gas? Can you think of anything else that would help?

 

2.) Do you know how much you pay per gallon in taxes? Do you think you’re paying too much in gas taxes? Are we paying more in gas taxes than other western countries?

 

3.) Should Kentucky lawmakers lower speed limits to save lives and gas money?
Yes ___  No ___. Explain your reasons.

 

4.) Should all bridges have signs posted saying how safe they are? How often do you think bridges should be inspected? Were you aware of the Minnesota bridge collapse last summer? Do you think something like that could happen in Kentucky?

 

Follow-up Activity:

Social Studies educators: Have students research how much gas cost when the student was born or when their parents began to drive. Also have them research the cost of gas in different states. Are students surprised at the differences from state to state?

Science educators: Have students research the difference in three types of gas available at the pump and why they cost different amounts. Another alternative is for them to research the conditions of bridges in their county and write their findings. They could even send a letter to their local newspaper or write an article on the subject for the school newspaper.

English educators: Have students argue for or against raising gas taxes per gallon to pay for needed bridge repairs nationwide. (They should consider the bridge collapse last summer in Minnesota. Was it avoidable? What could have been done to prevent it?) Also have students submit an article to the school paper or a letter to the editor of their local newspaper.

History, World Civics, or Math educators: Have students compare prices of a gallon or liter of gas in the U.S. and all other western countries; and look at both the total price and how much of it comes in the form of taxes.

Kentucky High School Financial Planning Program

http://www.ca.uky.edu/fcs/hsfp

The purpose of the HSFPP financial updates, video lessons, and Web site is to assist county Extension agents, credit union educators, high school teachers, and parents who home school their teenagers so that they may improve the economic well-being of our teenagers; and also to show educators how the HSFPP, updates, and video lessons meet Kentucky core concepts. The Web site, updates, and video lessons are provided by the University of Kentucky Cooperative Extension Service, and are free to all educators. The list of core concepts and order form for free program materials including the student guide and instructors manual can be found on the Kentucky HSFPP home page.

If you are not already on our listserv:

The video lessons are available only to members of our listserv and will not be posted to the HSFPP Web site because of the timeliness of the information. If you would like to receive our video lessons, which are sent to our listserv biweekly, on alternate weeks from these updates, please sign up at the following page of our Web site: http://www.ca.uky.edu/fcs/HSFP/response.htm.