A recent CNN.com article discussed the changing spending habits of Americans due to the increasingly high price of gas. The article mentioned that many of the working class are buying less Starbucks and packing more sack lunches. Consequently, higher class retail restaurants have been suffering since Americans have been eating out less, or at least going to cheaper restaurants such as Chipotle or Panera, the article says.

While the rising cost of gas is hitting many families hard, it is also hitting individuals who are used to having more disposable incomes on their own. What it means is that overall spending in the economy is going down, which increases the effects of the recession that we are in these days.

The article also quotes some individuals that say that the decrease in spending is a good thing. Since Americans are spending less, less money is spent on non-essentials and extravagance. You might see people flaunting their goods less simply because there is less to flaunt around.

I see this as a good thing for myself. I'm talking about my own spending habits. Four years ago when I started grad school I bought Starbucks everyday, ate out everyday, and spent money on whatever I wanted to. At that point, gas hovered around $2. Today, it is well over $3 for me. I make my own coffee everyday (Dunkin Donuts > Starbucks, anyways) and try to pack my own lunch from last night's leftovers anyways. I also find myself trying to save gas by planning out my errands a litle better. Though I make less than I used to when I was working, I find myself actually saving more and giving more now than I did back then. I wish I didn't have to worry about budgets and spending habits, but trying to live simply is probably a better thing for me than spending excessively.

Anyone else feeling the crunch due to gas prices?