Family

Weekends for Alexa Smith are becoming increasingly crowded.

With two kids in diapers, she spends most of her waking weekend hours groping for ways to keep everybody busy.

"They get bored very easily," Smith says, roaming through the children's section of the Jacksonville Public Library with both kids in tow. "We read a lot of books — anything to keep them entertained and engaged. But when that doesn't work … they can get pretty fussy."

But Smith's babies aren't the only ones known for pouting. Smith's husband, William, has been sulking a bit too ever since the couple took a long, hard look at their finances.

"We had to start cutting some corners," says Smith, who manages the family checkbook. "And there weren't many things we could do without."

There was one thing that could be cut — golf. Every weekend, William was down at the Jacksonville golf course playing 18 holes with his friends. But with money being tight, he's had to cut that down to once a month ... if he's lucky.

"Don't get me wrong," Smith says, "I love my husband, but he needs an outlet. Now he's home all the time, reminding me that he's not playing golf."

But William Smith isn't the only one making sacrifices. Alexa has "drastically" cut back her trips to the hair salon and hasn't bought a new dress in ages. And rather than going to Books-A-Million to buy new books for the kids, she comes to the library for free.

"It's a little thing, but it saves money and gas and still gives us something to go out and do," she says. "Our options are pretty limited."

As are those of so many average American families.

Gas prices are high, lurking around four bucks a gallon. That inescapable reality has spilled more newspaper ink and gobbled up more hours of conversation from the dinner table to every spot along the talk-radio dial than any story in recent memory.

Gas prices are high. We all know it. We all must find a way to survive. But behind the everyday headlines, there are real people who have to come to terms with the fact that every visit to the pump comes with consequences.

"When you're putting so much money into your tank just to go to work and come back home, there's little, if any, room for anything else," says Donald Lee, who traded in his Ford Expedition for a used Honda Accord. "And my salary hasn't gone up, so I've gotta make some tough, tough choices."

Like skipping University of Alabama games this year. Lee's a life-long Crimson Tide fan, but with the price of gas the way it is, the family camper might just stay parked in the garage for the foreseeable future.

"I guarantee I'll be watching a lot more football games at home in front of the TV," Lee says, shaking his head in disbelief while sitting in the coffee shop of Books-a-Million, a copy of the latest Sports Illustrated open on the table. "And I'll be absolutely miserable. But that just proves how serious this thing is — missing 'Bama games … now that's serious."

Making adjustments

The ripples are being felt in virtually every area of American life.

According to a recent study by the Heritage Foundation, a conservative research and education institute in Washington, D.C., American households are being affected by gas prices whether they drive or not.

Analysts at The Heritage Foundation recently examined how going from $3 and $4 retail to $5 and $6 retail per gallon of gasoline would affect the U.S. economy. If prices continue to rise — total employment would decrease by 586,000 jobs, disposable personal income would decrease by $532 billion, personal consumption expenditure would decrease by $400 billion and personal savings would be spent to help pay the costs.

As sales of everything from SUVs to CDs have plummeted, there's no question that families are cutting back on certain nonessentials. Middle—class people are learning to adjust their spending but it's a transition that in some regards is made easier because there are advantages that exist today that weren't around before, explains Christopher Westley, associate professor of economics in the Department of Finance, Economics and Accounting at Jacksonville State University.

"For one thing, the Internet makes it easier to find deals and compare prices," he says. "Also, the economies of scale created by today's Wal-Marts and Costcos are lessening the full impact of the gas-price spike. Interestingly, while the share of income devoted to gas has increased, the average share spent on things like groceries has not.

"This means that adjustments are being made elsewhere."

Brian King knows this all too well because he's been one of those adjustments. Since 2001, King has run his own lawn care business out of Alexandria. But in the last year or so he's watched as his list of clients dwindled.

"They weren't necessarily rich, but all the sudden I've become an expense they could live without," King says. "I was dispensable because a lot of people are starting to do their own yard work in order to save money.

"You try not to take it personal, but still … It hurts."

Over the long haul when they anticipate these economic changes to be permanent, it will be easier for people to make adjustments by doing things such as moving closer to work, buying a hybrid car or even going so far as putting their children in public schools, Westley says.

"In the short run, their range of options is limited," he says. "While they may stay closer to home, they may also increase their consumption of goods that make their time at home more enjoyable. We see this in an increase in DVD rentals and in home—cooked meals."

But surviving the short hall is the major concern when the future seems so uncertain. To do that, Westley suggests people save as much as they can, get out of debt and maintain access to cash.

"The people who are suffering the most now are people who have not planned for an economic downturn," he says, "or who couldn't if they wanted to."

Survival of the 'frivolous'

As owner of Life's Styles hair salon on Henry Road, Sandy Stewart has spent the past three years getting established while building a reliable list of clients. And while she hasn't noticed a drop-off in business, she has recognized a change in their habits. Many women will break up their services, having a hair cut one day and then coming back a week or so later for the coloring.

"It's all the same to me," Stewart says, "but it makes them feel better."

Two years ago, Stewart began reducing her hair coloring rate for senior citizens, but has recently dropped the price for all women to $44.

"I could tell it was becoming an issue," she says. "And that's helped me save some customers who might have otherwise decided to stay home and color their own hair."

When the economy is weak, those without much breathing room start looking for places to cut corners.

"Restaurants have had to adjust their menus as the cost of food has increased," Westley says. "McDonald's franchisees have complained about increased traffic for the dollar menu on which they apparently make little money and even earn losses."

Things that were once considered necessary entertainment — dining out, going to the movies or sporting events — eventually become frivolous. But behind every consumer's decision to stay home and save money, hides some who depended on their business to survive.

Kim Dobbs, artistic director for Community Actors' Studio Theatre (CAST), which recently announced its upcoming season, is all too familiar with the painful cycle. But she vows to ride the storm out — come hell or high water.

"The economy scares our patrons and limits our funding, which limits my future," says Dobbs, who recently purchased a home in Anniston. "I've chosen to maintain my commitment to Anniston and am in a prayer state that Anniston will maintain its commitment to (CAST). I believe that the arts are crucial for a well-rounded productive society.

"I don't think of the arts as a luxury, but rather as an integral part of existence."

And yet there are some businesses and institutions that actually thrive during times of economic struggle. In general, firms that have created lower prices because of increased production are "truly heroic during recessions," because they teach people to become more self-sufficient, Westley says

"Higher education benefits, because enrollments increase when people cannot find work," he says. "In general, any industry that caters to people who want to increase utility from being at home or close to home benefits."

But there is one thing, frivolous or not, that many Americans refuse to live without — alcohol.

Preliminary numbers for the fiscal year that ended in June, show as gasoline tax revenues fell $10.94 million from 2006-07 to 2007-08, revenues from alcohol sales rose $1.89 million in the same time period. A June study by The Nielson Company, a national pollster, found that despite all that Americans are cutting back on, alcohol sales remain strong with 80 percent of consumers spending the same amount or more on beer, wine and liquor.

"Alcoholic beverages are withstanding the economic slowdown very well, compared to other categories that might be considered indulgent or non-necessities," says Danny Brager of The Nielsen Company in a recent Associated Press story. "To many consumers, alcoholic beverages are an affordable luxury."

Chad Padgett graduated Friday night from JSU with a degree in finance. But with a two-week old baby at home, he and his wife are already feeling the crunch. They're making the same tough decisions that so many Americans are having to face — cutting down on trips to the lake and weekends spent tailgating in Tuscaloosa.

And while there are countless variables in this economic equation, gas prices seem to be the constant, the root of all evil, the tangible evidence that money is pouring out of our pockets and into our gas tanks.

"It starts there and trickles down," says Padgett, who sees the problem from both angles as a finance and insurance manager for Lipscomb Auto Sales. "Gas affects so many things. There's a lot of fear … we're all scared and worried. And it's the gas prices that seem to hurt the most. That's where people lay the blame.

"It's something we all feel."

Seniors seeking more help as economy worsens

A recent report by AARP suggests that older Americans may be making some risky choices in the interest of saving money in tough times. The survey found that 59 percent of people 65 and older have found it more difficult in recent months to pay for essentials including food, gas and medicine. Nearly half said they have postponed paying their utility bills, and 10 percent said they have cut back on medications.