Some Americans Are Canceling Vacations to Pay Summer Utility Bills

Some Americans are canceling their vacations as they grapple with a summer of intense utility bills, according to a new survey.

The summer is among the most trying times of the year for energy bills, and as Americans push their air-conditioning units’ temperatures lower, their wallets are bound to absorb a major hit.

In a new Power Setter survey, one in three Americans said higher utility bills were forcing them to cut back on entertainment and hospitality costs, while one in five said they had fully canceled their summer vacation.

Across the board, inflation is still at 3 percent year over year, and electricity and gas costs remain much higher than they were just a year ago. 2024 also promises to be among the hottest on record.

According to the Environmental Protection Agency, Americans only saw an average of two heat waves per year in the 1960s. But in the 2010s, it jumped to six.

The rise in work-from-home arrangements has also increased the average American’s utility bill, according to Drew Powers, founder of Illinois-based Powers Financial Group.

“As more Americans are working from home, they are consuming more energy in the home that used to be consumed in an office building,” Powers told Newsweek. “Combine work from home with recent inflation in everything we buy, and many Americans are being squeezed just to meet everyday expenses. Vacations and entertainment are probably the first glaring expense people feel they can cut in their budget.”

While not all states see the same level of prices, California, Oregon and Washington residents are seeing some of the highest prices for natural gas, and many middle- and low-income families are struggling to afford other necessities on top of the utility bills.

In the Power Setter report, 75 percent of Americans said they expect their utility bills to increase over the summer, and 31 percent said these utility bills are driving them to spend less on their groceries to make ends meet.

“These rising costs are forcing tough choices,” Michael Ryan, finance expert and founder/CEO of michaelryanmoney.com, told Newsweek. “I’ve seen people cutting back on everything from entertainment to essential healthcare. It’s not just about skipping a night out anymore. Families are making real sacrifices.”

For some, covering this essential can even lead to debt. One in 10 of the surveyed respondents said they borrowed money to pay for utility bills.

Americans pay a substantial part of their energy bills on air conditioning, roughly 12 percent on average, according to the Energy Information Administration, and the summer only exacerbates this.

With so many families skipping out on their vacations, Ryan said the lack of travel is a barometer of greater economic ills.

“When 1 in 5 Americans are scrapping summer plans, it’s a red flag,” Ryan said. “This reflects the broader squeeze of inflation on disposable income.”

Ways to Lower Your Utility Bills

There are many ways to lower your utility bills naturally in how you use your air conditioning. Many Americans turn their AC on and off, but energy experts recommend keeping it on at a comfortable temperature instead, as this actually lowers your energy usage.

Your temperature should also be set warmer during the summer for at least a few hours a day.

You can also get a home energy audit to find out if there are leaks or gaps causing your property to use more energy. From there, you can add insulation to have a more energy-efficient home. The Inflation Reduction Act covers $150 in the form of a rebate for you to get a home energy audit.

Shade and window coverings can also go a long way in reducing your home’s temperature naturally, therefore requiring less intense air conditioning.

These steps may be necessary for many Americans. Ryan said for lower-income families, the skyrocketing utility costs can create severe implications.

“Lower-income households are bearing the brunt, with some seeing utility payments jump nearly 20% since 2018,” Ryan said. “A $100 per month jump in utility bills will have a much bigger impact on a lower income family, than an upper middle income one.”