The average U.S. household is expected to save about $650 to $700 annually while gasoline prices remain at their current low levels. That savings was projected to be a boon for retailers, but sales so far this year have been weaker than expected. Now we have a clue about the reason.

Most Americans are spending their savings on gasoline prices on other necessities like food and rent, according to a survey conducted this month by Bankrate. According to the survey, 40% of Americans are spending the money they are saving on gasoline for other necessities and 19% are putting the extra cash into savings. Another 4% are investing the money, and just 14% are spending the savings on items like travel or dining out.

Those earning $75,000 a year or more are more than twice as likely to say they saved the money than Americans who earn less than $30,000 a year. Half of women surveyed spent the money saved on gasoline for necessities, compared with just 31% of men. According to Bankrate’s chief economist:

The percentage of Americans earmarking money for everyday necessities outpaced those using it for discretionary purchases by nearly 3 to 1. … When just 14 percent of Americans ramp up spending as a result of gasoline savings, you see why the economy is growing at such an anemic pace.

First-quarter gross domestic product (GDP) grew at just 0.2% and projections for the second quarter have been cut by some analysts. For example, in late April Macroeconomic Advisers cut its second-quarter GDP growth estimate from 2.2% to 2%. That followed a cut from an initial projection of 2.8% in early April.

Even though pump prices on Monday reached $2.705 for a gallon of regular gasoline, according to AAA, that is still about 26% below the year-ago price of $3.646 a gallon.

It could be that Americans have gotten used to the volatility of pump prices since 2009, when prices tumbled even lower before climbing back to around $4 a gallon on average nationwide in early 2011 and remaining between $3 and $4 a gallon before beginning its plunge last September. Perhaps we think it makes sense to save our cash bonus from low gas prices now so we can afford to pay more later.

ALSO READ: What to Do, or Not Do, If You Win the $121 Million Lottery

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.