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10.3 Lesson 3: Budgeting for Transportation

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Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:
Intro
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1.

RESEARCH: How much does the average American household spend on transportation per year?

Learn It
Exit Ticket
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Learning Objectives

Students will be able to:

  • Compare the popularity of various transportation methods in the United States

  • Explore how access to different transportation options can vary based on geographic location

  • Identify ways to reduce their transportation costs

  • Understand the financial implications and overall tradeoffs of using different transportation options

National Standards for Personal Financial Education

 Spending

  • 1c: Explain methods for adjusting a budget for unexpected expenses or emergencies

  • 2b: Describe a process for making an informed consumer decision


Learning Objectives

Students will be able to:

  • Compare the popularity of various transportation methods in the United States

  • Explore how access to different transportation options can vary based on geographic location

  • Identify ways to reduce their transportation costs

  • Understand the financial implications and overall tradeoffs of using different transportation options

National Standards for Personal Financial Education

 Spending

  • 1c: Explain methods for adjusting a budget for unexpected expenses or emergencies

  • 2b: Describe a process for making an informed consumer decision


As you saw, Americans spend a lot of money on transportation on an annual basis. Scroll down to the chart in this article to take a look at what types of transportation Americans primarily use when commuting to work, school, or university. Then, answer the questions.


Commuting

Cars Still Dominate the American Commute

by 

Valentine Fourreau,

 

Apr 2, 2026

One month after the U.S. and Israel launched a war with Iran, the impact of the disruption caused in West Asia is being felt by U.S. consumers at the pump. Since the beginning of the war, Iran has effectively closed off the Strait of Hormuz, one of the world's busiest oil shipping channels. As a result, the average price of gas at the pump has topped $4 in the United States for the first time in nearly four years as the war continues to push up fuel prices.

This is bound to hit quite a few wallets. According to Statista Consumer Insights, 73 percent of American commuters use their own car to move between home and work, making it by far the most popular mode of transportation. Meanwhile, only 14 percent use public transportation while just 9 percent ride their bike. As our chart shows, alternatives to the car have become more popular since 2019, but none comes close to challenging the car's status as the king of the American commute.

While bicycles offer a gas-free alternative to many modes of transportation, there are several factors contributing to their low adoption for everyday commutes: for one, Americans are used to commuting longer distances than people in most European nations, automatically ruling out the bike for many. And secondly, many major cities in the U.S. aren’t exactly bike-friendly. According to a recent study, just two American cities made it into the 50 most bicycle-friendly cities in the world, when taking into account factors such as bicycle infrastructure, safety and usage as well as things as mundane as the weather.

Infographic: Cars Still Dominate the American Commute | Statista

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2a.

Does it surprise you that the majority of Americans use a car when commuting? Explain.

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2b.

Every mode of transportation except the car has gained popularity in the time period shown. Why do you think this is?

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2c.

What factors might impact what type of transportation a person decides to use?

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Your location can significantly impact the different transportation options available to you. Use these two interactive maps to see how access to intercity buses, bikes, and e-scooters can vary depending on where you live. Then, answer the questions.  

INTERACTIVE: Access to Intercity Transportation in Rural Areas 

INTERACTIVE: Bikeshare and E-scooter Systems in the US

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3a.


1st Map: Intercity Transportation

Make sure the map is set to % WITH ACCESS and BUS under “Intercity mode”.

  1. Use the slider bar under “Year” to see how access to buses across the country has changed since 2006. What do you notice?

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3b.

  1. Zoom in on your state and region/county. Look at how access to buses in your county has changed since 2006. What do you notice?

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3c.

2nd Map: Bikeshare and e-Scooter

  1. How has access to bikeshare and e-scooter programs changed across the country over time?

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3d.

  1. Zoom in on your state and region/county. How has access to these programs changed in your county since 2015?

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Depending on your location and needs, you may decide to get a car. When budgeting for transportation, it’s important to know that the cost of owning a car goes far beyond the price you pay for the vehicle. Answer question 1 first. Then watch this video to learn about the costs of car ownership. Finally, answer the remaining questions.

Costs to Consider When Buying a Car - Fees, Taxes & More

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4a.

BEFORE watching: What costs do you expect to pay in your first year of car ownership?

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4b.

If your car expenses are LESS than you budgeted for the month, why might it be a good idea to save that leftover money?

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4c.

How has this video impacted the way you look at car ownership?

If you weren’t expecting to spend so much money on a car or transportation, you’re not alone! Read this article to discover ways to cut back on transportation costs and stick to your budget. Then, answer the questions.

ARTICLE: Ways to Reduce Your Transportation Costs

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5a.

Which of these cost-saving measures are doable for you right now as a teenager? How might this change as you get older?

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6.

How might someone’s location impact the different transportation options available to them?

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7.

Joanne is buying a new car and her monthly payment is $320. She allocates $350/month towards auto-related costs. What mistake is Joanne making when creating her auto budget?

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8.

Andrew has a car and is moving to the city for his new job. Which of the following actions would be the MOST effective way for him to decrease his transportation costs?

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2d.

Think about the types of transportation people use in your community. How do you think that would compare to this national data?

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3e.

General

  1. Think of your life 5 years after high school. Would you prefer to live in a city with access to buses, bikeshare, and e-scooter programs? Explain.