Don’t let inflation dampen your summer fun
Discuss affordable plans with the family if you’re feeling the economic crunch
The rising cost of living impacts more than just the necessities. Thanks to inflation, you could be spending nearly 30 per cent more for your summer plans this year.
This means families may need to consider adjusting their plans and these discussions can be stressful and emotional.
Brenda Wood has advice on how families can have these tough conversations. She is a licensed insolvency trustee with Salyzyn & Associates Limited in Bedford. They are Nova Scotia insolvency trustees licensed by the federal government to administer government-regulated financial options to solve debt problems.
Rising costs may mean that families can no longer do what they had planned this year. So, Wood offers some tips on how to talk about it.
• Set a family meeting. Yes, an actual meeting, recommended Wood. Set a time, date and place for the meeting. Don’t set it during a holiday, high stress or busy time of day like mealtime. Have your meeting in a comfortable setting that is free of distractions. That means no TV or cellphones allowed. Have an agenda. Simply write down the points you want to discuss, so you don’t forget anything.
Wood advised starting by explaining what inflation means. This does not have to be an economics class. She suggested telling them that in simple terms that inflation means paying a higher price for the same goods. Give some simple examples that everyone will understand. For example, sneakers that cost $100 last year cost $109 this year. Kids of all ages will be better able to understand why the family must adjust their plans when they understand inflation, she said.
• Be frank. Tell the family that you can no longer afford to do what you had planned, said Wood. Be prepared for disappointment, but try to keep emotions out of the discussion. It is important for families, especially kids who are just learning about budgeting, to learn to be flexible. Sometimes your goals must shift, Wood emphasized.
• Come up with an alternate plan. Provide your family with some options, but don’t try to fix the problem alone, advised Wood. Ask your family for suggestions. Have them do some research and get back to you about some alternatives activities that may be low-cost or free. If you can afford to do some of the planned activities, but not all, then ask them to make suggestions about what parts of the plan to keep and what parts to cancel. Are your plans flexible enough that you could extend the timing, so you have more time to save?
• Talk Budgets. Finally, Wood recommended having a larger conversation around the family budget and ways to tackle the rising cost of living.
Be careful not to overshare with children. However, they can still be involved in some aspects of the family budget. Have the family brainstorm ways to decrease spending so that saving for future family fun will be more manageable.
Still having problems stretching your budget? Are debts and the cost of living causing you and your family stress? You are not alone, said Wood. If this is the case, then it is time for some expert help, she urged.
Wood advised seeking help from a licensed insolvency trustee as they can help you find the right solution to put you on the road to becoming debt-free.
If you are looking for information to get you started, she suggested visiting mydebtfix. ca to read their blog with more tips on budgeting in today’s stressful financial environment.