It’s summertime and the living is expensive
Summer isn't for saving; it's the season for spending.
This year, more than half of Canadians surveyed for a Bank of Montreal poll admitted their summer habits have negative longterm effects on their savings. One quarter say they spend themselves into debt, another 27 per cent dip into savings and 13 per cent forego saving and debt repayment to have fun. Millennials, a Tangerine survey shows, were more likely than other groups to overspend on food and beverage (63 per cent) and outdoor activities (43 per cent).
“People have a lot of pent up socializing to do,” says Gail VazOxlade, author of Money Talks. “(People splurge on) the bicycles and the barbecues and the outdoor patio furniture because people are desperate to get out and enjoy the summer. They have a devil-maycare attitude about what they're spending to have a good summer. ”
Whether you're spending on canoes, landscaping or vacations, here are some of the common spending traps summer sets for us — and how to mitigate them.
YARD MAINTENANCE
If you do your own landscaping and lawn care, you're going to save money. If you absolutely do not want to cut your own grass, consider hiring a neighbourhood teen.
Thinking about your yard as an ongoing project — and thus, ongoing expense — will help you control how much it costs.
“To me, the garden is a work in process. I will decide what I will do now and what I am prepared to wait to do,” says Vaz- Oxlade, who devotes $100 a month in her budget to her garden and spends the $1,200 in the spring.
BUYING BIG STUFF
Seasonal items such as patio furniture will go on sale later in the summer; however, your choices will be limited by what is left in stock. If you're looking for bigger ticket items such as water skis or furniture, consider buying it used. If you don't immediately find what you're looking for online, set up a Kijiji alert. Comb the house for things you can sell to recoup some cash.
SUMMER CAMP FOR KIDS
First, determine how much you can spend to send kids to camp. Then decide, with your kids, where and how to divide that sum. (Don't forget to budget for extra gear, etc. that you may need for the camp.)
Some camps offer a siblings discount. Also, many have early-bird or return-camper discounts. If you can't afford the entire cost upfront, ask if the camp has a payment plan. Don't forget to keep your receipts for tax time.
Look for free or low-cost programs run by libraries, community centres or religious organizations.
VACATIONS
The key is planning, Helkie says. Search for resorts or hotels or restaurants that offer free promotions for kids. Do a search for Groupon deals or coupon codes for attractions. Consider visiting hot spots such as Arizona or Florida, which can be cheaper in the summer, or explore your own country. Opt for a road trip and find accommodations with a kitchen through Airbnb, VRBO or Homeaway.com.
STAYCATIONS
People think that by doing a staycation, they won't be spending money. You need to have a budget for this as well. Keep a calendar of events that you want to enjoy with the family and the associated costs.
MAKING MEMORIES
Barbecues, concerts, weddings — the events add up, but making lasting memories doesn't have to mean creating lasting debt. It's about making choices: saying “no” to something so you can say “yes” to something else, Helkie says.
It's never too late to start saving for your good times. It could be as simple as putting aside every $5 bill you see in your wallet. Even better, set up an automatic transfer every payday for summer expenditures.