3 Reasons Your Family Needs a Debt Free Summer PlanMay 12, 2018
With limited months to enjoy the outdoors and travel easily, it’s no wonder so many Canadians spend more in the summer months. All that anticipation and exuberance can lead to carefree spending, and unfortunately debt, too. Here are three reasons you and your family need a plan for a debt free summer.
- Families already cost a pretty penny
Did you know that parents spend an average of $1100 per child on extracurricular activities just during the school months alone? With the cost of living continuously rising, the cost of raising a child can be staggering.
With all of those costs continuing to add up, it can be easy to feel like there’s no other option but to taking on more debt–especially when the debt can bring joy and positive memories to your kids.
But in the long run, taking on more debt will mean having to say “no” to other things your kids want or need in the months and years to come. If you don’t reduce or eliminate your debt, it can add more stress to the family finances later on.
- Avoid financial stress for the whole family
If you break your family’s budget this summer, it may not only affect your bank account, but your families’ stress level as well.
Whatever the economic or personal stress factors may be, kids pick up on what you’re doing, saying, and feeling.
Being honest with your kids about finances is a good thing. Summer vacation is a great opportunity to start by being open about what budgeting is, and why it’s necessary.
As a family, look for affordable (or free) activities. Having fun doesn’t need to cost a fortune. This list from Canadian Budget Binder can get the creative juices flowing.
If you’re able to build and stick to a budget as a family over the summer, your kids will learn a valuable lesson that will lay the foundation for financial success.
- Take this opportunity to teach your kids
Ultimately, all parents want their kids to be financially secure. And not just now, but when they’re out on their own, too.
One of the best teaching tools is being a good example. As a parent, you might know that it can be really difficult to stay on budget, and to avoid consumer debt. It’s hard to say “no” to yourself, and hard to say “no” to your kids, too. Take this as an opportunity to teach your kids that money doesn’t grow on trees and that when they ask for things, many long working hours are needed to pay for them.
Get your kids hooked on how money works and the rewards of avoiding debt by using online resources. Talk with our Kids About Money has videos and games that can help you discuss it all with your kids.
Pink and Blue magazine tackles the topic of how to get your kids on the “frugal bandwagon”. It’s a good guide to how to talk to kids and excite them about saving, rather than spending. You might find it reinvigorates you, too.
By the time back to school shopping season hits, you could be glad you didn’t go over budget over the summer.