Now is the Time to Plan Your Debt-Proof SummerMar 28, 2018
If spring break is the opener, then summer vacation is the main event. The spending questions parents face during March break can help them better prepare for the summer break and at the same time help them avoid debt in the process.
All parents know that expenses add up during these breaks. According to a BDO poll from 2017, eight in ten parents said they would spend an average of $600 on March break activities. For a generation of working parents needing help with debt, this isn’t a small sum. It’s not surprising that the same poll found that 40 per cent of respondents would take more than a month to pay off their spring break debt.
However, these issues only repeat themselves in the summer months. So, what can you do now to avoid needing debt relief in the future? By using this time off to start planning for the long summer ahead and spending wisely during spring break.
Start by planning for higher expenses in your summer budget. Groceries and air conditioning can ramp up monthly costs during the hot months. Rising interest rates can also affect what monthly debt payments look like. Start mulling these summer changes by creating a budget over spring break. The app You Need a Budget can help you with that as it allows you to set goals and make more purposeful spending decisions, leading up to summer.
Find opportunities for new work, or unused items to sell. Many parents have opportunities to sell off gently used electronics or other items that kids might not be using anymore. If the old video game system is collecting dust, a quick sale online can help boost what you have to spend in the summer.
These are just a couple of ways parents can start planning for the summer months. Rather than worry about debt this spring break, start creating habits that will work in the long run. This way, you’ll have more success sticking to your debt relief plan when summer comes around.
To learn more about how to plan a debt-proof summer, check out our podcast as BDO Licensed Insolvency Trustees discuss more ways to take stock of consumer debt, more resources for parents and kids, and summer planning.