When I think about summer, I think about tropical vacations, relaxing by the pool or at the beach and outdoor activities such as barbecuing or riding bikes. Often though, summer can be a time when people feel financial stress to pay for these activities.
Summer is supposed be a less stressful time when people can relax and rest from the hustle and bustle of the previous school year or the stresses of winter and spring. Adults should be excited about the vacations they have been dreaming of or the extra time they can spend with their children.
However, a recent survey by the Harris Poll for the American Institute of Certified Public Accountants (AICPA) indicated 59 percent of U.S. adults feel the financial stress of the summer matches or exceeds the holiday stress at the end of each year.
Parents can feel an increase in financial tension due to summer activities for their children who are out of school. Between sports camps, day camps, summer day care and other activities, parents are required to spend more to keep their children occupied during the summer months.
To guard against excessive summer spending, some experts warn against using credit cards to finance summer activities.
“By using dollars instead of plastic, consumers are much more aware of their outgoing expenses,” said Ernie Almonte, chair of the AICPA’s National CPA Financial Literacy Commission. “When you pay for a vacation with a credit card, you come back with more than photos. You come back with debt, and your vacation could wind up costing considerably more than you had budgeted.”
The AICPA’s 360 Degrees of Financial Literacy website has the following tips to get started saving for or reducing your upcoming expenses:
• Create your summer budget now. Get out your calendar and make a list of planned activities and related costs, registration fees, uniform costs, amusement park entry fees, pool memberships, etc. Knowing how much you need now will give you a goal and keep up motivation to keep saving.
• Avoid the weekend rush when you can. Plan midweek adventures because everything from amusement parks to golf outings are usually less crowded and cheaper mid-week. Hotels and rental cars often are discounted during weekdays.
• Hunt for discount coupons. Never pay full price for water and theme parks or other entertainment. Look for deals in the form of discount coupons at supermarkets, convenience stores and even hotel brochure racks. The savings can be 25 percent or more.
• Look for freebies. When choosing accommodations for your vacation, consider the following to reduce costs: Does the hotel offer complimentary transportation to the airport, restaurants or local attractions? Does the rate include breakfast? Having a meal included can save you a bundle, especially on longer trips or family vacations.
• Clean out and sell. Sell unwanted items on eBay or Craigslist or have a garage sale. This helps fund the vacation and gets rid of clutter.
While these are good suggestions, you may find you need to be realistic about your finances. Look at the budget for your vacation and see how it fits into your family’s annual financial plan.
If you don’t have the money for the vacation you want, what can you afford? Can you go away for fewer days? Economize by staying with friends or family? Or maybe you need to plan a “staycation” this summer.
A “staycation” isn’t the same as taking time off from work to do projects around the house. It is a way to take advantage of free lodging and kitchen facilities so you can use your available cash for fun activities.
Savannah is a tourist destination, and there are undoubtedly many tourist sites you and your family have never visited. Let everyone in the family list things they want to do – a museum, the beach, going out for breakfast, bowling, a water park. Rule out any that would break the budget (and explain to your children why.)
Decide what you are going to do, making sure to include items from everyone’s list, and then go have fun. Be sure to ignore the chores; you wouldn’t be doing them if you were traveling.
If you want to be able to travel next summer, the time to start planning is now. Create your budget so you know how much you need to save. Then divide the total by the number of paychecks between now and the vacation and arrange for a way to set that money aside every pay period.
You may even want to open a separate “vacation” savings account to allocate vacation funds so they are separate from other savings. With cash savings to pay for your next summer vacation, you’ll be able to enjoy it stress-free.
Harrison Enfinger is a staff accountant in the audit department at Hancock Askew & Co., LLP. He can be reached at 912-527-3325 or henfinger@hancockaskew.com