By Aaron Allen, The Portland Medium
When it comes to financial literacy, budgeting, and personal finances, it is important that people have a long-term strategy that they continue to adhere to. One of the challenges that many families face during the summer is making sure that they don’t fully deplete their savings for summer activities.
Quincy Crawford, a Branch Manager with Chase, reminds us that even while we are enjoying the fruits of our labor, it’s still important to keep our eyes on the prize. And as you plan the summer schedule for your family, you might discover you’re juggling more expenses than just a trip to the beach.
“With summer, you have activities, warm weather, longer hours of daylight, and you are planning your summer itinerary, juggling more expenses,” says Crawford. “We are talking about unexpected summer expenses that can impact your budget if you’re not careful.”
According to Crawford, some of the common summertime expenses that you should be aware of and include in your budget are:
Childcare and summer activities: Many parents have to make plans for their younger children when they’re out of school.
“For parents, there’s the cost of day camps or other childcare,” says Crawford. “Even that short beach trip can be costly after paying for gas, food, and maybe a souvenir.”
Home maintenance: More time at home means, for example, more air conditioner use, which can drive up your utility bills.
“You also have home maintenance, meaning more time at home means increases in air conditioner use, which can drive up your utility bills. Your water bill can increase in order to care for your lawn or garden. Some like to do home beautification projects during the summer, but everything comes with a price.”
Travel: Most people will save in advance of a big trip, but it’s easy to get caught off guard by how much money you can spend at less costly local attractions as well.
“Another big-ticket item for the common summer-specific cost is travel,” says Crawford. “Most people do save in advance for the big trip; however, it is easy to get caught off guard by how much can be spent even at less costly local attractions. So, if you go to your county fair, for example, you should prepare to shell out more than you expected for a few rides and games. And if you are taking longer trips, the cost of gas, lodging, and meals certainly will add to your expenses. Even with the best advice in planning, people find that they end up spending much more than they envisioned doing things that they enjoy.”
According to Crawford, saving for summer and knowing your savings timeline is key. Think about when you’ll need to start saving for summer costs and put aside extra money as early as possible if you have that option. Also, consider making a special budget for summer that includes some of the expenses listed above that apply to your lifestyle.
Crawford also spells out some budget suggestions that include:
• Figure out the largest costs of your summer trip first and decide your bucket list “must-haves.” What experiences are most important when you’re making your itinerary? Budget for airfare, hotel, food, and your dream excursions, and cut back on anything else that’s outside your budget.
• Check out freebies: Museums are often free on certain days in the summer. Plan a short day trip around those dates.
• Look for lower-priced or no-cost children’s daytime programs offered through local recreation centers, park districts, libraries, and school districts.
• Input summer-specific expenses in an online budget calculator. If you’re already doing an annual budget, make sure to add these additional, summer-specific expenses so you know what to expect when it’s time to pay.
The one thing to remember is that there are four seasons in a year, and Saving for Summer is an example for families to follow in their financial journey. But like most families, your budget covers the whole year, and Crawford emphasizes how important it is to remain focused and vigilant on your budgeting as a whole and prepare for future spending and saving.
“If you are doing an annual budget already, make sure you add your additional summer-specific expenses so you know what to expect when it’s time to pay,” says Crawford. Ultimately, planning ahead of time and knowing what costs you’ll face allows you to adjust your budget accordingly, which will help you enjoy your summer plans without worrying about how you will afford them, which is a huge concern for a lot of people.”
By utilizing these budgeting blueprints and the resources your local community Chase financial advisors provide, individuals and families can build better budgeting habits, understand their spending habits, and ultimately reach their goals.
