How to Plan A Debt-Free SummerMay 30, 2018
With summer just around the corner our Licensed Insolvency Trustees (LIT’s) across the country talk about tips for planning a debt-free summer when the family budget is tight in this podcast episode.
Here’s an overview of we talked about:
What are some of the financial hurdles Canadian parents may expect to encounter this summer?
- Parents with children carry half of all the household consumer debt in Canada; meaning there are significant strains on their budget before summer even arrives.
- Summer is expensive. From child care costs to extra groceries, parents are spending more during the summer months.
- With school out, families may face child care costs that they don’t have to deal with during the school year.
What are a few of the summer spending tips our LITs have for parents?
Thoroughly review last year’s summer spending. It gives parents an idea of what extra expenses they might expect to face this year.
Part of that review should include taking the time to understand your debt situation. For example, have there been changes in your mortgage? Or have you started using a debt relief option like a consolidation loan?
Get a head start and create a summer budget to avoid budget shock when your discretionary spending starts to increase in the summer.
Plan out your summer activities. Bring the family together and brainstorm ideas for family outings and activities. Do your research so you understand any associated costs. This can help in determining what you might need to save for or what might need to get pushed aside.
Use your community’s activity guide — it can be a great resource for finding free or low-cost activities. The summer break doesn’t have to be defined by one big expensive vacation. Sometimes it’s making the most of summer on a daily basis that can provide relief for your debt and wallet, while creating memories that will last a lifetime!
Make sure to listen to the podcast to learn more about these summer spending tips and more advice and strategies from our LITs.