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BDO St Johns

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St. John’s, Newfoundland
A1E 0E4

(855) 839-2823

How to Steer Clear of Summer Debt

Summer is around the corner. As much as parents and families may be looking forward to the warmer temperatures, those extra expenses (and potential debt) that pop up at this time of year can be daunting.

The bottom line is, the summer months can be expensive. From extra groceries and gas to increased child care costs, expenses can quickly add up and can quickly add to your overall household debt burden.

Here are a few great tips that can help you mitigate summertime debt and enjoy the season without worrying too much about your finances.

  1. Learn from last year

Think back to the summer of 2017. Were you able to handle extra summer expenses and costs without adding more to your total consumer debt? If the answer is no, look at it as a learning experience.

Start this summer by writing down all the extra costs you encountered last summer. Now categorize each expense as either a want or a need. If you ended up spending more than you intended on wants, you’ll have a good idea where you can begin cutting back this year.

  1. Plan ahead

Using your calculations from last year, create a summer budget for this year. Remember to base your summer spending on a budget that fits your family, rather than the idea of what other families are spending on summer activities.

Do your best to stick to your budget all summer long. It helps to be mindful of your spending by trying to avoid too many emotional or impulse purchases.

  1. Don’t neglect your financial priorities

Did you make a few financial promises to yourself earlier this year? Did you set some financial goals? Whether it’s reducing the amount of credit card debt you owe or saving for your child’s education, your goals are something to work toward — even during the summer months. Keeping your goals front and centre this summer will help you avoid the temptation to overspend and avoid adding more to your consumer debt.

How do you plan to enjoy summer as a family without adding more to your household debt? Join the conversation and share your thoughts, tips and tricks with BDO St. John’s using the hashtag #Budgeting #DebtSolutions.

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