By Jasmin Brown - Licensed Insolvency Trustee

BDO First Call Debt Solutions

Don’t Let Summer FOMO Derail Your Family Budget

Jul 16, 2019 | 9:52 AM

How is your family budget holding up this summer? If money is tight or you are struggling with debt, this time of year can be challenging. For parents who are already juggling multiple financial responsibilities while raising a family, summer can be especially daunting.

It is so tempting to splurge on your children when the warm weather arrives. A family vacation, a new bike (or two), or even a few extra take-out and restaurant meals can sabotage all the effort you made so far this year to try and keep your spending and expenses in check.

Is FOMO to blame?

If you are on Facebook, Instagram or Pinterest, you may be able to blame at least some of your summer spending desires on FOMO, also called “fear of missing out”. Think of it as the current version of “keeping up with the Joneses”. Even the most well-intentioned summer budget can be derailed by those photos and posts by family and friends depicting their fabulous summer adventures. It is only natural to want to be part of the fun.

The problem is, summer is already expensive for families. In one Bank of Montreal survey, half of Canadian parents admitted they spend the most money during the summer — not just on social outings, but also on basics like groceries, gas and child care. If you want to enjoy the rest of your summer without blowing your budget or adding to your debt, here are a few strategies that may help.

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Take time for a reality check

Try to step away from social media for the next few weeks. Most of the content we consume on social media does not reflect reality. Those photos or posts are a moment in time, and they rarely include vital information such as whether that amazing experience was affordable or not. Or whether they will be facing a large credit card balance at the end of the summer.

Talk to your school-aged children about needs and wants

Managing feelings of FOMO can be tough at any age. Kids often want what their friends have. If there is no room in your budget, offer a simple explanation of needs vs wants. Explain how certain financial responsibilities, like paying down debt, saving for emergencies or contributing to RESPs, have to come first.

Involve your kids in making summer plans

If your summer budget is tight, put your heads together and share ideas for inexpensive fun — like backyard camping, a picnic in the park, neighborhood Olympics, or a bike ride to get ice cream. Teaching your children that having fun does not have to mean spending a lot of money is a valuable money lesson for life.

One more thing to consider as you plan the rest of your summer: if you are a parent, you know that time often flies by more quickly than you’d like. Labour Day will be here before you know it, and with that is the start of another long list of family expenses – back-to-school, extracurricular activities, Halloween, children’s birthday parties, family gatherings and the holiday season. Try to remember that whatever you spend this summer is just a part of your year-long financial plan.

How are you planning to avoid summer FOMO? Join our conversation on Facebook or Twitter. #SummerSpending #DebtSolutions