Do you talk to your kids about money? We do.
We’ve had times where money was tight, especially during summer months when expenses are through the roof. We’ve taking the opportunity to be honest with our kids about how much things cost and allowed them to be part of the decision-making process. Sometimes it means that they can’t go to the $500 a week camp that their friends are going to but it’s all a chance to help them learn the tough choices we all have to make, when it comes to money. Staying on budget in the summer is very challenging!
Another way we engage the kids in our money-making decisions is by giving them an allowance to start to make their own choices about money decisions. We often remind them to bring their wallets to family outings, on vacation in the summer or even to their camp “tuck shop” to buy a treat. I love watching both boys as they process the pros and cons of taking a crisp bill out of their wallets to pay for something they want or the seeing the agony of deciding to save for something else bigger.
A recent study done by TD Bank, found that 55% of Canadian parents with children under the age of 18 take on additional costs during the summer; in fact, 71% of them spend up to $999 per child.Our family has already booked and paid for the summer camps to keep the kids entertained and busy while Paul and I go to work every day. This study inspired me to calculate our own summer expenses and I was blown away to realize that we had over $2500 in summer costs including; summer camp, summer hockey leagues and tutoring. This is not even considering a family vacation or getaway or the fact that we have to pay for rep hockey this summer and fall! When you consider that our summer is only 2 months in Canada, that’s a tremendous expense!
Tips from TD for Budgeting for Summer Activities:
Half (51%) of surveyed parents found budgeting for these additional summer costs stressful, so after speaking with Linda MacKay, Senior Vice President, Retail Savings and Investing and Shirley Malloy Associate Vice President, Acquisition & Sales Management from TD Canada Trust I have compiled some tips on how to avoid the financial heat wave summer can bring:
- Get a season’s pass for your favourite family experience in the city – our family LOVES our Canada’s Wonderland pass. For $70 each, your family can enjoy the park and waterslides all summer! Be sure to eat before you go and you won’t have to open your wallet once! Other ideas are the AGO, ROM or the Toronto Zoo.
- It’s never too late to save! Even if you haven’t prepared for this summer’s expenses, start saving early for next year by putting a little money away each month into your TFSA (Tax Free Savings Account).
- Shop around for camps that are run through the city or the school board. They are often less money and just as much fun!
- Check your rewards balance – redeem some of your loyalty rewards, such as points from your First Class Travel Credit Card, to help fund family activities and travel.
- Don’t schedule the kids to death! Kids just love the FREE fun they can have at the park and with their friends in the neighbourhood, so our boys have chosen ONE summer activity, 3-on-3 hockey, to keep them busy one night a week and stick to our budget.
- Try some online budgeting tools, like the ones at tdcanadatrust.com, to determine how much you can save at the end of the year, with just a few dollars a week, you could have your summer paid for with savings!
- File your receipts – some summer costs could be tax deductible as a child care expense or under the child fitness tax credit on your tax return.
- Investigate the newly increased and expanded UCCB (Universal Child Care Benefit). The new enhancements include kids age 7-18 (it used to stop at age 6). All families will receive a cheque this summer – a nice bonus to cover summer costs or save for the fall programs for the kids!
How do YOU stay on budget during the summer? Any tips to share?
This post has been sponsored by TD Canada Trust, but the opinions are my own. For more information, please visit http://www.tdcanadatrust.com.