Summer’s spending temptations abound: Longer days, travel and camp for kids are just a few of the places our money ends up during the warm months.
“We have expenses in summer that we might not have the rest of the year,” says April Stewart, a financial coach who helps high earners take control of their money and build wealth.
“A lot of times we tend to overspend when we aren’t intentional,” she adds.
Stewart and other money experts say there’s still time to reign in expenses this summer — or as you plan ahead for next summer. Here’s how:
1. Decide where you want your money to go
“Get clear on how you like to spend money,” says Keina Newell, a financial coach who specializes in helping single women.
You want to plan for not only your bills, but also the fun summer expenditures, she says. “Let’s look at how you want to spend your time, maybe engage in experiences, dining outside more.”
To help you reflect, she suggests looking back on what you enjoyed spending money on over the past year, and what you didn’t. Where did you get the best return on investment?
Those are areas you may want to prioritize in favor of other things.
Setting a budget for those fun activities gives you permission to spend and enjoy the season while also erecting guardrails so you don’t spend more than you intend, Newell says. It’s an approach she likes to call “permission budgeting.”
2. Map out (and plan for) big expenses
Knowing what you want to buy in advance gives you a chance to set aside cash to fund those expenditures.
You can use a budget spreadsheet to get started. Estimate upcoming expenses — including the ones that go up in the summertime — such as travel, family celebrations, air conditioning bills and summer camp expenses, Stewart says.
Stewart suggests including items like gifts for graduations and baby showers, along with the target spending amount, in your summer budget. Otherwise, she says, it’s easy to overspend by accident.
3. Build in a cushion
Even the best planners can get hit with unexpected costs in the summer months. Your air conditioning unit could break, your car could overheat or travel plans could go awry.
To prepare for those types of surprises, Stewart suggests leaving a cash cushion in your checking account. You could also create a separate savings account for these funds. That way, you won’t have to turn to credit card debt or other high-interest loans to fund emergencies.
“Create a summer savings account so you have money set aside,” she suggests.
While more savings are always better, even setting aside one or two hundred dollars can go a long way if you suddenly need the cash.
4. Just say ‘no’ to friends (sometimes)
If money is tight, your friends are probably in the same boat, Newell says.
Telling friends that you want to spend less could lead to a helpful conversation about ways to have fun on a budget. You could take turns hosting a potluck, skip a big group trip in favor of local fun or find a free concert instead of a ticketed venue.
Bringing up budgeting “doesn’t make you sound cheap,” Newell says, but helps normalize talking about money with friends, which can benefit everyone.
“It’s okay to say ‘no,’” Stewart says, when a friend asks you to spend money on an activity that you won’t enjoy.
“Set boundaries for yourself,” she says. And if an activity pops up that would require you to turn to credit card debt or dip into an emergency fund, then decline.
“If you can’t cash flow it, then it’s a no.”
5. Move on quickly from slip-ups
If you regret a splurge on a concert ticket or big night out, it’s OK — you can still recover and learn from the mistake.
“Your spending is all data,” Newell says. Review it and reflect on it to learn from slip-ups.
Cataloguing what happened so you can make a different choice next time turns the experience into something useful instead of just a sunk cost, she says.
6. Avoid spending triggers
When you reflect on your spending, you might notice certain triggers that cause you to spend more.
Late night doomscrolling might lead to online shopping, for example, so you could opt to skip the scrolling when you’re tired, Newell says.
Severine Bryan, an accredited financial counselor who helps women rebuild after divorce and other challenges, says she’s learned to be on guard against overspending on rainy days.
“I just want some comfort food,” she says, when the drops start falling.
Instead of ordering expensive takeout on a recent rainy day, Bryan opted to pick up soup at a local chain restaurant. It satisfied her craving in an affordable way.
Finding an affordable alternative to an expensive desire can keep summer spending in check, Bryan says.
“Sometimes it’s OK to get that thing at a lesser price point,” she says. “I’m not going to spend $50, but I will spend $10 to satisfy that craving.”
Similarly, if you want a summer vacation but it’s outside your budget this year, you could plan a fun staycation instead, Bryan adds.
“We want to find a nice sweet spot where you’re enjoying your life but with a goal in mind.”
7. Seek out free fun
The upside of summer is that it comes with many free activities, Bryan says. Local parks, libraries and community centers often offer free entertainment, including volunteering opportunities.
“Not only are you enjoying yourself, but you’re creating memories,” she says, for yourself and for others.
