The sun is shining, Memorial Day is right around the corner, and we are all working to get rid of those winter blues. However, this time of the year the temperature isn’t the only thing rising. From epic outdoor escapades to beachy retreats and everything in between, summer has this magical way of luring us into loosening our purse strings.
I was chatting with a client a few weeks ago who commented on the previous weekend he and his wife had a brunch with friends that had come into town, an outdoor wedding, and still managed to sneak in a golf date to have some quality time together. Our conversation had me thinking about the way in which we all get a little more carefree as the summer starts. There’s a lot more dinners out, outdoor activities, and of course a summer vacation (or two).
One thing I always encourage my clients to do is to get familiar with their spending and how it changes during the year. We typically always look at the big things like the holidays and birthdays. However, the conversation I mentioned earlier got me thinking about our spending patterns as a society.
Of course, the researcher in me began digging in. After pouring over research, news articles, and even a few consumer blogs I was amazed at how much information there was around our summer spending habits. According to an article published by The Motley Fool, 52% of Americans see a spike in their spending during the summer months.
So what do we do with this information? To start, look at your own spending habits from the last several months and see how they compare to money choices during the summer months of previous years. You can drill down a little further and see which categories you’re spending more in. Most likely, it will be areas like travel, eating out, and you may see a spike in the cost of child care/ children’s activities. From there, make sure you are accounting for this rise in spending. Some consumers like to set aside additional funds during the rest of the year so when the warm months roll around, they are prepared for these expenses, and it doesn’t send them spiraling off course.
As we head into summer 2023, I hope it is one filled with memories and unforgettable experiences. During these months take note of your spending habits as the season changes. With this information you can prepare your wallets for the summers to come.