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Investor and entrepreneur Lisa Dudson shares her advice on festive season spending.
Summer is a time for relaxation, sunshine and a chance to spend quality time with family and friends. But as the warm months roll by, so, too, can the expenses ramp up: holiday adventures, festive feasts, summer sales, and, eventually, the dreaded back-to-school costs. Without a plan, it’s all too easy for a carefree summer to become a costly one. Here are some tips on how you can make the most of the summer while keeping your finances intact and ready for the challenges of early 2025.
Start with a summer budget
Before you break out the jandals and sunscreen, take some time to plan a realistic budget. The goal isn’t to cramp your summer vibe but to ensure that you can enjoy yourself without financial regret. Break your budget into two main parts:
- Holiday and festive spending: gifts, food, holiday trips and entertainment.
- Upcoming 2025 expenses: school uniforms, stationery, sports fees and other early-year essentials.
Be honest about what you can afford and allocate a set amount for each category. If you’re unsure where to start, use your bank statements from last summer as a guide. Factor in a little extra for unexpected costs.
Rethink your gift giving
While it’s natural to want to shower loved ones with presents, it’s also wise to avoid excessive spending. Consider:
- Homemade gifts: jams, baking, crafts or a framed photo can be more meaningful than expensive gadgets.
- Experience gifts: Instead of giving material items, think about gifting experiences such as a picnic day, a museum pass or a cooking-class voucher.
- Secret Santa: if you have a big family, suggest a Secret Santa. It’s fun, reduces the pressure, and allows everyone to focus on one big gift rather than several.
Track your spending regularly
It’s easy to let budgeting slip during summer when life feels more relaxed. But keeping an eye on your spending doesn’t have to be a chore. Consider using a budgeting app or simply setting a weekly reminder to review your bank transactions.
Even a quick glance at where your money is going can make a huge difference. You might notice patterns, like that extra round of ice creams each week, that can be adjusted before they snowball into a January debt surprise.
Make the most of summer sales
The summer sales season can be a blessing or a curse. The trick is to approach it wisely. Whether it’s Boxing Day deals or summer clearance events, have a list of items you genuinely need (or will need soon) and focus on those purchases.
For example, if your child needs new school shoes or uniforms, use these sales to tick off back-to-school necessities. You can also look out for sports gear, lunchboxes or tech items that often feature prominently in summer discounts.
But stay clear of impulse buys! Just because it’s on sale doesn’t mean you need it.
Plan holiday activities in advance
Holiday outings can quickly eat into your budget, especially if you’re caught without a plan. Instead, research free or low-cost activities that are just as enjoyable as their pricey counterparts. Some ideas include:
- Beach days: you can’t go wrong with a day at the beach. Pack a picnic, take the togs and enjoy the free fun.
- Community events: check local council websites or community boards for free summer events such as open-air movie nights, concerts and festivals.
- Day trips instead of holidays: if a week-long holiday isn’t in the budget, plan a few day trips. You still get the joy of a change of scenery without the cost of accommodation.
Prepare for back-to-school in December
Come late January, the last thing you want to face is a shopping list of school supplies with a depleted bank account. To ease this burden:
- Start buying essentials early: if you see a good deal on stationery or lunchboxes in December, snap it up.
- Spread the cost: If your child needs a new uniform, consider buying parts of it over time, such as getting the shoes in December and the shirt in January.
- Consider second-hand: many schools and community groups offer second-hand uniforms and supplies, which can be a huge saving.
Set aside a January emergency fund
It’s wise to have a small emergency fund tucked away for unexpected costs that often appear during the start of the school year. Aim to save an extra $100–$200 over the summer that’s strictly for unplanned expenses. You don’t need to cut back drastically to build this fund. Little changes, like swapping a takeaway meal for a BBQ at home, can add up over time.
Think long term, too
While summer budgeting is focused on the next couple of months, it’s also an excellent opportunity to review your longer-term financial goals. Are you saving for a holiday next year? A home deposit? Start by using any spare funds wisely, even if it’s just a small amount set aside each week. Every little bit counts.
Summer is a time to recharge, but with a little planning, you can also keep your finances on track. The key is to be proactive and plan your budget, anticipate expenses, and keep an eye on your spending. With a bit of preparation, you can enter the New Year feeling both refreshed and financially confident.
Lisa Dudson is an investor, entrepreneur and author of eight bestselling personal finance and property investment books. She has been a media commentator on financial issues for more than 20 years and is known for pragmatic, meaningful and easy-to-understand financial advice. She is a director and shareholder of Saturn Advice and National Capital and provides financial and property advice through her consulting business www.acumen.co.nz Lisa’s advice is of a general nature, and she is not responsible for any loss that readers may suffer from following it. She cannot correspond directly with readers or give financial advice.