Summer is a time of fun, relaxation, and, all too often, money mistakes. With the lure of its tempting activities, it’s easy to let your guard down and start spending more than you should. Find help by learning about the money mistakes that can easily creep up this time of year and avoid them.
Not Creating a Summer Budget
Before you go out and spend your hard-earned money, create a budget that outlines your income and expenses, and set aside some money for fun activities. This tactic will prevent overspending on impulse purchases and racking up unnecessary debt.
Overspending on Summer Fun
Overspending will naturally happen if you don’t have a budget or if you’re overconfident in your budget. Consider cutting back on activities like going out to eat, movies, and concerts to save money. Research venues that offer discounts or free admission during certain days and times so you can still have fun without breaking the bank.
Missing Payments
Missing payments and forgetting about existing debt can be easy during this time of year, especially if you’re on vacation or out of town. Don’t let yourself fall into the trap of letting your payments slip away. Set up payment reminders to keep track of any bills that need to be paid so that you don’t have to worry about dealing with fees or a damaged credit score.
Not Taking Advantage of Summer Deals
Summertime is a great time to save money because deals and discounts often exist. Take advantage of these specials by looking for sales, using coupons, or searching online. These methods can help reduce your expenses without cutting back on the activities you enjoy doing in the summer.
Cooling an Empty House
The summer heat can be unbearable, and the temptation to keep your air conditioning running all day can be strong. But leaving a cool house while you’re away is not a good idea. Instead, try setting your thermostat at a higher temperature before leaving, or use energy-efficient curtains or shades to help block the sun’s rays if you plan on staying in your home for an extended period.
Leaving Electronics Plugged in
Leaving electrical items plugged in, like TVs, gaming consoles, and other electronics, when you’re away can add up to an expensive electricity bill. To save money on energy costs, unplug these devices when they are not in use or switch them to energy-saving mode. You can also use smart plugs to control devices remotely and turn them off when you forget.
Skimping on Sunscreen
You want to enjoy the summer sun without worrying about sunburns or skin cancer, so don’t save money by skimping on sunscreen. Invest in quality SPF 30 or higher sunscreen and use it liberally. It’s much cheaper than dealing with medical bills due to prolonged exposure to UV rays.
Neglecting Maintenance Costs
Summer is a great time to have a car or home maintenance check, but many people forget about this in their rush to enjoy the warm weather. Neglecting regular maintenance on your vehicle can lead to higher repair costs down the road, and skipping checks on your air conditioning unit will result in an energy bill shock during those hot summer months.
Setting the Water Heater Too High
The ideal water temperature for hot showers is between 110 and 120 degrees Fahrenheit, but many people set their heaters higher than this. This setting can significantly increase your energy bill in the summer months, so if you want to save money, consider setting it lower or installing an insulation blanket.
Buying a New Air Conditioner Without Researching
The summertime brings hotness, so you might want to buy an air conditioner to keep your body cool. But before you do, research the product you intend to buy, as a poor choice can cost more money in the long run. Read consumer reports or check with friends and family to ensure you get an air conditioning unit that is reliable and efficient.
Overpaying for Childcare
During summer, your kids are most likely out of school, and to properly take care of them, you may need the service of a nanny. But it is easy to overpay for the service without realizing it, so research the market rates for nannies in your area and weigh up other options like shared care with friends or family.
Spending a Lot on Summer Activities for Kids
The summer holidays are a perfect time to explore hobbies and activities with your kids, but it doesn’t have to come with a hefty price tag. Activities like park or beach trips are free; you don’t have to spend money on expensive camps or classes. Instead, create an activity list filled with affordable options for your children.
Choosing a Vacation Over a Staycation
When summer rolls around, many people automatically start planning trips abroad. But the cost of these trips can be high, so if your budget is tight, consider opting for a staycation instead. You don’t have to travel far to make the most of summer — look for activities in your area that you or your kids will enjoy without breaking the bank.
Overpacking When Flying
Flying during the summer is usually more expensive because it’s the peak tourist season. One way to save money on this cost is by packing light and only taking what you need. Airlines will charge extra fees for luggage and overweight bags, so pack only the essentials or look into shipping your bigger items instead of bringing them.
Saying Yes to Car Rental Upgrades
Car rental companies love to offer customers upgrades when they book their vehicles, like a better car model or extra features like GPS. While these options can be tempting, it’s worth noting that sometimes they cost more than the base rate, and you may not need them at all. Before saying yes to any upsells, determine whether they offer you the best value.
Using Debit Cards to Reserve Hotel Rooms
When booking a hotel, some people prefer to use their debit card as they don’t have a credit card. While this may seem like a good idea, many hotels put an authorization charge on your account once you book. These charges can take days to clear and are non-refundable, so check with the hotel in advance to avoid any unwanted fees.
Not Budgeting for Summer Weddings
Saying yes to a wedding invitation can be exciting, but it also means you’ll need to budget for gifts, travel costs, and any other expenses related to the event. Before the summer season starts, list all the weddings you plan on attending and set aside an amount of money that will cover all your expenses. That way, you won’t get stuck with a hefty bill you weren’t expecting.
Using Public Wi-Fi When Traveling
When taking a summer vacation, you may be tempted to use public Wi-Fi networks to save on data costs. However, these networks are often unsecured and can expose your personal information to hackers. Disconnecting from the network or enabling a virtual private network (VPN) when using public Wi-Fi is best. That way, your data is kept safe and secure.
Not Freezing Your Gym Membership
Many people make the mistake of keeping their gym membership active throughout the summer or canceling it entirely. This mistake results in either a hefty monthly fee or an upfront fee when you decide to rejoin. To save money on gym costs over the summer, freeze your membership until cooler weather comes around and opt for an outdoor activity instead.
Not Waiting for End-of-Season Sales
If you’re looking for clothes or furniture, waiting until the last few weeks of summer can save you money in the long run. Retailers usually drop prices when the summer season ends, so instead of buying items at full price during summer, you can find some great deals and discounts that come with fall sales.
Not Taking Advantage of Sales Tax Holidays
Sales tax holidays occur during the summer and are a great opportunity to save money on big-ticket items like electronics or furniture. These days, retailers don’t charge sales taxes for certain purchases, so you can walk away with significant savings. Research your state’s sales tax holiday dates and plan your shopping around them.
Buying Produce That’s Not in Season
Fruits and vegetables that are in season are always cheaper than those that aren’t. During summer, the price of products like red peppers, tomatoes, and watermelons is much lower because they’re grown during the hot months. So if you’re looking to save money on groceries this summer, stock up on seasonal produce whenever possible.
Paying Full Price for Entertainment
Summer is the perfect time for movies, concerts, and other forms of entertainment. But it doesn’t have to cost a fortune — take advantage of coupons, discounts, or reduced-price days at your local movie theater. You can also check online ticketing websites like Groupon for deals on events in your area.
Ignoring Free Entertainment Options
Even though summer can be expensive, there are lots of free entertainment options available. Local libraries and museums offer free admission days and free activities for kids and adults alike, like story time and book clubs. Many cities and towns offer free outdoor movies or concerts that you can enjoy.
And don’t forget to take advantage of all the outdoor opportunities, like parks, beaches, and hiking trails; you can find plenty of activities that won’t break the bank.
Not Checking Your Bank Statements
Summer is when you must be wary of scams because of a lot of financial transactions you make, so check your bank statements regularly. This review will help you identify any unauthorized charges that may appear on your statement and spot any suspicious activity. If anything looks suspicious, contact your bank immediately.
Charging a Vacation to a Credit Card Without Plans to Pay It Off Immediately
If you’re planning a summer vacation and don’t have enough cash saved, charging the cost to your credit card may seem like a good option. But remember to check the terms and conditions of your card before you book. Some cards have higher interest rates for purchases made outside the country, so if you plan on using your card abroad, ensure it won’t cost you more in the long run. And always remember to pay off any balance as soon as possible to avoid interest charges.
Not Being Flexible With Travel Plans
When traveling during the summer, be flexible with your plans. Prices fluctuate daily, so try to book your flight or hotel room on days that give you the best rates; this will help you save money in the long run. You can use comparison websites like Skyscanner or Expedia to help you find the best rates on flights and accommodation.
Waiting Until the Last Minute to Book a Flight
When booking flights, the earlier you book, the better. While waiting until the last minute may seem like a good idea for budget travelers, it usually increases prices. Airlines often increase fares as the departure date approaches, so plan your travel well and book your flight early if possible.
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