According to the new survey by TD Ameritrade, 52% of parents of children under 18 years of age spent more than they planned to this summer. So, if you’re a parent who found yourself going over budget, you are not alone!
In the study, it is said that the average amount of debt that summer amounted to $1,960 for this year. On the other hand, parents that have children over 18 years of age have an average budget of $563.
The main reason the debt has reached this high, according to the parents, is that they want to treat their children and families this summer break and 55% of the respondents stated this reason. On the other hand, another 23% felt like they were pressured to spend higher amounts of money.
On another part of the survey, the majority of the parents answering those questions state that the summertime is much more costly compared to the winter holiday season.
In a statement, the senior manager of retirement at TD Ameritrade, Dara Luber, says, “Parents realize they have 18 summers with their kids before they head off to college. It’s all about experiences now and not just buying them things.”
Moreover, according to the respondents who are parents, the primary budget killer was the summer vacation. It costs about $2,027 on average.
On second place, the budget was spent on summer classes and tutoring. This amounted to around $1,207. On the third place, parents also spent money on quick vacations without their young ones. On average, this costs around $1,059.
Dana Luber adds that parents should focus on money-saving techniques to catch up on their debts.
First, plan your vacation in advance. Typically, planning vacations earlier would mean you can get more deals and lower prices. A few months before summer, think about where you would want to go and discuss it with your partner and the kids. Check possible travel plans and if it would be cheaper to fly or drive.
Second, set a specific budget. Decide on things you can spend that are within your means. Also, look for good deals and economize.
Finally, you should opt for going with cheaper alternatives. There’s no need to go far to enjoy your trip. A staycation could still be an excellent option for family time and making valuable memories together.
This survey done by TD Ameritrade was completed online in partnership with Harris Poll in August 2019. The total respondents were 1,015 US Adults from 23 years old and up with a minimum of $10,000 investable assets.