7 Ways You’re Likely Going To Waste Money This Summer
Written by
Brooke Barley
Edited by
Levi Leidy
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Summer is a time for relaxation, traveling and carefree vibes. These can all lend themselves to overspending if you’re not careful. You can get yourself a bit of spending SPF by knowing what common traps consumers fall into during summer, so you don’t do the same.
Here’s what experts told GOBankingRates are some of the most popular ways people waste money during the summer — and cheaper alternatives to keep you out of the red.
Relying Too Much on Air Conditioning
You don’t have to be a meteorologist to know how hot it can get during the summer. You almost have to give in to the AC. However, this can lead to astronomical electric bills if you’re not careful.
Todd Stearn, founder of The Money Manual, recommends going a cheaper route that still keeps you cool. “Consider a ceiling fan. The wind-chill effect will make it feel four degrees cooler so you don’t need to run the air conditioning as much.”
Filling Up at the Pump for Road Trips
It’s unavoidable: You’re going to have to fill your car up with gas during the summer, especially if you’re trying to avoid high airline costs. Unfortunately, gas companies know how reliant consumers are on gas during the summer, so they raise their prices. Stearn says you can help cancel out these price hikes by getting a return on your investment. “Be sure to use a cash-back app such as Upside to save on fuel.”
Traveling To Trendy Destinations
Justin Albertynas says social media can make us think that only the places worth going to are the ones we see on our Instagram feed, like Santorini and the Maldives, but these places are incredibly expensive. Albertynas says you can find more economical places to go if you do the research.
“If Santorini is on your bucket list this year, better try Naxos, Paros or Milos. All of them are known to be cheaper alternatives [to] Santorini. The same goes for any other trending destinations: the luxurious Maldives can be changed by Fiji or Gili Islands, and San Diego, California, or Puerto Rico can be a good substitute for Hawaii.”
Blowing Your Budget on Vacation Amenities
In addition to saving up during the year and looking for the most affordable places to travel to, Stearn says you can use another method to get more bang for your buck when you travel. “If you have excellent credit you can take advantage of travel credit cards that offer perks like free checked bags on flights, free hotel rooms and more.”
Using Your Credit Card Too Much
You might be tempted to make the most of summer by putting all your expenses on your credit card, even if you don’t have the cash to pay it off right now. Kendall Meade, a financial planner at SoFi, urges you to plan ahead, and only charge what you know you have in your checking or savings accounts, so you don’t get stuck paying interest.
“A $5,000 trip that takes you a year to pay off at 20% interest could end up costing you a total of $6,000. That’s an extra $1,000 by charging it to a card and not saving the money up beforehand.”
Going Out To Eat
The weather is nice, and that patio seating looks pretty good every time you drive by your favorite restaurant, but those restaurant bills can get pretty high, pretty fast. “You might trade those swanky rooftop bars with their swanky prices for homemade cocktails and house parties or barbecues to keep your summer sizzling without burning your wallet,” Stearn recommends.
Paying For Expensive Activities for Kids
Going to the movies, the arcade, summer camp, amusement parks can all add up really quickly. Meade recommends searching for activities in your area that you can do for cheap or free. After all, the high price tag doesn’t necessarily mean the kids will love it any more. “Depending on where you live you may have access to a beach, lake, parks or even a splash pad that is free. Many places also have free movies or concerts in parks during this time of year you can take advantage of.”
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