Financial hardship: Introduction
As parents, you want to give your kids every advantage, but how much is too much? And do you really need to splurge on non-necessities if it’s putting a financial hardship on the family? It’s ironic to hear rich and celebrity parents say that they’re really trying to give their children a normal upbringing, without over-the-top excess; while on the other side of the fence, average, working families are making birthday parties that cost thousands of dollars. Does your child’s birthday party really have to feature pony rides, live entertainment and loot bags that cost a fortune? Clearly the days of BBQ and “pin the tail on the donkey” have gone the way of the dodo.
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Financial hardship: Strain on the family budget
Extracurricular activities can also put a strain on the family budget. How many extracurricular activities are your kids participating in? And what are these activities costing you? According to an Ipsos poll commissioned by Global News:
- Canadian parents spent an average of $1,120 to enroll their children in extracurricular, community and sports activities during the last school year
- For some, the cost of a busy after-school schedule was even higher, with nearly one in 10 parents shelling out over $2,000
- Many families are overstretched to pay for it all, with over half of parents saying the cost of kids activities puts a strain on family finances
- Nearly a third of respondents who were Gen X parents (between the ages of 35 and 54) said they had taken on debt to pay for things like dues, fees and equipment.
If your child is in a competitive dance program, costumes alone can cost thousands of dollars. Hockey is extremely expensive and the costs of competitive hockey are not for the faint of heart.
Financial hardship: Be realistic
Parents, you have to be realistic about what you can or can’t afford. Going into debt for birthday parties and after school activities makes no sense. Scale back. Make a birthday party that makes financial sense for the family, not the neighbours. Choose an after school activity with your child that they’ll enjoy and you can afford. Not only will you save a lot of money, but you’ll have some money to put away for your child’s education – a better investment in their future than a birthday party or extracurricular activities.
Financial hardship: Are you in too much debt?
If you’re already overextended and feeling the pinch of financial hardship, don’t wait until the situation becomes dire. Contact the Ira Smith Trustee Team as soon as possible. We can help you manage debt and put you on a path to debt free living Starting Over, Starting Now. Make an appointment today for a free, no cost, no obligation consultation. You’ll be glad that you did.
