Advice for a Frugal Summer

9 Tips for a Financially Sane Summer

Parents, the green season is upon us. Summer. And the "green" doesn't just stand for the leafy trees kids climb and the lawns through which they chase fireflies. It stands for cold hard cash. Kids cost money all year long, of course, but summer brings with it a slew of extra expenses: summer childcare programs, summer camps, extravagant family vacations.

According to Eric Tyson, financial counselor and author of Personal Finance for Dummies (Wiley, 2006), if parents aren't careful, they can easily find themselves living a summer lifestyle they really can't afford.

"Many people assume, 'Oh, it's summertime – of course we have to take a fabulous family vacation,' or 'Of course we have to send Travis and Kaitlyn to the same camp their friends are going to,' when, really, they can't afford it," Tyson says. "They may not think of it this way, but they're trying to keep up with the Joneses, or worse, the Joneses' kids – and they're harming themselves in the long run."

Tyson says overspending on summer activities and "stuff" doesn't do kids any favors. In fact, your conspicuous consumption may be teaching them poor money management habits, which sets them up for problems in their own financial lives down the road.

"Make this the summer that you rein in your spending and start teaching kids by example how to make smart financial decisions," Tyson says. "You may be surprised to find that, far from feeling that you're sacrificing, this is the most fun, fulfilling summer you've ever had."

Here are a few of his tips:

The way we spend our money and our time reveals our values, Tyson says. Actions really do speak louder than words – and your kids are listening. "You'd never say to your children, 'You can't have fun unless you spend a lot of money to have prepackaged experiences,' or 'Kids can't have fun hanging out with their families' or even 'It's fine to rack up lots of debt – to take a lavish vacation or put in a pool, for instance – even if you don't know how you're going to pay it back,'" Tyson says. "And yet, that's what kids hear when you make certain decisions about how you spend your summer."

His point? Really think about what's important to you – and what message it sends – instead of following the summer crowd.

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