It’s summertime once more. The kids are getting out of school for break. Everyone is focused on the 4th of July holiday they’re planning to take, or not take, due to worldly circumstances. Yes, it’s hard to imagine that anything could interrupt the long-awaited summer trip. Still, with inflation, high-priced crude oil, and unreliable air travel at the top of everyone’s minds, some families are opting to skip their summer travel plans and do something closer to a “staycation.” While I sympathize with the situation, I find the philosophy of skipping vacation to be a very unhealthy and ultimately regrettable choice. Let me explain why.
Family Opportunity Costs – Skipping Vacation
As a family financial planner, I always aim to give my clients a clear financial perspective. But, funny enough, sometimes the philosophy they need cannot be derived from a spreadsheet with numbers and projections. I often find myself clarifying clients’ financial situations and questions by relating to their daily lives, which resonates more than red or black numbers ever could.
As people, we are extremely reactionary, impatient, and short-sighted – sorry, it’s just who we are as homo sapiens, and we have to do lots of training to not act on these types of panic-stricken instincts. I often get calls asking me if it’s best to sell, hold, jump ship, or reverse course – and 95% of the time, whatever current event that is causing so much panic is replaced by a different one the following week.
While not to trivialize the current challenges of the world market, I get that paying $5.00 a gallon of gas isn’t ideal; I guarantee skipping a trip’s worth of memories is an opportunity cost most parents would not want. Every financial decision has tradeoffs, but one not worth making is exchanging precious memories for marginal savings down the road.
An ingenious ad campaign by Expedia that premiered with the Superbowl hits the sentiment right on the head; “Will we look back on our lives and regret the things we didn’t buy or the places we didn’t go?”I couldn’t agree with Ewan more. Even if there are financial aches today, it’s worth having those memories with our children in the long run.
In ten years, our kids will not want to play ball, make smores, or run along the beach with us; we’ll never hold their fascination and enthusiasm as we do now, which is why these summer trips are priceless. How much do you think an 80-year-old would pay to go back and share those moments again with their kids? How much would you pay? I’m guessing it’s undoubtedly more than you would save with a few gas fill-ups over the 4th of July holiday.
What Qualifies as a Liveable Salary for the Middle Class?
Small Sacrifices Can Add Up
Listen, I understand everyone’s financial situation will be drastically different, and inflation will affect everyone differently. If you struggle with rising costs, you can still have a summer vacation with the family, and some small sacrifices can help make it happen.
Our family has fully embraced the path toward minimalism. We are decluttering and do not want more stuff with a goal to provide the children with experiences over possessions. I remember the family vacations and not the toys. Even within those vacations, I do not reflect on the places we stayed, but I remember our adventures.
If you’re used to boutique hotel accommodations, consider splitting your trip with another family and renting an Airbnb. Would you dare go camping with the kids? Cook more food on the grill and order less at the restaurant. Plan for an extended weekend when the rates aren’t as high. There are many ways to save, but doing nothing is the worst thing you can do. You remember the destination, not the accommodations.
Staying the Course
With sound financial strategies and foundations in place, the economy’s ups and downs do not have to impact your life’s plans significantly. What may feel like a tidal wave to the ill-prepared can feel like a gentle current to the prepared. Decades of savvy and conscientious decision-making are not undone by a summer of high gas prices or a year of the stock market taking a plunge.
As a financial planner in Boston and on the North Shore, I help my clients plan for the unforeseen but not live in fear of it.
Please call me if you’d like to discuss how I can help you reach your financial goals for today and 30 years from now.
