Wintertime can take its toll on people. In many parts of the country, people leave for work when it is dark and come home when it is dark. Inclement weather prevents people from being outdoors, and they start to develop cabin fever. When springtime arrives, people want to get out and spread their wings. But this can lead to springtime overspending.
Why Do People Overspend on Spring Break?
Most people don’t overspend on transportation or lodging. They carefully research and find the cheapest flights and inexpensive hotels or hostels. Serious overspending happens once they make it to their destination. One drink or one meal out leads to another. It is easy to fall into the mentality of thinking that you don’t get to do this all of the time, so you might as well enjoy it. Even when people do a staycation, they make poor financial decisions and feel justified in making them.
The Dangers of Eating out During Spring Break
Humans overspend on special occasions. Part of that comes from not keeping track of how many “special occasions” a person has during the year. A family of four can easily spend $200 to $300 on food every single day while on vacation.
Many families do mental calculations. This is where, in their mind, they will divide the spring break vacation or staycation into categories. They will mentally set aside X amount of dollars for food, X amount of dollars for entertainment, and X amount of dollars for buying things. However, since they do not write things out, those mental lines get blurred. Before they know it, they have spent so much money that they return from vacation in debt.
Spring Break Shopping Sprees
When most people go on spring break, they have all of the clothing they will wear packed. When they arrive to their destination, though, they may feel like they have nothing to wear. They look at other people in fashionable and relaxed clothes and decide that it’s time for them to update their wardrobe, whether or not they have the money for it.
Many people experience present bias. This is where they put more weight on immediate rewards as opposed to those in the future. They disregard long-term interest and focus on immediate gratification. They go home with a suitcase full of clothing, trinkets, and other things they didn’t need and could ill afford.
The Danger of Borrowing Money for Spring Break Vacations
Most people don’t run to the bank and get a loan for their spring break vacation. But they borrow money in the sense that they put things on their credit card. Again, present bias explains why it’s easier for a person to spend money on a credit card instead of spending cash. When a person pays with cash, it hurts. When they pay with a credit card, they are able to separate the sting of borrowing money to pay for something with the pleasure of what they get back.
Create an Emergency Fund
Most people have heard of the importance of having an emergency fund. Still, they don’t do it, so they don’t have enough money to pay for unexpected expenses. Therefore, when they are on vacation for spring break and they get sick, they get injured, or something unexpected happens that requires money, they turn to credit cards.
Sometimes, an emergency fund or savings account can only cover part of an unexpected emergency occurrence. In that case, a person may want to look for short term funding alternatives, such as legitimate online installment loans. These loans might help cover the unexpected expenses during a financial pinch to help you get back on your feet. Even with these loans, a person should be diligent about paying the loans back as soon as possible.
Most people don’t run to the bank and get a loan for their spring break vacation. But they borrow money in the sense that they put things on their credit card. Again, present bias explains why it’s easier for a person to spend money on a credit card instead of spending cash. When a person pays with cash, it hurts. When they pay with a credit card, they are able to separate the sting of borrowing money to pay for something with the pleasure of what they get back. It may thus be necessary to get a credit card consolidation loan at some point.
Springtime is full of life, energy, and fun. It is understandable that people want to go on spring break vacation to break the monotony of winter. There’s nothing wrong with doing this, as long as a person plans, is responsible with their spending, and saves money to use on their vacation as opposed to relying on credit.
Article Written By Ellen hollington. She is a dedicated writer, and blogger