Summer is often spent relaxing with friends and unwinding from all the other stresses life can present.
However, if Northern BC residents don’t manage their money accordingly it can put them into debt.
A survey from Credit-Karma said half of Canadians between the ages of 18 to 38 have spent money they don’t have in order to be with their friends.
Leah Drewcock is a Licensed Insolvency Trustee with MNP in Prince George who tells Vista Radio saying no to certain events is often the best way to stay within your budget.
“A lot of people are worried that they’ll be judged or an assumption you haven’t managed your money well but you aren’t admitting to financial mismanagement in any way you are simply saying that it isn’t in your budget at this time, in fact, you are being fiscally responsible.”
She adds the two major keys are staying within your budget and planning how you pay.
“Not putting any expenses on your credit card that you cannot repay by the next bill due date is one and having emergency savings and savings for those priorities is also important. If we have a budget and a plan in place we are more accountable for that.”
An often misconception is that most young Canadians believe their friends make more money than they do but often times that isn’t the case.
“Our friends may also be in debt and feeling the same way opening up that conversation simply by saying I can’t afford it. You might find you will end up in a discussion with your friends or family where they are in the same boat.”
Drewcock suggests some free or low-cost alternatives like a hike in a park or house party instead of going out.
Much of the spending often comes from the possibility of missing out on major events and experiences or the fear of losing friends and being judged.
According to Drewcock, 20% of BC residents are unable to withstand a one percent increase in interest and 40% of Canadians feel they can’t even afford to cover their families expenses in the next 12 months without going into debt.