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‘Tis the season of growling stomachs and endless boredom. With your kids in need of a fun excursion and parents needing a much deserved midyear break, the July school holidays can place added financial pressure on already tight budgets.
This can include purchasing winter clothing, managing higher electricity bills and keeping children entertained indoors. As part of National Savings Month, RCS finance executive Melissa Walters says the key is not to avoid spending altogether, but to approach it with a clear plan so that short-term needs don’t compromise longer-term financial stability.
“One of the most practical tools parents can use is the distinction between needs and wants,” she explains. “Helping children understand the difference lays the foundation for better decision-making, especially when money feels abstract or ‘invisible’ in a digital environment.”
This can be as simple as discussing everyday purchases and asking children to identify whether something is essential or if it is something that can wait.
Here are three tips to guide you through the season:
A FAMILY THAT BUDGETS TOGETHER, SAVES TOGETHER
Rather than managing holiday spending behind the scenes, Walters recommends involving children in simple budgeting conversations. A helpful approach is to set a clear holiday spending limit and track it together as a family. This could involve dividing the budget into expense categories and allowing children to see how each decision affects what’s left.
When children understand that spending in one area reduces what’s available elsewhere, it becomes easier to prioritise. At the same time, parents can look for alternatives that don’t rely on constant spending. The mall isn’t the only option for entertainment. Simple, low-cost activities at home can often be just as meaningful, without putting additional strain on the budget.
WHERE CREDIT FITS INTO A SAVINGS MINDSET
Credit, when managed well, can be a practical tool to help households manage the additional financial pressure that often comes with school holiday spending. For many households, spending patterns over the holidays do not always line up neatly with regular income cycles.
BUILDING HABITS THAT LAST BEYOND JULY
The way families approach money day-to-day has a lasting impact. When children see budgeting, planning and thoughtful spending in action, those behaviours can become part of how they understand and manage their own money in the future.
“At RCS, we believe that financial progress doesn’t come from one perfect month. It comes from consistent, informed decisions over time. July may be a challenging month, but it can also be an opportunity to build a stronger savings culture for you and your family,” says Walters.
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