I don’t know about you, but the end of the summer is always a bit of a bittersweet moment for me. The (somewhat) sweet and lazy days of summer, peppered with kids’ chaos, traveling snafus and fridges emptying at the speed of the light, quickly give room to bitter and busier days, along with more intense work, business and school schedules. What it also spells for many, if not most working women and moms, is a serious financial wake-up call.
This Ipsos poll predicted that despite economic hardships, 2023 summer vacation’s spending was expected to increase up to 214.1 billion, or 10% higher than the previous year. In addition to summer spending, childcare costs and unavailability end up being a significant strain for working mothers. This is without mentioning the fact that many women’s employment suffers as they have to make trade-offs and compromises between work and childcare during the summer months. In their paper entitled “ The Summer Drop in Female Employment”, researchers and authors Melanie Wasserman and Brendan Price assert women’s earnings drop by 3.3 percent on a weekly basis during the summer, which represents about five times the drop experienced by their male counterparts.
As a result, most working women and moms find themselves running on empty at the end of the summer, needing to financially recover for the last three months of pay cuts, expensive vacations and outrageous childcare and camp options. Here are a few tips and strategies that may help in the process, and lay the foundation for future financial balance and success:
Pause to reflect and realign financially
- Reflect and Reevaluate Your Financial Goals
Before going into panic mode or jumping into financial recovery mode, pause and take some time for reflection and realignment around your summer spending and financial goals:
- What were the financial goals you set at the beginning of the year, if any?
- Did your summer spending get out of control during your vacation?
- Or did you manage to stick to your budget?
- What is your financial vision going forward?
Assessing your finances against your goals will not only help you understand where you are financially; it will also help you understand your spending habits and identify areas for improvement.
2.Realign Your Budget for Success
Now that you’ve reflected on your spending and your goals, it’s time to get into financial realignment mode:
- What discretionary expenses can be trimmed down?
- Can the reduced expenses be allocated towards your financial goals, to build an emergency fund, pay off debt, or investing?
Building a budget will help guide your recovery journey and realign yourself financially. Tools like Mint, YNAB (You Need A Budget), and PocketGuard empower you to track your expenses, set financial goals, and monitor your progress. These apps sync with your bank accounts, categorize your spending, and provide insights into areas where you can cut back. This approach allows you to regain control of your finances and allocate funds towards recovery.
3. Navigate Work-Life Integration during the back-to-school season
Effectively integrating your career and family life is crucial for both your family and personal well-being and your financial well-being. This is where the back-to-school season is a great opportunity to create a structured routine that allows you to manage your work commitments, be present with your family and reduce your expenses through better planning and time management.
Take financial action!
4. Strategically tackle your debt!
TransUnion’s 2023 Spring and Summer 2023 Travel Report shows 57% of survey respondents planned to use credit card debt to travel. If you’re among those who accumulated debt over the summer, it’s time to take action:
- Prioritize paying off high-interest debt to save money in the long run.
- Consider consolidating your debt!
- Negotiate with creditors to make your debt more manageable.
Freeing yourself from debt is one of the most important steps you can take towards thriving financially.
5. Explore New Income Streams!
It’s one thing to tackle your debt and cut expenses as part of realigning your budget. It’s also about increasing your income through diversifying your income streams. As a working woman and mom, tapping into your formal and informal skills is invaluable, from freelancing, consulting, or starting a side hustle.
6. Revamp Your Savings Strategy
As summer fades, it’s an ideal time to revisit your savings strategy:
- Have a clear purpose for your savings so you can motivate to continue setting money aside.
- Consider setting up automatic transfers to your savings accounts to make saving a habit.
- Create specific savings goals, whether it’s for a family vacation, education funds, or retirement.
Grow forward!
7. Invest in Your Financial Education
Financial education will not only allow you to get out of the summer financial pit you may be in. It will also help you empower yourself to grow your financial wealth:
- Take advantage of resources such as online courses, books, and workshops to enhance your financial literacy. Websites like Udemy, Coursera, and LinkedIn Learning provide a range of courses suitable for various skill levels. Equipping yourself with the knowledge and tools to make informed financial decisions is an integral part of post-summer financial recovery.
- Learn about investments, savings vehicles, and tax strategies will help you make informed decisions that align with your long-term goals.
8. Cultivate mindfulness and self-care.
Financial recovery can be a journey of ups and downs. Practicing mindfulness and self-care is essential to maintaining a positive mindset throughout the process. Engage in activities that bring you joy and reduce stress, whether it’s yoga, meditation, or spending quality time with loved ones.
9. Network and Support
Connect with other working women and moms who are also on the path to financial thriving. Join online communities, attend networking events, and share your experiences. The support and insights you gain from like-minded individuals can be invaluable in staying motivated and accountable.
All in all, transitioning from vacation vibes to financial thrive might seem intimidating and impossible to achieve. However, with the right strategies and mindset, you can make significant strides towards your financial goals. Remember, post-summer financial recovery is a journey, and each step you take brings you closer to a more secure and empowered future as a successful working woman and mom.
Now your turn, what strategies are you using to recover financially from the summer months?
The Corporate Sister.
