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SUN'S OUT, FUNDS OUT: HOW TO RECOVER FROM A SUMMER FINANCIAL HANGOVER

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~ As the summer season comes to an end, many Americans are facing a harsh reality: the summer financial hangover. This predictable and costly pattern is something that Dr. Erika Rasure, Chief Financial Wellness Advisor at Beyond Finance, has seen time and time again. As the nation's largest debt consolidation company, Beyond Finance has seen a rise in clients seeking help with their lingering summer bills.

This year's hangover may be even more severe due to economic uncertainty, inflation, and a 17% increase in "buy now, pay later" purchases compared to last year. But why does this hangover hit so hard? Let's take a look at some of the common expenses that contribute to it.

Firstly, vacations and travel can be a major expense for families. In fact, the average cost of a family vacation in 2025 is projected to be $7,249 – a significant increase from just a few years ago. Even solo travelers or those traveling with friends can expect to spend nearly $3,861 per person on flights and hotels.

Special events such as weddings, reunions, and milestone celebrations also add up quickly with new clothes, travel costs, and gifts. Home improvement projects like landscaping or backyard upgrades can range from $1,249 to $6,280 – with professional landscaping averaging at $3,649. And let's not forget about entertainment splurges like theme park tickets or sporting events which can easily cost hundreds of dollars per person.

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Back-to-school shopping is another major expense for families during the summer months. On average, families spend $874.68 on clothing, shoes, electronics and supplies – not including an additional $141.62 per child for classroom basics alone.

But it's not just planned expenses that contribute to the summer financial hangover – spontaneous purchases also play a role. According to a MassMutual study, 52% of Americans overspend during the summer instead of sticking to a budget. And nearly 30% of travelers are willing to take on debt for their vacations. Despite this, 42% of consumers reported having smaller summer budgets this year, yet almost a third still ended up spending more than they planned.

The result? Come September, many Americans are not only unpacking their suitcases but also unpacking feelings of regret and financial stress.

Dr. Rasure explains that overspending during the summer isn't always about recklessness – it's often emotional. The mindset of celebration and escape that comes with the season can make it easier to justify purchases that don't fit within one's budget. However, the excitement and dopamine rush from these experiences quickly fades when the bills start rolling in.

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Social pressure also plays a role in overspending during the summer months. With friends posting vacation photos and event invites on social media, it's easy to fall into the trap of FOMO (fear of missing out) and make impulsive purchases that we later regret.

But there are ways to beat the summer financial hangover and prevent it from happening again next year. Dr. Rasure suggests taking inventory of all your summer-related expenses without judgment, rebalancing your budget immediately by prioritizing debt repayment, addressing any emotional triggers behind overspending, and planning for next summer by starting a "summer fund" now.

A financial hangover doesn't have to ruin your entire year – with awareness, planning, and addressing emotions behind spending habits, you can enjoy the season without experiencing a September shock. As Dr. Rasure says, "Summer memories are priceless but they shouldn't come at the cost of your financial peace of mind."
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