Across Australia, parents are facing the school holidays against a backdrop of soaring prices and economic pessimism. The doom and gloom is not without reason. Recent data from the Australian Bureau of Statistics show prices for holiday-related expenses in particular – like transport, recreation, and hotels – are increasing across most of the country. Families are already under financial pressure dealing with the cost-of-living crisis, and this holiday period is just the latest item to hit the bottom line. But school’s out, and the kids are staying home. So what can families do to manage their holiday spending, while also spending quality time together?
The Status Quo: Balancing Discretionary and Non-Discretionary Spending
Managing the household budget often means trying to strike a delicate balance between discretionary and non-discretionary spending. Discretionary items are considered “optional”, and include things like recreation and holidays. Non-discretionary items are the “essentials”, such as housing and healthcare. When budgets tighten, households tend to prioritise the essentials. Discretionary items, like leisure and travel, are usually among the first to get trimmed. This might be easier to do if you are, for example, a retired couple. However, for families with school-aged children, school holidays put a renewed emphasis on recreation and leisure that’s harder to avoid. The costs other households can cut, like entertainment and recreation expenses, are exactly what the holidays demand most of young families.
Hidden Figures: The Real Cost of School Holidays
“Just keeping them occupied” expenses get much of the attention during school holidays, but they are only part of the story. For many families, household income also decreases. This owes to a structural mismatch: while school holidays account for 12 weeks of the year, most parents are only afforded 4 weeks of paid annual leave. The eight-week gap means parents often need to take unpaid leave or to reduce their work hours to care for children. Either that or they incur additional childcare expenses at record rates, further eating into their income. This is all a bit bleak, so let’s look to some positive and accessible options.
What Can You Do About This? Practical Tips for Families
Let’s set aside the obvious. Travel domestically instead of internationally. If need be, opt for a staycation or daycation. There is often a false choice between spending money you don’t have holidaying and the feeling that you’re short-changing the kids. This feeling can be overcome. Aside from self-control and household austerity, the other key principle which most often leads to positive outcomes is planning. Research shows planning a household budget can reduce your spending, even if you don’t stick to it strictly, helping you limit impulsive purchases. While unstructured long days over the break are often the home ground of impulsive expenses, planning for the school holidays aligns with planning your budget, allowing you to structure your spending in a manageable way.
Low-Cost Activities: Free and Affordable Fun
If you choose to stay put, there are plenty of free activities and low-cost travel options available too.
1. Libraries, Museums and Art Galleries
Libraries regularly offer activities for children and families for free, and often run additional programs during the school holidays that cater to many interests. Check out your local library’s website to see what’s on. While some museum exhibitions are priced, typically you’ll find gallery spaces that are free to the general public. Many galleries also host free school holidays activities.
2. Parks and the Outdoors
If you’re active, or the kids demand the outdoors, head out for some fresh air. Think about conservation and national parks and also green spaces in your local area. Research shows playing outdoors helps kids with both their physical and social development. When you’ve finally exhausted most options, don’t be afraid to stay at home. There are plenty of creative ideas for kids that don’t involve screen time, so long as you plan effectively. And for those who have to work – if you’re fortunate enough to have trusted family and friends – plan, coordinate, and share holiday childcare. It takes a village.
