Prioritize debt over discretionary spending
“I had to be really careful with money and it was the first time I had loans,” said the 28-year-old. “What I find challenging is that many of my friends my age are already established in their careers and therefore don’t have to live on a student budget,” Reid-Ginis said. “I find that I often have to explain or remind them what it’s like to live on so little money.”
Difficult decisions for college students in Canada – how do you speak about it while you haven’t got the cash?
As many Canadians proceed to face pressure on their budgets as a consequence of the high cost of living, they’re having to make difficult decisions about how they spend their money. This could include having to avoid going out with friends, which might result in tension between friends or lack of friendships.
“I feel like people still don’t talk about money,” said Jeri Bittorf, financial wellness coordinator at Resolve Counseling Services Canada. Bittorf said she often hears stories from customers who’re embarrassed that they cannot sustain with their friends’ expenses and outings. “Maybe you have a group of friends where you’re so used to going out to dinner together or… going to concerts together,” she said. “A lot of what you do has to do with money.”
Bittorf said people often feel afraid, ashamed or judged after they tell their friends they cannot afford to exit. “I guarantee you, if you are experiencing this, most likely some of your friends are experiencing this too,” she said. “It only takes that one person to start this conversation.”
Bittorf recalled her experiences along with her friends while planning a weekend trip. As a mother of three, Bittorf knew that upcoming expenses for her children needed to be factored into her budget. She gently introduced priorities and limits to the group, which ultimately led to a vacation that everybody could enjoy.
Sometimes, Bittorf said, it will depend on how the conversation with friends goes. “It’s really about being vulnerable and honest with the people closest to you,” Bittorf said.
She explained that it starts with stating facts that may strike you – “I noticed that we’re going out to eat a lot” or “We’re going to a lot of concerts right now.” Then Bittorf expressed how that makes you are feeling: ” I’m fearful that if I proceed like this, I’d find yourself going deeper into debt… because my financial situation is different than yours.”
Can you prioritize friendships and a budget? It will depend on
Find out how much you are willing to spend on going out with friends and allow them to know, she added. Bittorf said transparency about financial situations can open doors for brainstorming ideas for spending time together without all the time having to spend money. “If you keep saying, ‘No, I can’t afford that,’ the other person might think you don’t want to find another solution,” she said.
