The Rachel Cruze Show - 45% of Americans Are Taking On Debt for THIS?

Starting point is 00:00:01 Well, hey, you guys. So if you know me, you know that I have a pretty hard line around debt. And I think a lot of people understand and they see why. But one of the most common arguments that I hear is that the experiences are worth taking out debt. So the idea of vacation or great meals, whatever it is, it's like, yeah, but it's this experience and these memories and it's worth it. So keep watching to hear what I think about this. And be sure to subscribe and share with a friend. before we get started. So I saw a recent stat that 45% of parents who go to Disney with kids under 18 take on debt for their vacation. And the average amount of debt that these parents take on was close to $2,000, $1,983 to be exact. So going to Disney, specifically Disney, right? It's an expensive place. I mean, it is. You think about prices of tickets and everything, and there's a

Starting point is 00:01:03 spectrum of like, you know, if you stay on property or not. I mean, like, there's ways around to cut costs, but just even getting into the park, if you have a family of three, four, five, six, it's very expensive. And listen, we all have choices to make, okay? And if this has ever been you, it's a choice that's probably coming from a good place if you're thinking, do I want to go to Disney or not? Do we have the money or not? But it's also a choice that will have consequences if you choose to go into debt. And in my opinion, I think that there is a better way to do this. So I'll share more about that in just a few. But first, I want to debunk four common myths around the debt is worth it for the experience arguments. Okay. Because, again, I think a lot of people justify this. And it's like,

Starting point is 00:01:52 well, you know, we need to go into debt because we won't have the money to do something big like Disney. And so, again, the justifications really begin. And the first thing that I hear all the time is that Disney parents are the best parents, right? It's this idea of wanting your kids to have a memorable, joyful experience, and that's a really great thing. But just because a parent takes their kid to Disney does not mean that they are a better parent than someone that doesn't. Okay, I think we can all say that out loud, right?

Starting point is 00:02:24 And when I say it out loud, you're probably thinking, well, of course, Rachel, we know that. But in the heat of the moment, when you are that parent and that guilt starts, you think, well yeah yeah yeah but man we got we got to like we got to do this like this is a part of childhood right and so this idea this lie that suddenly you are a better parent because you're giving your child this experience versus not versus maybe saying we don't have the money so we're not going to do that again it's a lie it's a lie to believe that you're a better parent because of it number two your kids will always be happy at the happiest place on earth raise your hand if your child has ever been in a full-blown meltdown and you're like, oh, wait one second, child,

Starting point is 00:03:06 let me go get my phone so I can like video you doing this and then post it so we can be really relevant, like all the things. No, no, people don't do that. We don't feel meltdowns, not because you're always embarrassed by them sometimes you are, but also because, like, you, your anxiety's high, you're trying to figure out what your kid needs. You're not thinking about going and filming it. So the same is true with the Disney parent. And I'm going to believe that. I'm going to take the positive approach to this, that people aren't posting their meltdowns because nobody has time to whip out their phone and record the meltdown, right? So the idea that every picture you see, most pictures you see, it looks like a glorious time, you know,

Starting point is 00:03:45 and I bet some of the trip is. We have been to Disney as a family, so I will fully admit, like, yeah, there are times that it is so fun and enjoyable. And then every trip, always, no matter where you are in life, right? even out to a restaurant, the meltdown happens or the, you know, the disrespect or the talking about whatever it is, it always happens. And it always happens at Disney, too. But you may never see it. Number three, my kid is going to remember every single detail of every day. They won't always remember like, gosh, that specific thing on that specific day and that specific ride and that specific time. What they remember is the overall emotion of the trip. They remember the funny moment.

Starting point is 00:04:26 as a family. They remember the time that they were scared and they were brave and did the thing. I mean, the idea that they're going to remember every single detail is just not true. It's not. I mean, even as parents, we don't. And so the idea of sharing moments with your family that are memorable in Disney or not is really crucial because that is what your kids remember. They really do. They remember how they felt in a moment versus the actual thing. All right. The fourth myth is that Disney is the only place where joy exists. Yeah, let's just all take a moment and say, that is not true. And I think we all know that, but sometimes we have to say these things out loud. Because listen, your kids can have the same level of fun on a staycation. And you may be thinking, that's not true, Rachel.

Starting point is 00:05:12 So much of our attitude as parents and the environment in which we live our lives and handle our kids in situations matter so much more than where we are. Because you can create an incredible staycation and they are going to have the best time. Because listen, if you don't have cash for Disney, maybe book a room with a local holiday inn with a groupon and let the kids go crazy with the vending machines and the indoor pole. And trust me, they are going to have a great time. Or think of other experiences that can spark joy from home. You know, think about having board game night. Think about having movie nights. Think about going out and like doing a scavenger hunt. Like doing things with your kids will bring so much joy.

Starting point is 00:05:53 We recently had a litter of puppies. We have six puppies at our house currently who are six weeks old. And can I tell you, it has been like our kids, they would pick this over anything else. Now, it has been a lot of work. It's a lot. But the amount of joy that comes from that, from having puppies for eight, nine, ten weeks at our house has been like the best thing ever. So again, you may not be able to have litter of puppies at your house. I get that.

Starting point is 00:06:18 but think of creative ways to create memories with your family and have joy and excitement in your life or it doesn't have to be spending tens of thousands of dollars at Disney World. Now, one thing that can steal your joy on a daily basis is debts. And this is true if you are paying it off months and months after a Disney vacation. Because think about it, you are still paying for these experiences after you've already lived them, plus with interest, so you're paying even more. So creating fun and enjoyable experiences for your kids, regardless of where you are, is so important. But if you do want to go and have fun with your kids on a great trip, which again, we are all about.

Starting point is 00:06:58 I want you to do that. I'm not mad at Disney. I think it's great. But I want you to do it a smart way. So my number one tip for traveling of any kind, including Disney World, is to save up and pay for it. So this may mean that you're going to be at a slower pace when it comes to saving up and paying for something. it may mean that your trip will look different if you choose to pay with all cash versus going into debt where you could spend more than what you have. You're going to have more, you know,

Starting point is 00:07:25 boundaries and limitations. But all of this is to set yourself up well because one of the worst things that can happen is going deeply in debt for something and then coming home and having to pay for it month after month plus interest on top of it. And again, I feel like in our world today, I talk to so many people where it's like this, this, you know, paycheck to paycheck cycle. And sometimes it is so easy to give into our emotions. It's like, it would just be so nice to have a trip and to get away. And our kids really want to go. Let's just go.

Starting point is 00:07:55 Let's just go. You kind of just like throw everything out the window and you do it. Because in the moment, it just feels like, you know, we should because we want to be a great parent or whatever the thing is that's causing you to do that kind of vacation. And realizing that when you get back, though, that stressful cycle that maybe you were already in, gets even worse. And I think part of being a grown-up and part of being mature when it comes to our money is we have to say no. We have to say no to ourselves. We have to say no to our kids sometimes. So if it is not in the budget, if you don't have the cash for it, that doesn't mean you can never do it. Just be patient. So do not go into debt for a vacation. Okay, I promise the vacations that

Starting point is 00:08:32 follow you home and payments are not worth it. Now, when you are looking to save up for a vacation, doing a little bit per month is the way to do it. And that's called a Sinking Fund. And if you download the Every Dollar app, this is going to help you with your monthly budget and in it includes sinking funds. Because listen, I am all about experiences. I am all about fun.

Starting point is 00:08:53 And I want you to enjoy your life and have fun. I just want you to do it the right way where the fun can continue even when you come home. So make sure to download the Every Dollar app, put a Sinking Fund line item in there and save up for these trips because there are great experiences to have out in the world. and it's wonderful, but when you go into debt for them again,

Starting point is 00:09:12 it sucks the life out of you. Now, if you want to make progress with your budget really fast, make sure to check out my episode on the right way to do a monthly budget. That is next. And for podcast listeners, make sure to click the link below to get that episode. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - 45% of Americans Are Taking On Debt for THIS?

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