Taking Control of Your Finances This #BratSummer

Written and researched by: Aya Kinsey

If you’ve been on social media lately, you’ve probably noticed the Brat trend, which stems from pop singer Charli XCX’s hit new album titled “Brat”. This aesthetic is all about embracing our unapologetic selves, celeBRATing the imperfections like smudged eyeliner and wearing sunglasses indoors. A Brat may not have their finances in check, but confidently embraces their flaws and lack of financial knowledge. When it comes to the Brat trend, we’re all in.

The first step of taking control of your finances begins with understanding your spending habits. Regularly reviewing your expenses is crucial, especially if you tend to spend more than you can afford. Dedicating some time every month is a great financial habit.

Keep an eye on your credit card statements and online banking balances to catch any unfamiliar charges. If something doesn’t look right, contact your bank immediately. In the case you are a victim of credit card fraud, call your card issuer, write down who you spoke with, and notify Equifax and TransUnion to add a fraud alert to your file.

Having a financial plan shouldn’t add to your stress. Instead of seeing it as another mental checklist, break down your plan into manageable steps. Start by outlining your financial goals and prioritize them. This might include paying off credit card debt, creating an emergency fund, or saving for your next trip. By understanding your income and necessary living costs, you can budget effectively and save money without sacrificing enjoyment. Budgeting is about making smart choices that allow you to enjoy life while staying financially secure.

Before making your next purchase, try following the 48-hour rule. This means waiting 48 hours before buying something to see if it’s a need or just a want. This helps avoid impulsive spending, so you can save money or use it to pay down debt instead.  Before buying, ask yourself, “Do I really need this?”.

Another great skill is to practice loud budgeting, which emphasizes cutting back unnecessary expenses and sticking to your money goals without sacrificing your pleasures. Remember, small purchases can add up over time to become significant financial burdens. You don’t have to say yes to every social event or give in to the latest trends, especially if they don’t fit your budget or personal style. The act of loud budgeting involves saying your financial decisions and goals out loud, reinforcing your commitment and helping you stay accountable.

While it’s easy to be persuaded into buying the newest Owala water bottle or Adidas Sambas, these microtrends may be the cause of your debt. Statistics Canada shared that total household debt reached nearly $2.1 trillion in the second quarter. The easiest way to avoid going into debt is to spend less than you make. And while we all enjoy walking around in style, don’t try and “girl math” your way out of every impulse buy. Overconsumption is real—stay stylish and trendy, but prioritize financial responsibility by setting a budget, making mindful purchases, and avoiding unnecessary splurges.

For your everyday spending, consider using a rewards or cashback credit card. If you’re a frequent traveler, the Scotiabank Passport® Visa Infinite* Card is a great choice with no foreign transaction fees, comprehensive travel insurance, and airport lounge access. For nights out with friends, the American Express Cobalt Card offers 5x points on eligible dining and food delivery expenses. By researching credit card rewards that match your lifestyle, staying on top of your credit card bills, and making strategic choices, you can unlock the full potential of your spending while managing your finances responsibly.

Being a Brat is all about balance. You can save for your next big trip and still pay off student loans. You can be saving towards your emergency fund and still enjoy a night out. Becoming financially responsible is all about making small efforts to take control and work towards your financial goals. Remember, Brats can be both - unapologetically themselves and embrace their messes, while being financially in check.

Also read:

• Unlocking credit card rewards
• Girl Math 101
• Loud Budgeting
• Buy now pay later