The Importance of Checking Emergency Funds and Education Costs Before the School Holidays

As the school holiday period begins, family recreation plans often take centre stage. However, before booking flight tickets or reserving hotels, there is a crucial aspect that must be considered: the family’s financial health. Financial planner and founder of DNA Finance Indonesia, Aliyah Natasya, stressed that a thorough evaluation of one’s financial condition is an absolute prerequisite before deciding to go on holiday. “Holidays are not a taboo subject in family financial planning. The problem is not the holiday itself, but the method,” said Aliyah. She advised families to examine several key indicators before arranging travel plans. One of the most critical is the availability of an emergency fund. According to her, the emergency fund must remain 100 percent intact and should not be used to finance recreational needs. Beyond emergency savings, fulfilling routine obligations such as children’s education costs must also be a priority. Aliyah emphasised that re-registration fees, uniforms, and books for the next semester must be fully paid, not just “nearly settled.” Aliyah issued a strong warning against using online loan services, paylater schemes, or credit cards that cannot be repaid within a single billing cycle to fund holidays. She referred to this phenomenon as “celebrated debt.” Furthermore, she explained that if total monthly debt instalments exceed one-third or 35 percent of income, the family’s financial room for manoeuvre is already extremely limited. Under these conditions, a major holiday should be placed on a waiting list rather than a plan. “If the source of holiday funds comes from online loans or credit cards that cannot be paid off immediately, it’s not a holiday. It’s celebrated debt,” she asserted. As a solution, financially healthy families should ideally have gradually set aside funds in a dedicated recreational account well in advance. With basic needs, educational expenses, and financial protection met, family recreation can be enjoyed without leaving a financial burden in the future.