Why Middle Class Can't Afford Disney

[crisi]

It's a for profit company....CMs like to get paid and put food on their table.

So do us stockholders. I make about half my income now through dividends (not much of it is Disney), and I'm not fond of subsidizing someone else's vacation. As an investor I expect that Disney will make an effort to maximize their profitability. And then I expect the profits from my investments.

I also own pharmaceuticals, and from an ethical standpoint, it would be really nice if I didn't make money hand over fist on those. I own them because I do, but I don't think those SHOULD be profit driven companies - and if the government passes decent legislation and I lose my shirt on those, I won't be too sad. I'll feel a little guilty getting my check for someone's really expensive chemo treatments, I don't feel even a flicker if I get my check off someone's vacation.

 

[tvguy]

So do us stockholders. I make about half my income now through dividends (not much of it is Disney), .

I can't complain. The 10 shares I bought 30 years ago are now 120 shares, and I just cashed a dividend check for nearly $100. Not bad for a $1,000 investment.

My wife had 1,000 shares in her IRA, not sure how many shares that is now.

 

[PollyannaMom]

One angle nobody has taken is what would you spend the week you are gone by staying home?

That's a good point to remember! I do the same thing with eating out. - Instead of looking at exactly what we spent, I look at the difference between what we spent to eat out and what I would have spent on cooking the same type of meal at home.

 

[DataMom268]

I think most middle class workers probably could afford a Disney Vacation they just don't prioritize it, and that's ok. A Disney vacation isn't necessary for a happy life.

If families could find a way to stick back $50-100/week, they could have enough for an annual trip. That might mean cheaper housing, shopping at Aldi and sav a lot, couponing, cheaper phone plans, no cable, fewer or cheaper clothes and shoes, less meals out, etc. For some that sacrifice might be worth it, others not so much.

I completely agree. Finding the money for a vacation is about prioritizing where to spend your money. If you want to travel to someplace like Disney on a fairly regular basis, families have to decide what they are willing to give up in their daily lives in order to have the money for that.

 

[DataMom268]

This is a big thing people forget. Even when my parents were growing up they didn't pay for a cell phone, wifi package, satellite tv, amazon prime, hulu, netflix, etc. I just did a budget check on myself and realized how much I spend in a day on things I do not have to spend that much on including my morning coffee/breakfast, lunch during the work week, snacks, etc. I know I'm not an anomaly of the average middle class worker because if I was it wouldn't take 15 minutes at 8:30 to get my breakfast and coffee at Starbucks. So a lot of people are spending 5 or more a day on coffee. I have to think in 1960 my grandfather would have scoffed at the idea of paying someone else to brew his coffee when he was capable of doing it himself before he got in his truck to go to work every morning.

I agree that budget planning plays a significant role in getting to Disney or any other vacation. We are a family of four and we actively track expenses in a budget spreadsheet. Each time expenses change I do a check like you mentioned. I find it helpful to re-visit my cell phone bill, cable bill, and even insurance deductibles periodically to see if I can find any money to be saved. It's also important to bring this budgeting mindset on vacation. We've had the experience at Disney World of paying for drinks and souvenirs on the fly then getting a not-so-magical credit card bill after getting home. During our 2016 Disney trip, we budgeted the extras using gift cards and came home 1) with items we wanted 2) aware of what we spent and 3) with money to spare and no looming credit card bill!

I am a mom of two and my daughter just turned four. I'm already trying to teach her that money is a limited resource. We have a membership to a nearby zoo and between the cost of gas to get there (it's an hour and a half away), tickets/membership, food, and extras like riding the carousel, it could easily be a $50 day trip. The last two times we went I explained that, if we used our money to ride the carousel, we were not visiting the gift shop.

We are saving for our next trip to Disney in 2018. Santa will be getting my daughter and infant son Disney gift cards at Christmas to help us budget for their souvenirs during the trip. We plan to involve our daughter, at a level she can understand, in our budget planning for the trip. This will include understanding that, once she spends the money on her gift cards, there isn't anymore.

 

[kydisneyfans]

We have a family member who thinks we're rich since we go yearly, and sometimes twice a year. They say they are completely broke all the time.

We had a family cookout last weekend. We provided meat and sides, we asked for help with beverages. If there wasn't $100 in alcohol brought in, I'd be shocked. Thought a budweiser truck had been hijacked. 11 of the 16 people either don't drink alcohol or were kids. Couldn't believe it. It took 3 trips to the car to bring in case after case of beer.

We then ate out Tuesday. 4 of us spent $42 including appetizers, 3-4 drank water. Her bill alone was $91 before tip, again most in expensive alcohol.

Now we know why she is broke all the time, and hopefully she knows how we can afford Disney since we spend our money differently.

It's all in priorities.

 

[Mackenzie Click-Mickelson]

We have a family member who thinks we're rich since we go yearly, and sometimes twice a year. They say they are completely broke all the time.

We had a family cookout last weekend. We provided meat and sides, we asked for help with beverages. If there wasn't $100 in alcohol brought in, I'd be shocked. Thought a budweiser truck had been hijacked. 11 of the 16 people either don't drink alcohol or were kids. Couldn't believe it. It took 3 trips to the car to bring in case after case of beer.

We then ate out Tuesday. 4 of us spent $42 including appetizers, 3-4 drank water. Her bill alone was $91 before tip, again most in expensive alcohol.

Now we know why she is broke all the time, and hopefully she knows how we can afford Disney since we spend our money differently.

It's all in priorities.

My best friend and her husband and myself and my husband were out to dinner a couple of weeks ago. We got to talking about stuff and they said they spent $3,700 in liquor store expenses alone in 2016! Not even counting any alcohol they get out when eating at restaurants.

I like a good beer believe me but oh heck no on spending that much money on just the liquor store...like not even in the same galaxy as how much they spend.

 

[firefly_ris]

My best friend and her husband and myself and my husband were out to dinner a couple of weeks ago. We got to talking about stuff and they said they spent $3,700 in liquor store expenses alone in 2016! Not even counting any alcohol they get out when eating at restaurants.

I just did a double-take reading that. Holy moses.

 

[Mackenzie Click-Mickelson]

I just did a double-take reading that. Holy moses.

Trust me I sorta did the same thing...only I was trying to be polite and not be like WTH!?

And the thing is it's not fancy liquor/beer at all it's just that they buy A LOT of it.

 

[MillauFr]

I just did a double-take reading that. Holy moses.

That is nothing. I spent $10k + on wine every year. We visit our daughter in college in Oregon several times a year and usually come back with 5 or 6 cases of Pinot Noir.

 

[Hikergirl]

My best friend and her husband and myself and my husband were out to dinner a couple of weeks ago. We got to talking about stuff and they said they spent $3,700 in liquor store expenses alone in 2016! Not even counting any alcohol they get out when eating at restaurants.

I like a good beer believe me but oh heck no on spending that much money on just the liquor store...like not even in the same galaxy as how much they spend.

I have relatives that spend that much a year too. They enjoy wine and cocktails and they entertain throughout the year. Its not really alot when broken down by week and they dont complain about not having any money so to each his own.

 

[kathy884]

I know the article is about the middle class, but I am seeing lots of people who in past generations would have been middle class (more high paying jobs back then for those without specialized skills/great educations) maybe classified as working class now (low wages and living pay check to pay check - high housing costs that really are higher than what would be comfortable for wages, leaving little for extras). With a pay check to pay check existence, a vacation splurge is a camping weekend or a mini driving trip to a nearby city. A trip to Disney/Orlando only happens if a wealthier relative is paying for them.

As for that high priced short Disney trip, I do see people of relatively modest means (middle class though -- better off than the group in the first paragraph and pretty good at budgeting being frugal) doing something like the trip the article described as a one time vacation spurge, after doing a lot of saving for that in advance. For that one time trip I see lots of onsite stays at moderate properties, etc. with four day park hopper tickets, etc. The Disney marketing has convinced them that this is the way to do it right, and as it will probably be their only trip down, they want to make the most of it.

In my circle, the people who do the more budget Disney trips are typically the ones who really love the place and tend to go annually or more. They also income wise are probably more upper middle class or actually based on wages and salary or net worth are above those posted middle class range amounts (not super rich, but someone who can fund a variety of savings goals and fund a reasonably generous vacation budget annually). They rent houses or condo from owners offsite, drive their motorhome to Fort Wilderness, own Disney Vacation Club, do split on / off stays, sometimes get annual passes, etc. lowering cost per trip, but at a high entry point. It's surprising actually how many Disney fanatics I know. Somehow we know who loves Disney and those are the people we talk to about Disney/Orlando trips. What they miss on this trip, they can do on the next. Face it, it's a lot easier to budget, take risks, try different things, when you have a bigger pot to start with.

I've heard discussions of people in this last group talking to people in the one time trip group about how to save on a Disney vacation. Often, though, there is a fear or reluctance from the one time splurge group that they might regret it if they don't stay onsite in the nicest property they can stay in without going too overboard, etc. as this will be the one and only trip.

 

[Mackenzie Click-Mickelson]

I have relatives that spend that much a year too. They enjoy wine and cocktails and they entertain throughout the year. Its not really alot when broken down by week and they dont complain about not having any money so to each his own.

Well wine and cocktails I would get as well as more expensive alcohol as it's easier to get up that high.

But spending that much on Coors lite and under $8 wine....yeah they get a lot of alcohol and admit that they spend too much money on that stuff when it could be used for basic household things...like safe stairs to get into their manufactured home and safer stairs to get into their basement or working vehicles that don't break down all the time, etc.

I should also mention...they live in the country the entertaining they do is bon fires where everyone brings their own poison so to speak so they are not out any $$ nor do they use their own alcoholic purchases for entertaining.

 

[crisi]

I have relatives that spend that much a year too. They enjoy wine and cocktails and they entertain throughout the year. Its not really alot when broken down by week and they dont complain about not having any money so to each his own.

We probably do. There are at least three $100+ bottles of bourbon in the house right now. There is a few thousand dollars invested in the wine rack. A few expensive scotches.

Its a good place to not spend money. But if you have money and enjoy alcohol, its also a good place to spend money. And if you are drinking in a responsible fashion. A 24 pack of Coors Light is about $20 here. $3700 would be 185 cases - or 4440 bottles of beer. If you have two drinkers in the house, and they both drink the same amount, that's 6 bottles a day - that isn't drinking responsibly. They could be buying beer for all their friends as well, but that is one hell of a party lifestyle.

 

[Hikergirl]

What people choose to spend their money on is none of my concern. Neither is how many cheap beers they are drinking a day.
I'm not the moral police.

 

[Mackenzie Click-Mickelson]

What people choose to spend their money on is none of my concern. Neither is how many cheap beers they are drinking a day.
I'm not the moral police.

I don't know why you're taking the comments in such a way

I don't believe I said I was judging them negatively, heck they were the ones to bring it up at dinner. I've also been friends with her for well over 20 years, we're way past talks of judging what we choose to do with our lives in regards to moral ways. We just simply talk honestly and when she tells me "we need safer stairs to get into the house instead of buying alcohol" I'm not there outwardly or inwardly saying "well duh". I just listen and converse right back.

 

[HarperLeigh]

I have relatives that spend that much a year too. They enjoy wine and cocktails and they entertain throughout the year. Its not really alot when broken down by week and they dont complain about not having any money so to each his own.

We easily spend that much in a year, probably more. Good bourbon, scotch and whiskey is expensive.

 

[crisi]

What people choose to spend their money on is none of my concern. Neither is how many cheap beers they are drinking a day.
I'm not the moral police.

It is my concern. Because if they are consuming six cheap beers a day, their chances of of liver damage and cancer go way up. And since insurance spreads costs across a pool, and I buy insurance, the fact that they treat their bodies like crap affects me - and you too.

 

[2disneyboys]

We are saving for our next trip to Disney in 2018. Santa will be getting my daughter and infant son Disney gift cards at Christmas to help us budget for their souvenirs during the trip. We plan to involve our daughter, at a level she can understand, in our budget planning for the trip. This will include understanding that, once she spends the money on her gift cards, there isn't anymore.

We do similar - this is somewhat off topic--
We typically go on some sort of vacation every year, but some of those trips are planned 2-3 years in advance - years ago, when we knew we were going to Disney anytime in the next year or so, we would tell grandparents, relatives etc to go to the local Disney Store and get "Disney Dollars" to give our boys instead of a gift card - the money itself was so cool looking AND it helped them understand budgeting their souvie money to handle "cash". We still have the local store, but they stopped selling (exchanging?) the Disney dollars years ago. I really miss those.

In 2005 we started planning a WDW trip for 2007 for DH & myself, our 2 boys (3 and 7 at the time) and my younger 1/2 brother (7) and 1/2 sister (8). We told EVERYONE in the family to give the kids a small gift and then $ for birthdays and Christmas (like a small action figure and $20 cash/ or Disney dollars) for 2 years - the way we told the kids we were going was we "made" a piggy bank - a large glass jar that we decorated with stickers and countdown tear off strips. They were all so excited to "save" their money, see it being revealed as we pulled off the tear off strips. (The 3 year old could care less, but the other kids thought it was cool.) They learned patience, saving and then on the trip itself, budgeting as we don't buy souvies in our trips - the kids have to use their own saved money. They can save the $ from gifts, and age appropriate "work" that may not be required of them, but is available to them.

 

[DataMom268]

They were all so excited to "save" their money, see it being revealed as we pulled off the tear off strips. (The 3 year old could care less, but the other kids thought it was cool.) They learned patience, saving and then on the trip itself, budgeting as we don't buy souvies in our trips - the kids have to use their own saved money. They can save the $ from gifts, and age appropriate "work" that may not be required of them, but is available to them.

I love your ideas! Definitely like the idea of a family bank and countdown-will be trying that! Our kiddos are totally capable of understanding that they need to choose how to spend their money to have some for souvenirs. Granted, younger kids still need Mom and Dad to set guidelines to help them manage money. My 4-year-old has two banks: one we save for vacation spending and one can be for other spending. Birthday money, Christmas money, and allowance all get split between the two. We also encourage relatives to give them money toward vacations to help us and them out-definitely agree with that idea!

What we are expecting of them as far as saving their own money and understanding that once it's gone, it's gone is, in my opinion, a good healthy lesson of the way life works!