Family Finances: Should You Invest in a Big Home or Big Experiences?
- Mark Garro
- Feb 19
- 5 min read
When it comes to family finances, one of the biggest decisions many face is whether to invest in a larger home or spend money on enriching family experiences. Both options can significantly impact quality of life, but they represent different kinds of value—one that is tangible and long-lasting, and another that is deeply emotional and transformative. So, how do you choose between investing in a big home or spending on big experiences? Let’s explore the benefits and considerations of each.
The Appeal of Investing in a Big Home
For many families, buying a bigger home represents comfort, stability, and success. A spacious house provides more room for everyone, giving family members their own space, creating an environment for entertaining, and making day-to-day life more comfortable. A larger home can also be a long-term financial investment, potentially increasing in value over time, which can contribute to the family’s wealth.
A big home comes with practical advantages—extra bedrooms, a larger kitchen, more space for hobbies, and the ability to host guests comfortably. For families with children, it can mean enough room for everyone to have their own private space, which can help reduce stress and make life easier. Additionally, a bigger home in the right neighborhood may come with benefits like better schools, more amenities, and a stronger community network.
Financially, real estate can be a strong asset that appreciates over time. A big home, when purchased wisely, can contribute to long-term financial stability. Home equity can be an important part of a family’s financial plan, providing security and even opportunities for future borrowing if needed.
The Power of Big Experiences
On the other side of the coin, investing in big family experiences has its own unique value. Experiences create memories that last a lifetime, foster deeper relationships, and shape who we are as people. Whether it’s a family vacation, an educational trip, or a once-in-a-lifetime adventure, these experiences often bring families closer together in a way that material possessions simply can’t.
Studies show that people derive more happiness from experiences than from material goods. The excitement of planning a trip, the joy of spending quality time together, and the stories that come out of these experiences can have a lasting impact. Family experiences can also teach valuable lessons—exposing children to new cultures, ideas, and ways of life. Traveling together, trying new activities, or exploring new places can help children grow up with a broader perspective of the world.
Experiences also have a way of enriching daily life. Unlike a big home that may become a background fixture over time, the memories created from experiences stay vivid. They bring joy during the planning, excitement while living them, and nostalgia long after. They also have a cumulative effect—each experience adds to the family’s story and helps define who you are together.
Weighing the Costs and Benefits
Choosing between a big home and big experiences doesn’t have to be all or nothing, but it does require thoughtful consideration of your family’s values, needs, and financial situation.
Financial Commitment: A larger home often requires a significant financial commitment. This includes not just the mortgage but also maintenance, property taxes, and utilities, which can all be more costly for a bigger property. On the other hand, experiences, while potentially expensive, are usually one-time costs. The financial strain of a larger home is ongoing, whereas spending on experiences may be easier to manage incrementally.
What Brings Long-Term Value: Ask yourself what your family values more—tangible assets or shared memories. A bigger home may bring comfort, stability, and potential financial gain, but experiences bring growth, joy, and emotional fulfillment. Think about which will matter more to you in the long term: a bigger living room or the stories you share from that family vacation.
Impact on Relationships: A larger home can create comfort but may also lead to physical distance among family members if everyone has their own separate space. Investing in experiences brings family members together, creating shared moments and helping to forge stronger relationships. If quality time is what you’re after, experiences may be the better investment.
Balancing Both: Finding a Middle Ground
For many families, the ideal scenario is finding a balance between investing in a comfortable home and spending on meaningful experiences. It’s important to evaluate your budget and determine how to achieve a lifestyle that allows for both, without overextending financially.
Here are some practical strategies to strike a balance:
Set Priorities as a Family: Have an open conversation with your family about what’s most important to everyone. Are private rooms and a large yard priorities for your children? Or would they rather travel more often? Understanding everyone’s desires can help guide the decision.
Establish a “Lifestyle Fund”: If both a bigger home and big experiences are important, set up a fund specifically for lifestyle improvements. This could include saving for home renovations that improve comfort, while also setting aside money for family vacations or other experiences.
Choose a Modest Home in a Great Location: Instead of going all-in on the biggest home you can afford, consider choosing a more modest home in a location that offers plenty of opportunities for experiences—such as near parks, cultural sites, or community events. This way, you can still enjoy experiences without always needing to travel far or spend extra money.
Make Use of Your Home for Experiences: Turn your home into a hub for experiences. Instead of buying a home just for its size, invest in features that enhance family time—such as a garden for outdoor activities, a cozy living area for movie nights, or a space dedicated to family hobbies. This way, your home becomes a venue for creating shared memories.
Plan Experiences That Don’t Break the Bank: Investing in experiences doesn’t always mean spending lavishly. Plan local adventures, family camping trips, or even simple day trips that can still offer a wealth of joy and connection. The value of experiences often comes from the quality of time spent together, not necessarily the money spent.
No One-size-fits-all Answer
There is no one-size-fits-all answer to whether you should invest in a big home or in big experiences for your family. It all comes down to what aligns best with your family’s values and what will bring the most fulfillment. For some, the comfort, stability, and financial potential of a larger home are most important. For others, the memories created through shared experiences are what make life meaningful.
The best choice may often be a balance of both—ensuring that your family has a comfortable place to call home while also making space for experiences that enrich your lives. Ultimately, investing in what makes your family happiest, whether it’s a big backyard or an unforgettable adventure, is what will pay off in the long run. Choose what will help you create the life you want together, and remember that it’s the moments you share, not just the things you own, that define the richness of family life.
Featured Image Credit: Unsplash / Breno Assis.
Comments