Unaffordable Holidays for brits
Direct Deposit where Cash-strapped Brits loosen the purse strings on holiday – and spend an extra £200 a week
Good news for those suffering from post-holiday blues: latest research from Halifax suggests that you should start planning your next summer holiday now.
According to the research, holidaymakers spend £200 more per week when they’re on holiday, compared to a normal week at home.
Brits who are already thinking about their next holiday should start planning as soon as they can – budgeting for the extra weekly expenditure, as well as travel and accommodation costs.
Respondents said they spent an average of £376.74 (excluding the cost of the holiday itself) every seven days they are away on holiday, compared to an average normal weekly expenditure of £167.18.
This is an increase of 125% – or in other words, people spend an extra £209.56 on holiday in addition to their normal weekly outgoings.
The research found that 77% of people splash more cash on eating at restaurants when on holiday and 68% spend more on leisure activities, compared to just 7% who say they spend more at home.
Around 58% said going to pubs, clubs and bars on holiday was more of a strain on their wallet than doing the same at home – although 11% said the opposite.
Holidaymakers do manage to make some savings, for example 43% of people say that childcare is cheaper on holiday than at home.
Richard Washington, Halifax Credit Cards said: "When budgeting for a holiday, it's really important to factor in the cost of some holiday 'spending money'.
“The holidaymakers we spoke to said that while they spend less on things like childcare and household bills while away, they see their expenditure spike on travel, leisure activities and going out.
“For a two week holiday, this is around £400 more than they'd normally spend at home, and they should take this into account when budgeting."
While Mr Washington confirmed it was particularly important for those jetting off abroad to focus on their finances, he also advised people to spend an equivalent amount of time managing their everyday finances whilst at home.
Budgeting before going on holiday is an excellent way to keep costs down, and a prepaid travel card can help you save even more. Money has to be loaded onto the card beforehand, which prevents overspending and keeps you on top of your own budget.
Tight Budgets make Dream Holidays Unaffordable
Over half of the population admit they have not been on what they view as their perfect holiday due to insufficient funds, a new study reveals.
The study by LV= shows many Brits are waiting for retirement to realise their dreams of going on the ‘perfect holiday’ and owning their ‘dream house’, due to the high cost of living currently making these dreams impossible.
A beach holiday is the most common ‘perfect holiday’ followed by a round the world trip and a cruise. With 55 percent admitting they have not been on this dream break, and 78 percent hoping to achieve this in retirement or later life.
“From a young age, we have aspirations for our future lives. Whether it’s a wonderful home in the country, sunning yourself on a beach or realising your childhood career aspirations,” commented Ray Chinn, LV= head of pensions.
“For most of us, it can take many years of hard work and a disciplined approach to saving to get anywhere near achieving these dreams.”
Only a third of today’s retirees however have fulfilled these travel dreams, and only 52 percent claim to have had their dream holiday, with 20 percent giving up hope of ever experiencing it.
A similar life view was found towards owning a dream home, as one in three currently have what they consider their ideal home, with 41 percent hoping to buy their perfect home in the future.
The main reason most people have not got their ideal home yet is affordability.
Budget with a Prepay travel Card
If you have not had your dream holiday yet, then take a look at your finances, work out how much you will need to save to afford it, and start budgeting.
A prepay travel card could help you stay within this budget, and prevent you from overspending into your holiday savings.