How are you paying for your holiday this year?
A recent survey of consumer spending habits*, carried out on behalf of the Financial Services Compensation Scheme (FSCS), has highlighted some interesting attitudes and behaviours of holidaymakers from the UK.
Saving up for a holiday
It turns out that we are a nation of savers after all, with 65% of those surveyed saying that they choose to save for their holiday. Over half (51%) save up in advance to cover the entire cost of the trip, while a further 14% will save some money but also pay at least part of the cost with loans or credit cards.
· In the 24-44 age group, the savings habit is greatest, with 75% saying that they put money aside in advance for their holidays.
· A lucky 22% of holidaymakers said they don’t need to save as they have enough money already to pay for their holiday.
· Only 5% of holidaymakers surveyed said they’d pay for the entire cost of their holiday on loans or credit cards.
PG tip: Saving into a holiday fund is much cheaper in the long run than putting a holiday on a credit card or taking out a loan – especially if you have no clear plan of how to pay off the debt.
PG tip: You can check that your holiday funds are protected by visiting fscs.org.uk.
Spending money on holiday
Research has found that a majority of Brits are brilliant at budgeting as two thirds (66%) of people surveyed have a budget set for holiday expenses. However, only a fifth (20%) actually stick to their budgets – showing that for some it’s easy to get carried away. Just under two fifths (37%) spent slightly or significantly more than planned.
PG tip: Many Brits are able to budget a little extra for holiday spending money because they cut back on hotel spending and search out the cheapest deals on flights.
Bringing money home post-holiday
On average, people have £70-worth of foreign currency stored at home for their next holiday, and 18% of those surveyed said they’d brought back over £100-worth. This
means that in total people have almost £2.85 billion in foreign currency stashed at home.
PG tip: if you’re not planning a trip abroad in the foreseeable future, shop around for the best deal to change leftover holiday cash back into Sterling.
Do you save up in advance for your holidays? Have you checked that any savings are safe in an FSCS protected bank, building society or credit union?
* From a survey of 2,065 UK adult holidaymakers aged 18+, conducted by Opinium Research during 26th to 29th November 2013.
