These questions become all the more pertinent when you apply them to multigenerational holidays – trips with two or more generations of adults.
New research has found that nearly a third of Brits have been on a multigenerational holiday in the past three years, with 60% claiming they’re the trips they look forward to the most.
And it’s a good job these getaways are so enjoyable, because they certainly don’t come cheap. Research commissioned by award-winning savings provider Kent Reliance shows that the average trip costs £3,233, with the average attendee expected to fork out between £1,597 and £2,475.
If those numbers don’t quite add up, it’s because when it comes to splitting the multigenerational holiday bill, the likelihood is that not everyone will pay their own share. And rather than being a point of contention, the opportunity to include and enable relatives who have less disposable income because of age or circumstance is widely welcomed.
After all, for 50% of holiday-goers, multigenerational getaways are a unique chance to make cherished memories – and who can put a price on that?
Pay your way
A recent survey, conducted by independent market research company Opinium, uncovered that 60% of those aged from 44 to 59 choose to pay for their adult children to join their vacations. And far from being a one-off gesture, 29% of parents plan to always cover their offspring’s multigenerational holiday expenses.
Similarly, a survey of Kent Reliance customers conducted in August highlighted that over 44% of respondents would happily pay for their children to tag along on trips.
Beyond travel and board, 85% of customers said they’d be happy to chip in for meals, activities and surplus spending.
So, it’s clear that the vast majority of multigenerational holidaymakers are willing to contribute beyond what’s absolutely necessary, especially if it means more opportunity to spend time and share experiences with those closest to them.
Saving for a sunny day
Given that the cost of multigenerational getaways is significant, you’d be forgiven for thinking attendees plan and prepare their holiday pot well in advance. But interestingly, 65% of customers stated they don’t save specifically for a holiday.
Instead, they simply draw on what’s available in their savings account, with 58% choosing to collect their funds in an easy-access saver.
Opinium’s research, conducted in May 2024, uncovered that 47% of respondents took multigenerational holidays on a regular basis. So it’s perhaps understandable that these frequent travellers would favour easy access to their money over long-term savings options such as bonds or individual savings accounts (ISAs).
However, nearly 28% of the Kent Reliance customers surveyed indicated that they pulled funds from their current accounts to finance their getaway. This could mean they’re missing out on earning substantially more monthly interest during the period between trips.
National Savings Week
Having worked in savings for well over a decade, I know all too well the importance Kent Reliance customers place on filling their holiday fund, whether to simply pay their own way or to treat their relatives too.
For more costly annual getaways, I would consider an easy-access ISA, which offers the benefit of a higher interest rate with the reassurance that the money is always available should you need it.
I’d also suggest setting up a regular monthly payment from your current account to a holiday savings account. By making sure the money comes out straight after payday, alongside your household bills, you’re less likely to notice it’s been moved.
A dedicated savings account also means you’re likely to think twice about withdrawing from your holiday pot for other purposes.
Louise Halliwell is group savings director of savings proposition at Kent Reliance
