You are here: Home - Household Bills - News -

Brits spend a quarter of disposable income on holidays

0
Written by: Paloma Kubiak
31/05/2018
The average British family holidays twice a year, spending more than £6,000, which represents a quarter of the household disposable income.

Holidays typically cost £855 per person each time though a quarter of holidaymakers splash out £1,000 or more.

Based on this amount, a family of four could be paying out £3,420 each time they go away so two breaks a year can cost up to £6,840.

According to the Nationwide’s spending report which analysed 500 million digital transactions made by its members in the first three months of 2018, this equates to a quarter of a family’s budget. Or it represents three months’ disposable income, based on the average wage of £27,300 (£2,275 per month).

The building society report also revealed that half of Brits (of 2,000 surveyed) aren’t willing to forgo anything in order to go on holiday. Four in 10 paid for their last holiday using savings while a third used their current account.

A quarter said they had to borrow money to go on holiday, including credit card (15%), personal loan (4%), while 3% said they borrowed money from family and friends.

Of those who borrowed money for their holiday, 88% said this was the only way they could afford to go away.

For others, sticking to a budget while away can be a problem as six in 10 Brits overspend, with more women (68%) than men (55%) admitting to going over budget. Typically, this adds £250 to the holiday cost.

As such, the average Brit takes three months to pay off a holiday, while 11% said it took more than six months. Those aged 55 and over said it only took them two months on average to pay it off, compared to the three months it takes those aged 25 to 34 and 35 to 44.

When asked about holiday regrets, a quarter said they spent too much money while 21% said they didn’t have enough money to enjoy themselves. A further fifth regretted spending so much on their holiday.

Scott Manson, Nationwide’s head of banking and payment strategy, said: “Holidays are about enjoying ourselves and spending quality time with loved ones. We all want to ensure we have a good time, which means it’s very easy to ditch the budget in favour of relaxing and having fun.

“But with many people saying they have to borrow money to be able to go away, it’s important that full costs are considered when setting a holiday budget, including the extras, such as excursions and the items you need to buy before you go.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
It’s time to switch your energy: you could be overpaying by £400 a year

Millions of customers of the biggest energy suppliers will see bills rise as ‘price hike fortnight’ takes hold.

Close