A study by the bank found that more than two-thirds (70%) of Brits save in advance for summer spending, with just over a fifth (21%) putting money aside for summer holidays every month.
The research found that a fifth of Brits (20%) start saving for summer 3-4 months in advance, with only 1% saving more than six months in advance.
In terms of generational comparisons, the research found that almost half (47%) of millennials have been actively saving and planning ahead for summer – but all other generations are more likely to enjoy summer without thinking about money.
Gen Z and millennials also dedicate the highest portion of their income to summer spending – almost two-thirds (63%) of millennials and more than half (57%) of Gen Z allocate 10-20% of their monthly salary towards summer holidays and experiences, compared with around two in five (43%) of Gen X and a third (33%) of baby boomers.
Summer budgets
A third (33%) of Brits said they started spending their summer budget earlier than usual due to the warm spring weather.
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Gen Z are most likely to have splashed out early, as more than half (55%) said they dipped into their summer budget early and 16% admitted to spending significantly earlier than usual due to the spring sun.
Millennials came second, with 52% spending their summer budget earlier than usual, while only 21% of Gen X and 9% of baby boomers have done so.
Millennials are expected to be the biggest spenders this summer, as 28% expect to spend between £1,000 and £2,000 compared with just 15% of Gen Z, 14% of Gen X and 13% of baby boomers.
Surina Somal, everyday banking director at TSB, said: “With the UK summer off to a scorching start earlier than usual this year, consumer spending has been heating up too – with some generations more prepared than others.
“Our latest TSB data shows that while millennials are most likely to have been actively saving for summer, they are also the biggest spenders as they tend to have other dependants to consider, with their biggest expenses being holidays and kids activities, summer camps and childcare.
“Meanwhile, younger generations, who tend to have less disposable income, are more likely to rely on credit over the summer, even after actively saving in advance.”
How to manage your summer budget
- Set a seasonal budget and stick to it
Create a separate ‘summer fund’ within your normal budget and account for holidays, weekend trips, events and any planned summer treats.
- Beware of holiday scams
It’s important to stick to official and trusted holiday booking sites – and be wary of offers on social media sites. It’s usually more secure to pay by card, not by bank transfer.
- Review your memberships and subscriptions
Your normal routine can often change over the summer period and it may mean that you are not using your memberships or subscriptions as much as normal – so pause or cancel any you are not using.
- Look for interest-free credit
If you need to borrow money, consider whether options with longer interest-free periods might be right for you, but make a plan to pay down the balance before the introductory period ends.
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