Holidays: Are people blowing their budget for the holiday of a lifetime?

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.

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 is easy  to get carried away. Just under two fifths (37%) spent slightly or significantly more than planned.

Personal finance writer, Penny Golightly's top tips for saving:

Tip 1: 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. 

Tip 2: 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? You can do so by visiting http://www.fscs.org.uk/protected/ 

* From a survey of 2,065 UK adult holidaymakers aged 18+, conducted by Opinium Research during 26th to 29th November 2013. 

 

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Jargon Buster

Credit union

a financial co-operative which is owned and controlled by its members.