Holidays: How are you paying for yours 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.

Personal finance writer, Penny Golightly shares her top tips for saving for holiday:

Tip 1: 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.

Tip 2: You can check that your holiday funds are protected  by visiting: http://www.fscs.org.uk/protected/

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. 

 

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Jargon Buster

  • Credit union

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