Holiday Fun Leading to Financial Meltdown
Writes Dan Drage dan.drage@consumerchoices.co.uk
A significant number of Brits have confessed to overspending while on holiday.
British holiday makers have lost control of their holiday expenditure, according to the latest NS&I Quarterly Savings Survey.
61% of British holiday makers admitted to overspending while they are away on holiday, while a further 34% fail to set themselves a budget before they head off for their two weeks in the sun.
The means by which the holiday maker exchanges their pounds into the destination currency can determine whether they receive a favorable deal or not, but 40% of British holidaymakers are not always aware of the exchange rate when abroad.
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"More of us need to set money aside specifically for holidays or the holiday spirit will come back to earth with a bump on the return home"
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A quarter of those surveyed said they received a nasty shock on returning from their jaunt and checking their bank balance. The average amount overspent by the British holidaymaker abroad is £133.
The reasons for overspending were given as follows:
- Because I’m worth it: 49%
- I get over-excited: 30%
- I don’t understand exchange rates: 8%
- I can’t budget: 6%
- Other: 7%
Dax Harkins, senior savings strategist at NS&I, had the following to say:
“There is no doubt holidays and spending while abroad are costing Brits a lot more than many bargain for, but people need to think past simply enjoying themselves and to plan their finances so there are no nasty shocks when they get home and face the bills”
He continues:
“Given the expense, it is great to see that a quarter of people do save in advance, but it is clear that more of us need to set money aside specifically for holidays or the holiday spirit will come back to earth with a bump on the return home.”
Chris Eagle, Commercial Manager at Credit Choices, has the inside track on the most economical ways to spend overseas:
“You need to check the Credit Choices guide to taking advantage of generous exchange rates, to make your holiday money stretch further and avoid nasty shocks on your return.”
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