How to budget for the summer break
Summer is upon us and parents are reportedly set to spend an average of £624 entertaining their children over the school holidays.
So how do you budget for all that time while your little darlings are off school?
Research by Post Office Money of more than 1,000 parents has found two out of three worry about covering the costs of summer, while 21% dip into their existing savings and 10% even take out a loan.
Parents are planning to get out and about to entertain their children this summer.
The research found parents are budgeting for entrance to attractions, such as theme parks, eating out and trips away.
In addition to these activities, parents will also be faced with childcare costs and treating children’s friends who they are looking after.
That is a lot to budget for.
More than half (55%) of parents putting money away think they have saved enough for the summer, having stashed a summer pot of £251. However, to cover the full costs associated with the summer holidays, parents should expect to spend a further £373, the research found.
Post Office Money claims half of parents are saving for more than one month, and one in eight have put money away over the past six months.
Other parents expect to cover these costs by dipping into savings (21%), using a credit card (17%) and working overtime (16%). One in 10 (10%) will rely on a loan from family, friends or the bank.
Setting a budget can help keep summer expenditure manageable, however a third of parents (37%) admitted to spending more than they expected in 2018. As a result, one in five (22%) have saved more for the holidays this year than last year.
Don’t let one summer spoil your long term investing goals.
Speak to your financial adviser if you feel you are losing track of your financial plans. We can’t advise on the best summer activity, but our main recommendation would be to wear sun cream.
- The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested.
- Past performance is not a reliable indicator of future performance and should not be relied upon.
