It now takes six months to save for a holiday
Almost half of people going away for a holiday this year say it has taken them six months to save up the cost, and three quarters have compromised to save cash – either staying in the UK or cutting their trip short. MoneySuperMarket’s latest Household Money Index found 64% will have more days out closer to home, while one in 10 are using rewards schemes and deals to lower the cost of their break.
Mum-of-two Kelly Miles, 33, who lives with partner Cameron, 32, in Portsmouth, with children Jensen, 11, and Lilah, nine, said she has managed to afford a week in Turkey, but is wondering how she is going to pay for activities to entertain her kids.
She said: “I think it’s often forgotten about how expensive summer is. I save all year round for our summer holiday, but I am guilty of putting saving for the rest of my summer on the back burner and then left wondering where I’m going to pull all this money from.”
Disposable income for a typical UK bill payer has fallen by £56.37 a month since April, leaving people with 7% less in their pockets after their bills are paid. 78% think grocery costs will rise, and around three in four 73% anticipate energy prices going up in the months ahead.
More than half are worried about petrol costs continuing to rise, while 39% are preparing for childcare and school costs to increase over the next 12 months. 17% now say getting to the end of the month without using their overdraft feels “unachievable.
Each quarter, MoneySuperMarket’s Household Money Index (HMI) tracks how much people spend across 31 everyday bills – from mortgages and utilities to subscriptions and groceries. This month’s report shows the average person now spends 66% of their income on 31 bills and outgoings – up from 65% in April, and they have £745.96 left at the end of each month.
Kara Gammell, Personal Finance Expert at MoneySuperMarket, said: “The latest MoneySuperMarket Household Money Index shows that, while households are making some savings, many have less money left after paying their bills than they did in the last quarter. With people expecting essential costs, such as groceries, energy and fuel, to keep rising this year, many are taking practical steps – from building up savings to reviewing their regular outgoings – to stay in control of their finances.
“While many households are focused on cutting costs now, some are thinking longer-term and exploring ways to build financial resilience through savings and investments when they’re able to.”
