There are nine spending habits you should avoid
A finance expert has urged people to suggest cheap days out to friends after research found three quarters can’t afford summer plans they agree to. Research by loans agency QuidMarket found many are prepared to stretch their finances during the warmer months at the expense of financial stability.
But only 26% can comfortably afford summer plans they say yes to and 61% would prioritise summer fun over essential bills. Clare Marsh, who founded accountancy firm Her Business Counts, has revealed four tips for keeping summer spending under control.
She’s urged Brits to be the pal that suggests cheap days out to ‘set the tone’ with friends and avoid both you and them from overspending. Her other tips include checking your bank account more often, saving money ahead of summer and paying your bills early.
More than two thirds of people who do have summer spending rules have admitted to breaking them and 72% say they would consider borrowing money for holidays or days out.
THE TOP ‘INVISIBLE’ SUMMER SPENDING HABITS DRAINING WALLETS
- Eating out and takeaways – 41%
- Ice creams, drinks and snacks while out – 32%
- Petrol or travel costs for days out – 30%
- Parking, tolls or public transport fares – 19%
- Holiday add-ons (food, excursions, souvenirs) – 17%
- Last minute plans or spontaneous social events – 15%
- Summer entertainment for children (clubs, activities, childcare) – 14%
- Festival tickets, gigs or events – 13%
- Extra food shopping with children at home – 13%
Shraddha Bansal, head of data and analysis at QuidMarket, said: “There is a gap between intention and behaviour, with most setting spending rules but a large proportion breaking these. This combined with the growing tendency to prioritise summer spending over essentials shows how easy it can be for finances to slip during busier, more social periods of the year.
“It is apparent just how quickly ‘little and often’ spending can build up over the summer months, especially around social plans such as eating out, day trips and last-minute plans. While the findings highlight a clear trend in spending habits, it’s important to recognise that summer is naturally a time when people want to relax, socialise and make the most of longer days and better weather.
“From holidays and day trips to spontaneous plans with friends and family, these seasonal moments are a valued part of everyday life. Rather than pointing to poor financial behaviour, the data reflects the reality that summer presents more opportunities to spend, often in small, incremental ways, making it easier for budgets to stretch without people immediately realising.”
CLARE’S TOP TIPS FOR CONTROLLING SUMMER SPENDING
1. Treat summer like a major financial event and plan early
Clare said “If you’re reading this in June, July or later, remember that the best time to plan was January, but the second-best time is right now. Even a few weeks of putting something aside before the summer months hit is better than nothing. And make a note for yourself: next year, start in January.
“Remember that some of the best things about summer cost nothing at all. Sunshine, fresh air, the park, the beach, longer evenings outside.”
2. Try a payday hack with the 50/30/20 rule
Clare said: “On payday, the 50/30/20 rule is a useful framework to follow. Spend roughly half your income on needs, thirty percent on wants and twenty percent on savings or debt.
“It won’t fit everyone perfectly, and for anyone in real financial difficulty it may feel completely out of reach right now – if that’s you, the priority isn’t a budgeting method, it’s getting the right support.”
3. Check your bank account regularly
Clare said: “If looking at your bank account feels like it might ruin your mood, not looking feels like self-preservation. The problem with that is that the number doesn’t change just because you’re not looking at it – it just gets more surprising when you eventually do.
“A quick, regular check-in makes the numbers feel normal rather than terrifying and essentially, you can’t manage what you won’t look at. If what you find when you do look is genuinely worrying, that’s the signal to reach out to Citizens Advice, StepChange, MoneyHelper as they’re all free, all non-judgmental and all there specifically for this.”
4. Opt for lower-cost alternatives to expensive plans
Clare said: “Opt for lower-cost alternatives and set the tone with friends. Enormously, pre-social media we were comparing ourselves to the Jones next door, now we’ve been encouraged to compare ourselves to the whole world.
“There’s a particular summer version of keeping up, where the highlight reel on social media makes it look like everyone is on a sun-drenched holiday eating lobster. Suggest the picnic instead of the restaurant or the day at the beach instead of the expensive holiday.
“You might be surprised how relieved everyone else is when someone finally says it and if the pressure is coming from people who won’t flex, that’s worth noticing too.”
