Survey Reveals Holidaymakers Overspend Abroad: How Overspending Impacts Their Finances

According to a survey conducted by Starling Bank, holidaymakers tend to spend around £95.40 more per day while abroad than they would on a typical day at home.

This additional spending, combined with travel costs and accommodation expenses, adds up to approximately £688 more over the course of a one-week holiday.

The study highlights that half of those surveyed overspend while on holiday, with 11% of them ending up in debt due to their splurging.

Various factors contribute to this overspending, such as the desire to enjoy themselves and unforeseen expenses that are more costly than anticipated.

The Overspending Trend:

The survey reveals that 50% of holidaymakers admit to overspending when they travel abroad.

Among them, 16% make a budget before their trip and manage to stick to it, showing a proactive approach to managing their finances.

However, the majority of people wait until after their holiday to check their bank balance (41%) or receive their bank statement (37%), leading to surprises and financial stress when they realize the extent of their holiday expenditures.

Consequences of Overspending:

Overspending during vacations can have significant consequences on individuals’ financial well-being.

As a result of overspending, 15% of respondents reported having to cancel future social plans.

Moreover, 9% struggled to buy groceries, 8% had to borrow money from friends or family, and 7% faced difficulties in paying their rent or mortgage.

These challenges highlight the importance of financial planning and awareness while on holiday to avoid unnecessary financial strain upon returning home.

The Role of Budgeting:

Rachel Kerrone, the brand and marketing director at Starling Bank, emphasizes the significance of setting a holiday budget and regularly checking bank balances.

While this may not sound exciting, it can help reduce post-holiday blues and alleviate worries about overspending.

Taking a proactive approach to budgeting can lead to a more enjoyable vacation experience and ensure that individuals don’t face financial difficulties upon their return.

Conclusion:

Holidaymakers tend to overspend significantly while abroad, spending an average of £95.40 more per day compared to their daily expenses at home.

The allure of indulging in a holiday experience and unexpectedly higher costs contribute to this trend.

Failing to set a budget and monitor spending during the trip often leads to post-holiday financial surprises and, in some cases, debt.

Taking the time to plan a budget and keep track of expenses can help individuals make the most of their holidays without facing financial hardships afterward.