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Consumers raid savings to pay for summer holidays

Report highlights key areas of overspending for Brits

According to the report, Brits will spend £1,824 of their savings this summer

According to the report, Brits will spend £1,824 of their savings this summer

Consumers across Britain are dipping into their savings in order to fund summer holidays and weekend breaks, according to a new report which reveals that one in three people will do so in the coming weeks.

On average, people will take £1,824 out of their savings accounts this summer to fund various experiences, with holidays accounting for the biggest proportion of expenditure, at 21%, the Halifax study shows.

After holidays and weekend breaks, overspending and unexpected home or car repairs are the most common reasons that people raided their savings, accounting for 17% and 16% of cases, respectively.

Resisting temptation

Forward-thinking approaches to savings appear to be on the rise, with 77% of people saving something over the last three months and putting away an average of £829, though 35% have raided their savings during the same period.

The study did highlight a gender difference when it came to savings habits, with men not only more likely to save, at 71% compared with 64%, but also likely to save more (£1,100 in the last three months compared to £570) and less likely to raid their savings (32% compared to 37%).

In all regions of the UK apart from London, the amount raided by savers was higher than the amount saved in the last three months.

Those living in the North East were most likely to have saved some money, with 90% having done so, while people living in the East of England were least likely, at 70%.

Meanwhile, consumers in Wales were the most likely to raid their savings, at 47%, while those in the West Midlands were the least likely to dip into their accounts, at 25%.

Always have a goal

Richard Fearon, head of Halifax Savings, commented: “Savings can be a great way to help you realise both long and short term goals, but, just like any other area of your finances, they are most effective when managed as part of your overall budget.”

Though it is great to have some money put aside for a rainy day – as 59% of people do – he noted that saving for something specific makes it harder to justify dipping into accounts.

The fact that people can see the impact on the things the money could be used for means this method could make it easier to accumulate savings and resist temptation – though the millions of Brits heading on holiday this summer may struggle to bear this in mind when the prospect of sun, sea and sand is so enticing.