Summer holidays often strain family finances, but households may find that forming new habits now could stretch their budgets further during the warmer months, according to a finance expert.
With rising household bills and the impact of the conflict in the Middle East on prices, some people may have less disposable income than hoped for discretionary spending.
Chris Henderson, save and pay director at Tesco Bank, said: "As we look ahead to summer, many will be thinking about their social calendar and going on holiday. Sustaining an active social life can come with a cost, but it can be achieved with some healthy spending, budgeting and saving habits. Taking small steps now can make a world of difference and ensure you’re in a good financial position to enjoy the summer."
Five suggestions for stretching summer budgets
1. Prioritise savings pots
Splitting money across different pots can delay reaching individual goals. Consider how urgently you need a particular goal and whether to prioritise a shorter-term one, such as a holiday, over a less time-sensitive goal. However, long-term savings goals may still take priority.
2. Sell items you no longer need
Selling items through online platforms can generate extra cash for summer holiday budgets.
3. Try a budgeting “rule”
To stick to a budget, aim to set aside a percentage of income for savings, essential bills, and non-essentials. This helps allocate funds effectively.
4. Automate savings to remove temptation
Automatically transferring money into savings can help avoid the temptation to spend it.
5. Consider a “no spend” challenge
Setting a challenge to avoid discretionary purchases for a period can help reach savings goals faster. Cancelling little-used subscriptions can also boost savings.
