For many, summer is a time to relax and make the most of longer days, holidays and social plans. However, it can also bring unexpected financial pressure.
Our new research, based on a survey of 2,000 UK adults, explores Brits’ ‘summer money rules’. These reveal that seasonal spending can quickly spiral when plans, costs and expectations collide.
Longer days often bring more spontaneous plans, meaning small everyday expenses can quickly add up, often without people realising until it’s too late.
Are people budgeting for summer spending?
Our findings show that Brits are setting themselves rules for summer spending, but worryingly many are ditching a strict ‘bills first’ approach and willing to say yes to plans they can’t afford. This financial mindset that can cause serious problems further down the line.
Here are the top personal finance behaviours that they are adopting in summer:
- I change my spending habits for summer – 89%
- I set specific money rules for summer – 80%
- Bills and essentials always come before summer fun – 39%
- I won’t borrow money for holidays or days out – 28%
- Only say yes to plans I can comfortably afford – 26%
- Limit amount spent on socialising – 19%
- Avoid impulse spending when travelling – 17%
- Set aside a separate ‘summer pot’ or buffer – 17%
Whilst it appears that people are taking steps to becoming more financially responsible in the summer months, it’s clear there is still a way to go.
Nearly two thirds (61%) would prioritise summer fun over paying essential bills, whilst three quarters (74%) admit to saying yes to plans, even if they can’t comfortably afford them.
Summer expenses can soon get on top of you and even more so when four in five (81%) fail to limit the amount they spend on summer socialising.
Everyone loves a day out or a holiday, but 72% would borrow money to ensure they don’t miss out even if they are in financial difficulty.
Do people stick to the financial rules they set?
While many go into summer with good financial intentions, sticking to those rules can be a challenge.
Our research revealed that whilst four in five (80%) of people set personal spending rules for summer, over two thirds (69%) admit to breaking these at some point. This gap between intention and reality highlights just how difficult it can be to stay disciplined during high-spend periods.
What are the hidden costs of summer?
It’s not always the big expenses, like holidays, that cause financial strain. Instead, the smaller ‘little and often’ purchases that add up over time.
Top 10 hidden costs catching Brits out in summer
- 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%
- Energy use (fans, appliances running more often) -13%
The study found that eating out and takeaways are the biggest ‘hidden cost trap’, catching two in five (41%) of people off guard during the summer months.
Whilst nearly a quarter (24%) of millennials surveyed set ‘summer pot’ buffers, seemingly making them the most proactive planners, almost half (44%) are hit by eating out costs, suggesting their plans struggle to uphold.
These costs may look small on the day but are often overlooked when budgeting but can quickly spiral, especially during busy summer periods filled with social plans.
Are UK households equipped to handle emergency costs?
Unexpected costs can crop up at any time even during summer holidays which is full of plans and activities.
Top 5 ways Brits would cope with a £200 emergency cost this summer:
- Use savings – 45%
- Use a credit card -18 %
- Cut back on other spending – 10%
- I don’t know – 9%
- Delay payment and hope for the best – 5%
Our findings showed that some are building financial resilience with nearly half (45%) expecting to use savings to cover an unexpected cost and one in ten (10%) would choose to cut back on spending elsewhere such as subscriptions or eating out.
However, others lacked a plan. 1 in 20 (5%) would just delay the payment and ‘hope for the best’ and nearly one in ten (9%) wouldn’t know how to handle it.
Unsurprisingly, Brits over 55 years old admitted being the savviest savers with just under two thirds (58%) of over 65’s having savings for emergencies and almost half of 55-64-year-olds also using savings for unexpected costs.
Almost one in five (18%) use a credit card to manage emergency expenses. However, those with a low credit score can struggle to get help this way, so when other options are exhausted emergency loans are designed to help resolve short-term financial needs.
Where are Brits the most financially disciplined?
- Belfast – 55%
- Sheffield – 40%
- Birmingham – 38%
- Cardiff – 37%
- Leeds – 37%
- Newcastle – 36%
- Liverpool – 35%
- Bristol – 33%
- Edinburgh – 33%
- Nottingham – 32%
Belfast residents (55%) came out on top as the most consistent always sticking to their summer spending rules with Sheffield (40%) and Birmingham (38%) following suit.
At the other end, fewer Nottingham residents admitted to sticking to their summer budgets which comes as no surprise as over four in five (83%) don’t set aside a summer buffer.
Where hidden costs hit the hardest
Manchester residents (32%) see the highest impact from travel costs whilst Edinburgh residents (38%) revealed they were hit with petrol cost surprises.
Over half (54%) of Belfast admitted they are often caught out by the cost of eating out and 50% of Manchester residents felt similar.
How to control your finances better this summer
Based on our survey, there are four ways that people could be better with their finances this summer:
- Bills and essentials before anything else
Bills and essentials should be kept at the forefront. Ditching a ‘bills first’ mindset might feel harmless in the moment, but it’s one of the quickest ways for summer spending to spiral. Priority bills should always be the foundation of any budget, even during high-spend periods so that everything else can be enjoyed without financial stress.
- 50/30/20 rule as a budgeting framework
This method splits your take home income into needs (50%), wants (30%) and savings (20%), helping people find the balance between enjoying the season and staying financially in control.
Enjoying summer doesn’t have to mean overspending but rather being clear on what you can actually afford before the season gets busy
- You don’t always have to say yes to plans
There is a growing social pressure to say yes, particularly in summer when plans tend to be much more frequent and spontaneous.
Our findings revealed that many are agreeing to plans, even when it stretches their budget. This leads to ‘little and often’ spending building up over time. Whilst it can feel harmless in the moment, these costs quickly add up.
Being open and honest goes a long way as most people are far more understanding than we expect. Often, during high-spend periods, others will also be feeling similar financial pressures
- Recognise that summer isn’t unexpected
Instead of treating it as a one-off period of higher spending, planning in advance can help make it feel far more manageable.
Setting money aside gradually, even in small amounts, means you’re better prepared for when costs begin to increase.
Enjoying summer doesn’t have to mean overspending but rather being clear on what you can actually afford before the season gets busy.
Setting a rough ‘spend pot’ or buffer for social plans can give you the freedom to say yes without the worry later on.
Here at QuidMarket we encourage planning, awareness and buffer-building as responsible approaches to managing seasonal spending pressures.
