Despite often being thought of as frivolous and spontaneous, Gen Z are seemingly the most responsible when it comes their holiday season finances.
Regarding some of the bigger purchases in life such as a yearly holiday, 18-24-year olds were the most likely to save throughout the year for their holidays, the most value-conscious and the least likely to spend impulsively
Those falling in to the 45-54 age bracket are 50% less likely than Gen Z to save for the same purchases, with more than a quarter turning to their credit card -
Youth trumps experience when it comes to summer holiday budgeting, new research has revealed.
The research, which was conducted by 118 118 Money, surveyed the British public to find out how the Brits save for their summer holidays, and it seems that the younger generation have a thing or two to teach their elders on the value of money.
When it comes to setting aside a budget for a trip abroad, it appears that Brits are quite the organized bunch overall, as the vast majority of people will pay for their holiday through savings. 40.8% of holidaymakers will specifically save especially for their summer getaway, with a further 34.5% dipping into already accrued savings to jet off for some rest and relaxation in the sun.
It is estimated that over 12 million Brits admitted to spontaneously heading on holiday without cash in the bank to cover the cost, instead putting their holidays on credit cards or borrowing from other sources.
Whilst value for money is the most important factor for the majority of British holidaymakers (56.5%), there is a major generational shift when it comes to covering the cost of a holiday. Dispelling the myth of a free spending younger generation, Gen Z were revealed to be the most fiscally responsible generation when it comes to holiday budgeting. The majority of 18-24-year olds (64.3%) state they will save for their summer holiday throughout the year, making them the most likely generation to do so.
Age groups most likely to save throughout the year for holidays
- 18 – 24-year olds - 64%
- 25 – 34-year olds - 61%
- 35 – 44 – year olds - 40%
- 55 – 64-year olds - 34%
- 45 – 54-year olds - 33%
- 65+ year olds - 31%
Over a quarter of 45-54-year olds (25.6%) would turn to a credit card in order to fund their summer holiday, with almost a fifth of 65+ year olds not budgeting at all for their break in the sun.
It’s not just the generations that separates our holiday budgeting however, with British women seemingly much more likely to be impulsive with their summer spending. Men are almost twice as likely to save specifically for their summer holiday throughout the year, with 44.9% putting money aside compared to only 26.8% of females. This may contribute to the fact that more than twice as many females (35.9%) used their credit card to pay for their last holiday (compared to only 17.8% of males).
David Goodman, Managing Director (Loans) at 118 118 Money, commented on the findings: “Our research found that the British public are using a variety of methods to pay for their summer holiday.
“The findings suggest that whilst value for money is of the upmost importance when choosing a destination, when it comes to paying the balance of their holiday, the nation is split on the best way to do so.
“Interestingly, despite their younger age, 18-24 – year olds were shown to be almost twice as likely to save specifically for their holiday than those of their parent’s generation.
“By having a planned-out holiday budget before you jet off, you can ensure you have the best chance of avoiding any nasty surprises waiting for you upon your return.”
