The average British holidaymaker runs out of money exactly half way through their sunshine break, it has been revealed. Despite saving an average of £600 for their time away, the average person will run completely out of money 7 days into a typical two week break.
Day trips, random gifts and mementos are just some of the things Brits splash the cash on when abroad, while underestimating the cost of food and alcohol also takes its toll on the holiday budget for many.
The study of 2,000 holiday makers found a reckless one in ten splashes the entirety of their spending money within two days of touching down at their destination.
A spokesman for Kalixa Pay, which commissioned the study, said:
”As much as we all try to stick to a budget when we go on holiday, the results show how often things don’t go to plan.
”This can be down to a combination of things such as getting confused about exchange rates, underestimating costs, being unaware of hidden payment charges from your bank or simply getting lost in the moment and losing our spending inhibitions when abroad.
”It can be hard to gauge how much money you’ll spend if visiting a place for the first time and it’s easy to miscalculate or, as the results show, lose track and control of our spending.
”Taking sensible measures to ensure your money is secure and safe in a way that allows you to monitor your spending will help to get the balance of a great holiday, without the horror that comes with checking your balance when you get home.”
30% of tourists blow their entire budget in under five days, so it’s perhaps no surprise that the average tourist goes over budget by £150.
And this leads to one in four people taking three months or more to pay off their overspending, spiralling them into financial difficulty.
A care-free one in four people don’t save ahead of their holiday, and rely on borrowing money on a credit card instead.
In fact, 43% of those studied said when it comes to going abroad ‘common sense flies out the window’ where money is concerned.
While a third say their annual holiday abroad is the only time in the year when they really go wild with their spending, and a fifth adopt the strategy of ‘worrying about it when I get home’.
But the pain really hits home when us Brits land back in the UK – 47% have been hit by the horrific moment of checking their bank balance and wondering how they managed to spend so much.
A worried 65% of the study said keeping their money secure while abroad was a constant concern.
Paying for food was the most likely thing to absorb the holiday money, catching out tourists with prices being far higher than expected.
The Kalixa Pay spokesman added:
”Life is for living and there seems to be a growing tendency to embrace the holiday spirit which is great, so long as it doesn’t come at a huge cost to your personal finances later down the line.
”Our research found that over 55% of us usually take our spending money as cash, so it is not surprising that a major concern for holidaymakers is keeping their money secure.
”Proper planning, budgeting and knowing your finances are secure can help to ensure a well-deserved break is enjoyed with that all-important peace of mind.”