Summer is a time of joy and relaxation, but it can also be a financial minefield. As the school holidays approach, families are often faced with a daunting task: how to keep the kids entertained without breaking the bank. According to a recent article, the six summer spending traps that could cost you £2,300 are airport expenses, one-off spends, summer socials, treating the kids, garden splurges, and foreign spending fees. In this article, I will delve into each of these traps and offer my expert commentary and analysis on how to avoid them.
Airport Expenses
One of the biggest financial drains during the summer holidays is airport expenses. Families often spend an average of £36 per person before a flight in shops, bars, and restaurants, which can quickly add up to around £100. To avoid this trap, I recommend being as prepared and considered as possible. Take food and refillable water bottles, and have a plan in case the flight is delayed. Don't fall for airports' expensive travel-size toiletry trick; instead, decant liquids into smaller plane-friendly containers. For example, swap a mini 60ml Radox Feel Awake shower gel for more than twice as much in a regular 225ml bottle.
One-Off Spends
The occasional takeaway, a few ice creams, or popping out for drinks with friends may seem like small splurges, but they can add up to an extra £50 a week, or £300 over the six-week holiday. To avoid this trap, I suggest budgeting for the little treats. Deduct essential expenses such as bills and food costs from your monthly income, and divide it by four to determine your weekly disposable income. Look for ways to cut the cost of small treats, such as making your own iced coffee by freezing the last inch of coffee from the pot and adding a cup of cold milk, which will save you £3.50 compared to buying from a cafe.
Summer Socials
Summer is also the season of beer gardens and World Cup parties. Three pints, a burger, and transport home could easily set you back £45, compared with £12.50 if you watch from your sofa at home. To avoid this trap, I recommend hosting your own World Cup party. Invite friends to bring an £8 bottle of wine to your place instead of paying £25 in a bar. Pimm's and lemonade will cost around £20 a pitcher at the pub, but you can mix your own in an empty two-litre bottle, with a litre of Pimm's for £10.
Treating the Kids
The biggest summer expense is keeping the kids entertained. Last summer, a family of four spent £992 on 11 popular days out. Nearly half of parents have borrowed money for family days out, using credit, overdrafts, or buy-now-pay later. To avoid this trap, I suggest looking for free events such as local festivals, nature trails, workshops in places like Pets At Home and Ikea, free museums and art galleries, and free swimming sessions during the holidays. Libraries, leisure centres, and local councils often put on free events that don't get nearly enough attention.
Garden Splurges
No garden seems complete now without plush seating, a huge barbecue, twinkly lights, and even outdoor rugs. According to financial services firm Vypr, it is easy to spend £500 on big garden buys, but you can get the look for less. Your first stop should be second-hand sites like eBay or sites where people are giving items away for free, such as Freecycle or Freegle. Look on YouTube to see how to make furniture out of wooden pallets; it's a simple DIY job that will give you satisfaction.
Foreign Spending Fees
Using a standard UK debit or credit card abroad can add unexpected costs to your holiday. Many banks charge up to three per cent in foreign transaction fees, meaning a family spending £2,000 could pay £60 in card charges alone. If you withdraw cash, you'll often face an additional two to three per cent withdrawal fee, plus charges from the local ATM operator, which could be up to £5. To avoid this trap, I recommend getting a card that doesn't charge fees when used abroad. For example, with Chase Bank or First Direct, you won't pay fees for withdrawing cash or paying for things. Monzo and Starling Bank also offer fee-free spending and can withdraw up to £300 a day.
In conclusion, summer is a time of joy and relaxation, but it can also be a financial minefield. By avoiding the six summer spending traps, you can keep the kids entertained without breaking the bank. Remember to be prepared and considered, budget for little treats, host your own World Cup party, look for free events, get creative with garden buys, and choose the right card for foreign spending fees. Enjoy your summer holidays!
