TSB: Summer holidays turn up the heat on family finances

According to new research from TSB, those parents living in London will see the biggest dent in their finances (£276), whilst parents in the South East expect to spend £239. Two in five parents (38 per cent) will have to dip into their savings to pay for additional spend.

Key findings from the research include:

Visiting attractions will be the biggest area of spending accounting for 32 per cent of costs when entertaining children over the summer. This varied widely across the country. For parents in London 19 per cent of their overall costs will go towards this, whilst those living in the West Midlands and Yorkshire will spend 36 per cent.

Two in five parents who will spend more this summer are unsure whether they will be able to comfortably afford the summer holidays (42 per cent), with around one in eight (13 per cent) saying that financially it’s not the easiest time.

While three in five people (61 per cent) will use their regular wages to pay for the additional spend, two in five (38 per cent) will have to dip into their savings. Just over a third of people (35 per cent) will use their credit card to pay for the additional spend.

Of those parents using their credit cards to pay for entertaining their children this summer, they estimate that it will take them an average of two months to pay off the total balance they are likely to incur.

Paul Izon, head of savings at TSB, said: “Summer holidays can certainly put a financial strain on the purse strings, so planning ahead and having a savings pot can really help alleviate some of the pressures and can mean that the summer holidays can be enjoyed rather than being a financial burden.”

Other main costs included an increase in food shopping (15 per cent of all additional spend), family meals out (12 per cent), treats, such as ice creams, drinks and toys, (11 per cent) and the cinema (11 per cent).

Most parents are prepared to make personal sacrifices so that they can keep their children happy over the summer. The areas parents are most likely to cut back on are clothes and shoes (37 per cent less spend than normal), going out (35 per cent will spend less) and foregoing beauty products (20 per cent less spend).