A study of 2,000 adults found that during the summer months, 18-34 year olds are prepared to part with £90.22 a week on unplanned activities
This season, those aged between 18 and 34 are expected to spend an average of £90.22 per week on spur-of-the-moment activities, totalling £1,170 on average. Most people confessed they are more inclined to make snap decisions about going out during the warmer months, than any other time of year.
These spontaneous activities often include last-minute trips to the pub, trips out and for some, even a festival. Brits predominately use the motto “you only live once” to justify for their spending. However, to fund these unexpected summer escapades, seven in ten will need to raid their savings, withdrawing an average of £125 on a monthly basis.
Rajan Lakhani, a personal finance expert at Plum, which conducted the study, commented: “When the days are longer and the weather is warmer, it is only natural we want to be out more taking part in activities.”
He added: “During the summer there is so much for young people to do; from festivals to day trips and holidays abroad, it’s no wonder so many people love to splurge.”
Lakhani also noted: “When you’re young you’re more care-free and have more wiggle room to be spontaneous in your life, but it does come at a cost.”
The research found only 14% of Brits feel financially prepared when it comes to last minute summer plans. Those who do end up spending their money spontaneously, 17% are left feeling guilty, while others feel happy in the moment but regret it later.
Four in ten confess they struggle to resist fun activities when the sun is out, even if their budget is tight. As a result, while most people will utilise their current account, 40% are likely to tap into an active savings account and an additional 15% will dip into their cash ISA.
To keep their finances in check, 37% would be inclined to use a budgeting tool that automatically analyses summer spending, as per the figures from OnePoll.
Rajan Lakhani from Plum added: “So it’s not just younger people who struggle to say no when the weather turns nice. The whole nation feels the pinch when something fun in the sun crops up.
“But it’s surprising how few people feel prepared for this, even though it seems to happen every year. Fortunately, there are automated tools that help you easily review your summer spending and help you get it under control.
“This includes lots of ways to manage spending, including savings tools like round-ups, which are designed to help you save whilst you spend, so spontaneous spending sprees won’t leave you feeling regretful.”