Parents to splash out almost £500 entertaining kids this summer
UK parents will splash out £492 entertaining their children this summer – a 26 per cent increase on last year suggesting that parents are feeling a renewed sense of confidence, according to Post Office’s annual Parents’ Summer Spending Report. Parents also expect to see further damage done to their bank balance as they shell out £66 on other people’s children, £106 on childcare and £119 on petrol.
While children all over the UK are eagerly awaiting the summer holidays, more parents than ever before (58 per cent) are still fretting about the cost of keeping their kids entertained – despite planning to spend more. Worryingly, nearly half of all parents (46 per cent) also feel under pressure to keep up with other parents’ spending.
To cover costs, one in four parents expect to dip into savings (24 per cent), and a further 16 per cent would consider stopping saving altogether to make ends meet. Nearly one in five will rely on their credit card (18 per cent), while 17 per cent are prepared to work overtime to boost the family’s monthly budgets. In an effort to keep costs down, one in 10 (12 per cent) will rely on auction sites to pay for activities over the summer holiday.
When it comes to spending, the bulk of money will be spent on admission for various attractions, including theme parks and museums (47 per cent), while two in five parents (42 per cent) also plan to spend a significant amount eating out. A family holiday abroad is where nearly a third of all parents (29 per cent) expect to spend the most of their money. This is nearly double the amount of parents who planned to head off last year (15 per cent), perhaps indicating that the average family is feeling more confident about their finances.
Many mums and dads would also consider making personal sacrifices. A third of all parents would give up buying new clothes (34 per cent), while others would miss out on their regular takeaways (34 per cent) and resist buying treats such as magazines or coffees (34 per cent) this summer. Others would be forced to rely on more drastic methods as they watch their bank balance. Nearly one in ten (eight per cent) admitted that they would skip paying household bills and around one in twenty (six per cent) might take another type of holiday – this time from their mortgage payments.
However, two out of five savvy parents (41 per cent) have saved in advance for their summer holiday expenses. This represents a 12 per cent increase on the number of parents who planned ahead in 2013 (29 per cent) indicating that families have learned lessons from previous summers, with 29 per cent admitting that they spent more than they expected to last year entertaining their children.
Nick Kennett, Director of Financial Services at Post Office comments: “The significant rise in parents’ spending this summer may be due to families feeling a renewed sense of confidence as the signs of economic recovery take hold.
“The summer holidays are an exciting time for all and while it’s important to keep your children entertained during the summer break, it’s a good idea to plan ahead and budget wisely. There are a number of ways to manage your finances, including options such as credit cards, savings and overdraft facilities, but it's important to work out which one best suits your needs. It’s encouraging to see such a significant rise in the number of people saving in advance to cover their costs this year.”
Top tips for enjoying your summer holiday on a budget
Track down deals online, there are great discounts and 2 for 1 offers to be found to theme parks, the cinema, family days out and restaurants
Look out for offers at local attractions and events organised by your local community, these are often free or inexpensive
Travelling by train can also be cheaper if you book tickets in advance and avoid travelling at peak times
Some museums have free entry throughout the year and the summer break is a great time to make the most of this
Whether you’re heading to the park, a museum or simply a day in town, take a packed lunch as eating out can be expensive
Look out for deals at supermarkets that could save you money on packed lunches or simply eating at home
Organise a fun-filled day at home such as cake making, painting, crafts or start a reading club
Filling up at a less expensive garage or driving in a way that’s fuel efficient could mean you save extra cash
A day in the garden or helping with the gardening can be just as fun as a day out at an amusement park and may save you some time on gardening yourself!