Mum and Dad bail out kids on gap years

With many gap year holidaymakers having embarked on their trips in the first quarter of this year, new research out today suggests parents could be receiving a call this month to bail out their kids financially.

The research by Post Office Travel Insurance revealed that nearly a third (29 per cent) of those on gap years turn to mum and dad for financial help while away. 20 per cent run out of money in the first three months, with parents assisting their children with an average of £772 while they are away.

Other methods used to help fund the trip include credit cards (35 per cent), overdrafts (25 per cent), bank loans (13 per cent) and student loans (16 per cent).

Nine per cent resort to finding work while away due to lack of funds. 43 per cent of those who work while abroad admit to not having a working visa, despite this being a legal requirement.

29 per cent admit to spending more than they anticipated with entertainment being the biggest cause of over spending (15 per cent). This is followed by struggling to keep track of exchange rates and different currencies (10 per cent).

In total, the average total amount spent on a gap year holiday, including flights and spending money, is £3,736. However, more than one in ten (12 per cent) spend more than £8,000 on their trip away. Travellers spend the most on average when they are on seven to nine month trips rather than 12 month holidays, suggesting that the longer you are away, the better you become at budgeting.

Length of trip Total Cost (including flights and spending money)
2 to 3 months £3324
4 months to 6 months £4144
7 months to 9 months £4127
10 months to 12 months £4907
A year or more £4595

One in ten gap year holidaymakers end up having to delay going on their trip because they fail to save enough money before they planned to go.

52 per cent of those who have been on a gap year admitted to not researching the cost of living in the countries they visited and 69 per cent did not look into local laws and customs. When it comes to travel insurance, just 25 per cent purchased a specific gap year insurance policy with six per cent not taking out any insurance at all.

Rachel Croft, Head of Post Office Travel Insurance said: "These findings show that people don’t always take adequate steps when preparing for such a big trip away and as a result often end up in financial trouble. Doing your research in advance can really help with budgeting and mean you can enjoy your holiday with peace of mind.

"It’s worrying that so few gap year holidaymakers take out adequate insurance. The most vital areas to be insured for are medical treatment, repatriation in case you need to be flown home, and cancellation in case you fall ill and are unable to travel. It’s one thing to ask parents to loan you a few hundred pounds, but asking them to fork out for your medical expenses or flight home if you are ill can potentially run into thousands."

The Post Office has launched a new Explorer travel insurance policy aimed at people aged 18-35 planning a career or study break between two or 12 months in length. 90 activities are covered as standard and the policy includes one visit home if you get home sick. For more information about Post Office Travel Insurance, visit postoffice.co.uk.