Taking a family of four on a summer holiday now costs an average of £1,212 according to new research quoted on the This is Money financial website. It’s a lot of money but we all, maybe subconsciously, appreciate that taking time out to spend with friends and family is important.And according to Oliver James, Britain’s best-selling psychology author, we’re probably right. He believes that parents waste hundreds of pounds on toys which they should be spending on family holidays instead. And that’s because holidays are where you create some of the most lasting family memories, whether you’re playing frisbee on a British beach or kayaking up the Amazon.
How do you Budget for a Holiday?
So if summer holidays really do matter so much, are we budgeting for them as well as we could? Back in January, which I admit is a better time to be thinking about budgeting for holidays than July, The Telegraph did the maths on a £1,000 family holiday, based on renting a gite in Normandy.
Return ferry fare: Dover to Calais £120
Petrol between Calais and Bayeux (666 miles return) £45
Motorway tolls (return) £46
One week rental of a 2 bedroom gite £500
Food and some meals out £289
Total cost £1,000
I think its really helpful to see the anatomy of a holiday budget in black and white. It’s an opportunity to ensure all the basic costs are covered and that there is still some wriggle room for moules frites at a pavement café.
But what if I wanted a bit more wriggle room for surfing lessons for the kids, a few more meals out or a slightly bigger gite with a pool? Clearly, I’d have to cut back a bit during the year and I’d be prepared to do that if I knew it would make the holiday just a bit more special.
A New Way to Save for Summer
Castlight’s Affordability Passport® is a revolutionary fintech tool we have developed to help borrowers secure a 10 minute mortgage. As part of the process it enables borrowers to share transactional data from their bank accounts, which is then categorised into 260 categories of income and expenditure in just a few minutes. Whether or not you need a loan just now, our Passport® process is a perfect way to achieve the most insightful review of your finances you will have ever experienced. It will tell you exactly how much you spend in every area of your life from Chinese takeaway to taxis, from food shopping to childcare or gym membership.
The Affordability Passport® – Coming Soon
The Passport® will give you the opportunity to micro manage your expenditure and empower you to make small changes that could make a big difference to that all-important summer holiday. For instance, when you see the costs going out in black and white you might decide to sacrifice the gym membership that you don’t really use that much and go for the villa with a pool. Or when you see what that Chinese take-away habit racks up over 6 months, you might decide to cut it back and give yourself a bigger budget to spend on meals out in France. Bon voyage!