Most often, residents’ summer budgets are unbalanced by travel and vacations – about 43% of respondents spend more on them than planned. One in four residents spends too much money on entertainment, such as restaurants or concerts. One fifth indicate spending more on home or garden improvements, 14% on weddings, christenings, or other celebrations, and 9% on children’s camps and entertainment.
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“Vacations, children’s activities, celebrations, or home maintenance are not completely unexpected expenses – they recur every year. Therefore, it is worth planning them as a separate part of the annual budget: to anticipate in advance the amount that can be allocated for summer, to separate necessary and emotional expenses, and to keep some money in reserve. In summer, people want to relax, but it is important not to forget that after it ends, usual financial obligations return – school, clubs, heating, and other autumn expenses,” says Julius Ivaška, Director of the Business Service at Urbo Bank.
Less income – fewer unplanned expenses?
According to J. Ivaška, the areas where people spend more money than planned vary depending on age. Survey results show that younger residents (18–25 years) mostly spend on entertainment – about 36% and celebrations – about 27%. Meanwhile, those aged 46 and older mostly spend on home improvements or garden work – about 22–24% of respondents mention this.
“Younger people’s summer expenses are more often related to spontaneous decisions and entertainment, while for older residents, more money is required for the home, garden, or other seasonal work. Additionally, residents aged 56 and older are the least likely to exceed their planned budget – 38% of respondents in this group say they do not spend more than they planned. This suggests that with age, financial habits become more stable, and summer decisions less spontaneous,” notes J. Ivaška.
He also finds it interesting that higher income does not necessarily mean stricter financial planning or a larger financial cushion. On the contrary, higher-earning residents more often exceed their planned budget for travel and entertainment.
According to the survey data, residents who spend more than planned on travel and vacations mostly have household incomes of 1–1.5 thousand euros per member – about 57% of respondents in this group indicated this. Among the lowest income groups, where income per family member is up to 700 euros, this figure is about 33–35%.
“The summer budget is often unbalanced by greater financial freedom when a person can afford more – it is easier to agree to a trip, a spontaneous dinner, or a more expensive event. However, overall, only 28% of respondents said they spend in summer as much as they planned. This shows that the budget is influenced not only by income or age but by how well we can assess real future expenses and our financial capabilities,” shares J. Ivaška.
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How to conveniently track summer expenses
According to the Director of the Business Service at Urbo Bank, expenses in summer often grow unconsciously, so to regain financial control, it is first worth clearly separating necessary expenses, leisure expenses, and savings.
A commonly used guideline is the “50–30–20” rule: about 50% of income for necessary expenses, up to 30% for leisure and other desires, and about 20% for savings and reducing obligations.
However, if usual budget planning advice does not work and tracking expenses is difficult, J. Ivaška advises using practical tools. They help to notice growing expenses faster, more easily stick to set limits, and avoid hasty financial decisions.
“One of the simplest ways is to anticipate a specific amount for travel or entertainment in advance and regularly monitor how much is left. Depending on the service plan, a separate account can be used for this. It is also possible to set card transaction limits, enable notifications about account balance or larger debits,” he shares advice.
According to I. Ivaška, such solutions do not plan the budget for a person but help to see in time when expenses start to approach the set limit. Seeing how much money is left for vacations or entertainment makes it easier to assess whether a spontaneous purchase is really necessary, thus making it easier to stick to the planned budget.
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