A new survey by the UK’s leading credit building business, Loqbox, reveals insights into how UK parents have prepared to fund summer travel and days out, childcare, and children’s activities such as holiday clubs amid the ongoing cost-of-living crisis.
The UK summer holidays mean that parents are faced with around six to seven weeks of juggling work and household obligations with their children at home. In many cases, a large chunk of the family budget goes towards childcare and activities. For example, a family in Britain will pay nearly £1,000 for six weeks of holiday childcare for a school age child, more than twice as much for six weeks during term time.
The survey, conducted in conjunction with polling firm OnePulse, found that parents across the UK are employing a variety of strategies to manage the increased summer holiday expenses:
Over half (56%) are cutting down on non-essential spending.
51% are closely tracking expenses regularly to stay within a budget.
A third (34%) are actively searching for deals and discounts to keep expenses low.
34% are setting a weekly or monthly budget.
Over 20% are using funds saved throughout the year, specifically for this time period.
While 17% are turning to credit cards or loans.
The data reflects how parents are taking a proactive approach to managing their summer budgets. The high percentage of parents cutting back on non-essential spending, coupled with the sizeable share closely monitoring their expenses, points to a clear prioritisation of careful money management. This budgeting-focused mindset reflects the financial pressures that many households are facing due to the ongoing cost-of-living challenges.
At the same time, the notable proportion of parents seeking out deals and discounts suggests they are also employing more strategic purchasing tactics. This budgeting strategy highlights the importance parents are placing on affording summer activities and obligations.
During the summer holiday period, UK parents rank holidays and trips as their top financial priority, followed by daily expenses, children’s activities, and funding school uniforms and supply costs. To fund their summer travel plans, parents are relying on budgeting and saving strategies:
76% are using existing or dedicated savings.
Only 13% are using credit cards or loans to finance their plans.
6% are borrowing money from friends and family.
7% are utilising travel rewards points.
5% are looking at other forms of borrowing.
This data suggests that many UK parents are prioritising summer holidays and trips, but they are being more financially prudent by relying on savings, budgeting, and limited borrowing to fund these expenses, rather than opting for credit-based financing. The high percentage of families (23%) without travel plans may reflect the economic pressures some households are facing.
Gregor Mowat, Co-CEO and Co-Founder of Loqbox, said: “While summer offers more family time, it also brings financial and social pressures. Persistent high living expenses, such as high food and fuel prices, have put additional pressure on family budgets over the summer period. Many parents are likely to worry about their financial stability as they balance paying for childcare, food, entertainment, and holidays during the cost-of-living crisis.
“It’s no surprise that holidays and trips out are the top priority for parents, even as the cost-of-living crisis rumbles on. Our data indicates that parents are willing to forego other activities to spend money on holidays and trips, along with spending on children’s activities, to create memorable experiences for their families and ensuring children are entertained during the summer holidays.”
Tom Eyre, Co-CEO and Co-Founder of Loqbox, commented: “Our survey reinforces what we are seeing across the UK, not just with parents but with all demographics, ages and backgrounds. In response to the ongoing cost-of-living crisis, there is a sizeable shift of people building up financial buffers to fund their spending plans and achieve lifestyle goals. Having savings safety nets in place means people are less reliant on costly forms of credit and other types of borrowing.
“With access to the right financial education and personal budgeting tools, people can be empowered to make more informed and responsible purchasing decisions and boost their financial wellbeing – not just for themselves but for their families too.”
The survey emphasises that, amid a backdrop of economic pressures, parents want to maximise their spending power to afford the things that matter. Survey respondents indicated significant cutbacks they’ve made to afford their travel plans and entertainment for their children during the summer period, such as reducing overall spending and eliminating certain expenses altogether. Lifestyle changes such as cutting back on social activities and discretionary spending like TV packages and clothing purchases were mentioned frequently.
Overall, the survey aligns with broader market trends where seasonal expenditures spike due to increased family activities and travel during the summer period. At a time when inflation remains high and everyday activities become more expensive, budget management becomes even more critical to balance enjoyment and essential expenditure.
Full survey results can be found in The Loqbox Parent’s Planner: Managing Summer and Back-to-School Costs, which can be downloaded here.
Today, Loqbox has helped more than one million members to take control of their finances while they build their credit score with the UK’s three main credit reference agencies: Equifax, Experian and TransUnion, build their savings and build their financial knowledge. Overall, 80% of members feel more knowledgeable, confident and in control of their finances after using Loqbox and 9/10 members who track their credit score have seen improvements. Whether they’re struggling to save, have poor credit histories, or just want to learn more about how the financial system works, Loqbox provides people with the knowledge, confidence, and tools to reach their financial goals and feel better about money.