How to spread the cost of summer
From holidays to home improvements, the cost of summer soon adds up. Planning ahead can help you make the most of it without breaking the bank.
Key takeaways
Start early to spread the cost of your summer.
Choose the right way to pay, whether you're making big purchases or spending abroad.
Grow a summer savings pot and free up extra cash by switching household bills.
Make summer costs more manageable
Smart spending now can help you spread the cost of your summer plans. Instead of paying for everything at once, consider booking travel, accommodation, or activities in advance.
With a cashback credit card you could earn up to 1% back on purchases, often as discounts, cashback, or vouchers.
Personal Finance & Insurance Expert
Maximise your cashback
Cashback credit cards are most beneficial for those who can pay off their balance in full each month.
Using the card for everyday spending can help maximise the cashback earned, but it's crucial to be wary of the interest and fees that can quickly negate any rewards.
For those who may carry a balance, a card with a lower APR or a 0% introductory rate on purchases might be a better fit.
Compare credit cards from 22
The best time to look for summer deals
The best time to start looking is today.
Travel is an area where planning ahead can make a big difference. Flights and accommodation are often cheaper when booked early.
Seasonal promotions, flash sales, and early booking discounts can all help reduce costs. Before making a purchase, shop around. Compare prices, and look for additional discounts, rewards, or cashback.
Prices can change quickly, and the best deals often sell out fast, so it pays to be ready to book when you find a good option.
Personal Finance & Insurance Expert
AI makes holiday planning more affordable
Airlines and hotels often use dynamic pricing, where prices change based on demand, time of booking, and other factors. Free AI tools such as ChatGPT can analyse historical price data to predict future prices, giving you a heads up on the best deals.
What’s more, it can suggest cheaper travel destinations that you might not have considered by considering your local airport, preferences - such as climate, activities, and culture - and, most importantly, your budget.
Find more ways to save on your holidays with our smart travel tips.
Everyday spending accounts that work harder
Personal Finance & Insurance Expert
Our expert says
We tend to overlook our current accounts but they are valuable weapons in our financial arsenal and even offer a cash incentive for switching (at the time of writing you can get up to £500 with MoneySuperMarket). Some perks can genuinely save us money when they fit our needs, and match our spending and saving habits. But even with the switch guarantee, we don't vote with our feet often enough when the account, service or provider isn't what we need or really want. It's high time we started flexing our muscles by switching our current accounts and making those providers work harder for us and our money.
Your current account can do more than just hold your money. Choosing the right one could help you save or even earn a little extra towards your summer plans.
Some current accounts offer cashback on everyday spending, which can build up over time and be put towards holiday costs like meals, activities, or travel. Others come with perks that are especially useful if you’re going abroad. For example, some banks don’t charge fees for spending overseas, while others offer interest on your balance or rewards on debit card spending.
These features can make a real difference, particularly if you’re using your account regularly in the run-up to summer or while you’re away.
Before switching or opening a new account, it’s worth comparing:
Cashback rates and any monthly fees
Overseas spending and ATM charges
Interest rates or reward schemes
Any eligibility criteria or minimum pay-in requirements
Choosing a current account that fits your lifestyle can help stretch your budget further and make your summer spending go that bit further.
Big purchases
If you need extra flexibility for larger costs, there are a few borrowing options to consider. A 0% purchase credit card can provide short-term flexibility, offering an interest-free period that gives you time to repay what you owe before interest is charged.
If you keep up with repayments and clear the balance before the interest-free period ends, you won’t be charged interest.
For larger expenses, like home improvements, a personal loan may be the right choice. A loan usually comes with fixed monthly repayments that make budgeting simple. Shop around to find the best rates and only borrow what you can afford to repay.
🚩 Missing loan or credit card repayments can affect your credit score and increase the cost of borrowing.
Saving for summer
Regular saving can help you to meet unexpected costs or treat your family to a special activity, day out, or weekend away this summer. Maybe there could even be a rainy day or two.
Putting aside money each week into an easy access savings account can help you grow a summer savings pot you can dip into whenever you need to.
You can compare easy access savings accounts offering interest rates up to 4.75%
Spending abroad
Using the right card abroad can help you avoid fees and stay in control of your spending.
Personal Finance & Insurance Expert
More of your money goes on your trip, rather than on fees
The last thing you want to worry about while on holiday is being ripped-off when using your credit card to pay for things. By choosing the right type of card in advance, you can save yourself a packet as you won’t pay a fee for each purchase and some may even waive cash withdrawal fees. This means more of your money goes on your trip, rather than on fees.
Travel credit cards are designed for overseas use. Many don’t charge foreign transaction fees, which are often added to standard cards. This can bring down the cost of holiday spending. Some also offer rewards like cashback or air miles. You’ll usually need a good credit score to apply.
Interest rates can be high, so paying off the balance in full each month helps you avoid extra charges.
Prepaid travel cards let you load money before you go and spend in foreign currencies. This can make it easier to budget and avoid overspending. Some cards offer fixed exchange rates, although rates and fees vary depending on the provider.
Comparing both options can help you find a cost-effective way to spend abroad. Before you choose, check for:
ATM withdrawal fees
Currency conversion charges
Inactivity or top-up fees
If you are going abroad, don't forget to get travel insurance. Compare travel insurance from 58
Avoid summer overspend
Creating a clear budget and tracking your spending is key to staying in control of your finances this summer. Plan ahead, shop around, and enjoy it without putting unnecessary pressure on your finances.
🚩 If you're having a problem with money, Stepchange and Citizens Advice can help.
Author
Alan Cairns
Senior Content Editor
Alan breaks down subjects like money and energy into plain English to help you save money.
