Everyone loves a holiday, but how we book, plan and spend on holidays can vary hugely.

Are you planning every pound in advance, or do you switch off completely and deal with the bill later? Maybe even somewhere in between.

Take our holiday spending vs saving quiz to find out what type of holiday spender you are and then explore our holiday budgeting tips and expert-backed ways to manage your money before, during and after your trip.

Are you a holiday spender, saver or somewhere in between?

There’s no “right” way to spend on holiday, but understanding your spending style could be a good way to plan and budget for your getaway. Remember, your summer holiday spending habits might change depending on who you travel with, where you go, or how often you get away.

Expert-backed holiday budgeting tips

To help you get the most out of your trip, our savings expert, Tim Driffill offers holiday budgeting tips to support better money management before and during your break.

  • Hodge Piggybank Gold icon

    Try different savings pots for each goal

    Having separate savings pots for different goals can make it easier to manage your money and track your savings. For example, by keeping your holiday savings separate from your emergency fund or house deposit you may be less likely to dip into the wrong pot. It can also help with effective budget planning for a two-week holiday, where costs can quickly add up across flights, accommodation and spending money.

  • Gold investment icon

    Automate your savings where possible

    Setting up automatic transfers on payday can help make saving consistent and effortless. You may find popular budgeting methods like the 50/30/20 rule a useful guide when thinking about how to budget for a holiday alongside other financial commitments.

    Read more
  • Hodge Balance Gold icon

    Set a realistic savings goal

    Having a clear target can help make saving more achievable. Think about everything your holiday includes – flights, accommodation, transport, food, activities, and spending money. It can also support your holiday budgeting and reduce the risk of relying on credit or dipping into other savings.

  • Hodge Coin Hand Gold icon

    Sometimes we need to cut back to save

    Remember, it’s normal to adjust everyday spending when you’re prioritising a holiday fund. This is where spending money vs saving money becomes important. Small sacrifices, like fewer takeaways or fewer subscriptions, can help build your holiday pot faster. It doesn’t need to be all about restriction, think of it more as prioritisation.

  • Hodge Growth Gold icon

    Regular savings make a big difference

    Consistency is a great way to build good saving habits. Even small, regular contributions can build up significantly over time, making how to save money feel more achievable and less overwhelming.

Ideas for saving money on holiday

If you’re looking for some practical holiday budgeting tips, here are a few ways to stretch and track your budget while you’re away.

  • Use a travel-friendly card - Some cards charge fees abroad. Choosing the right one can reduce unnecessary costs.
  • Check where’s best to exchange currency - Places like airport rates are often poor. Do some research and to get the best value.
  • Paying in local currency - Currency conversion, or choosing to pay in GBP while abroad, is usually more expensive. Local currency is almost always cheaper.
  • Build a buffer into your budget - Try setting aside some of your budget for unexpected costs like excursions or last-minute spending.

This article is correct at time of publishing and for general information purposes only. Our blogs my include a range of topics related to personal finance, including lifestyle and financial behavioural styles. This content is not intended to give advice or guide individual circumstances. If you need additional support, please reach out to charities offering support. For financial advice, we recommend you speak to a professional financial adviser. You can find a financial adviser and further personal finance information at unbiased.co.uk.

Read more
Newsletter signup
Carefree woman traveller with a backpack walks across a field in the sun with a smile on her face.
Savings News

What’s your relationship with money?

Our relationship with money is shaped in early life, yet few of us are taught how to build a healthy one. Take our quiz to find out how your habits, emotions and mindset influence your finances.

Read more
Grandmother and granddaughter piggy bank
Savings News

Your 2026 ISA options explained

The tax year ends Sunday 5 April 2026, Easter weekend. So, before the eggs are hidden and crafting begins, it’s worth checking if you’re making the most of your ISA allowance and planning ahead for the next tax year.

Read more