Summer often brings a natural lift in consumer spending. Warmer weather, school holiday, socialising and leisure activities – more reasons to get outside, walk through shop doors or chill out behind hotel doors.
But making the most of those longer, brighter days can mean a little extra spending. And while the uv levels and feel-good factor are both high, caution hasn’t completely disappeared. So, let’s look at how to do it – without overdoing it.
Consumer confidence is coming back
Consumer confidence has been rising steadily, which means people are spending – but more carefully and consciously than before. It seems it’s all about striking a balance: cutting back where we can, so we can enjoy more of the fun stuff.
Hodge consumer research shows that between 2021 and 2024, people became increasingly optimistic about their finances and more confident in how to manage them. But last year, 28% of us were still making cutbacks, showing that even as sentiment improved, we’re still making deliberate choices about how and where we spend our money.
This is echoed in KPMG’s latest report, which found that 58% of people in Q2 2025 felt financially secure, up from 55% in Q1 — a modest but meaningful jump. That slight rise in confidence is starting to influence spending behaviour, particularly when it comes to summer planning.
The desire to spend is there…
Summer usually sees an uplift in household outgoings. According to the British Retail Consortium (BRC), retail sales saw a 3.1% year on year rise this June -boosted by a surge in seasonal spending on leisure activities, food and drink.
Ice cream runs, garden revamps and outdoor adventures all play a role in unlocking mood-driven, spontaneous, memory-making summer spending.
The Guardian recently noted a spike in sales of electric fans and sports equipment this year, but also highlighted that households are still under pressure when it comes to the basic spending, particularly on food as we continue to see the cost of our groceries rise.
… but we’re still cautious
Even with confidence on the rise, many households are continuing to keep one hand firmly on the purse strings. That same KPMG data shows that seven in 10 people still plan to take a holiday this year, but 75% of them are actively trying to cut travel costs compared to their last trip.
In short – it seems we’re ready to spend, just not wastefully. And that mindset is showing up across everything, from how we holiday to weekly food shops.
Find the right balance for your summer
Finding the right balance — so we can make summer plans, but make them smarter — is where the sweet spot lies.
While some may trim down on summer holiday costs, others are swapping big-ticket items or trips abroad for staycations and cheaper days out. And a lot of household spending decisions are becoming a trade-off: less of one thing to make room for another, so we can make the most of the summer without the stress.
Travel, food and utilities – the big three cost drivers
Even though utilities don’t spike quite as sharply in the UK (think: less air con, more open windows), there’s still a seasonal shift in habits that add up. Here are some of the ways we spend over the summer.
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Travel
Whether it’s a long weekend or a two-week break, this is often the biggest chunk of summer spending. Even staycations can cost more than expected once you factor in transport, food and entertainment .
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Food
Summer means BBQs, picnics, hosting friends, garden drinks and the odd ice cream run. Most of us take a more relaxed approach to our food budgets — which can quickly spiral.
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Utilities
Less heating, sure — but more showers, more laundry, and more fridge-doors opening every five minutes. It all adds up.
Start with a season specific budget goal
Ask yourself: what does my ideal summer look like, and what do I want to prioritise?
Instead of a strict all year round budget, think about what you want to spend your extra money on this summer – a family trip, weekly days out, or just a little bit of spontaneous summer fun.
This is where flexible planning can win. It’s all about finding smart ways, put practical tips into play and enjoy the sun even with a summer budget.
Calculate your ‘fun money’ allowance
The 50:30:20 rule — 50% on needs, 30% on wants, 20% in savings — is a great guideline. But it’s OK to flex it slightly over the summer break.
Create separate savings pots
It’s a small habit that can make a big difference.
- A Holiday Fund for trips away
- A Summer Extras pot for things like BBQs, kids’ days out or spontaneous fun
- A Buffer Pot for those last-minute or unexpected costs.
You might shift a little more into the “wants” pot for the next few months, and dial it back later in the year. It’s not about being rigid — it’s about being intentional.
Open an Easy Access savings account
If you’ve got a savings account that’s easy access but still pays interest, even better. You can dip into it when needed — without penalties or hassle.
Tips for cutting hidden costs at home
A few small switches at home can help free up money for the fun stuff.
- Audit your direct debits – cancel unused subscriptions, or pause streaming services while you’re outdoors more.
- Meal plan for BBQ season – reduce waste, avoid over-buying and make your weekly shop stretch further.
- Re-wear the wardrobe – before buying new summer clothes or beach towels, check what’s already hiding at the back of the cupboard from last year.
Slash your summer energy bills
- Line-dry laundry instead of tumble drying
- Only use fans in the room you’re actually in
- Don’t overload the fridge – it’ll work harder (and use more energy).
Avoid holiday bill shock
Hodge research found more than 20% of 25-34 year olds get caught out by unplanned travel costs — like excess baggage, insurance add-ons or roaming fees.
Avoid a financial summer spending hangover by:
- Booking with companies that include extras (meals, luggage, etc.)
- Checking mobile roaming charges, especially in Europe
- Using a prepaid travel card with no overseas fees – or check if your credit card is free to use abroad
- Plan day trips and activities before you go — include a mix of paid and free activities.
Grab early-bird deals & loyalty perks
- Book in advance for better rates
- Use supermarket or banking reward points for discounts and deals
- Check if attractions offer free kids’ places, free meals or family discount.
Low-cost activities & free UK days out
From National Trust free entry days to local events, there’s plenty of low-spend fun out there, think:
- Open gardens and community festivals
- Splash parks, walking trails and city scavenger hunts
- Pack-your-own picnics and make a day of it.
Staycation hacks
- Turn a regular weekend into an adventure with themed local days out and low cost summer activities
- Use travel sites’ “anywhere” tools to spot last-minute local deals.
More ways to keep your finances on track
Weekly check-ins
Take five minutes each week to:
- Check what you’ve spent
- Adjust your pots
- Celebrate small wins (a low-spend weekend still counts!)
This keeps you feeling in control without turning your summer into a spreadsheet.
Accountability partners and family budgeting
Budgeting doesn’t have to be solo — or serious.
- Share a spending plan with your partner
- Give the kids their own mini budgets
- Set shared goals: one splurge this month, one save.
Plan next summer’s funds now
Imagine heading into summer 2026 with money already saved — that could be you this time next year.
Build a seasonal savings habit:
- Pay yourself first — move a small amount into a summer fund right after payday
- Even £20 a month adds up quickly
- Treat it as your “fun without guilt” pot.
Key takeaways for your summer budget
- Summer spending can be joyful and intentional
- Budgeting doesn’t have to mean saying no — just saying yes to what matters
- Start small, build flexibility, and spend smart — not more
- Remember to consider your financial goals before your splash the cash
How Hodge Bank can help you save smarter
The Hodge Easy Access savings account offers a convenient, flexible way to save your money. With no fixed term and a variable interest rate, you can access your savings at any time — no strings attached.
It’s a safe place to build savings like an emergency fund or plan for seasonal expenses. You can watch your money grow when you don’t need it and have easy access when you do.