If you think younger Australians are all gung-ho when it comes to spending, lashing out on avocado on toast like it were vegemite on toast, think again.
A new study has revealed that younger Aussies are actually the most disciplined of spenders, at least when it comes to holidaying.
The study, conducted by comparethemarket.com.au found that almost three in four (71%) young Australians (aged 18-24) worked out what they needed to save to travel, while very few (just 6%) didn’t plan ahead with their holiday expenses.
This compares favourably to baby boomers, only half (53%) of whom make an effort to save up and stick to a budget. Older Aussies are also more likely to go over a budget, with nearly four in ten (36%) spending $500 over budget, mostly (41%) on wining and dining.
Overall, the study found that only half (52%) of Australians calculate how much they need to save for a vacation and budget accordingly. But even among the planners, the majority (58%) still blow their budget when away. A third (36%) admit they don’t have a holiday budget.
Other overall findings in the study revealed:
· 58% of Aussies had blown their budget while away and withdrew extra cash
· 34% over-spent by $200
· 25% over-spent by more than $500
· 37% spent the extra money on eating out and drinking
· 25% spent the additional cash on local attractions
Consumer advocate and spokesperson for comparethemarket.com.au, Abigail Koch, says that when we travel, we can be more frivolous with spending, and start to use cash, especially foreign currency, a bit like “monopoly money”.
“Latest figures show that Aussies over-spend by more than $900 million on international travel each year,” she said.
“Though it is great to get in the holiday mood, splashing the cash while away can lead to a serious financial headache when you are back in real life.
“With many families travelling over the school break, it’s essential for Australians to have a holiday budget, keeping in mind the additional cash they may splash on unexpected activities.
“If you are heading overseas then there are certain payment options that are better value for international spending and can help you keep on top of your budget.”
To help keep your books in the black when you return from your holiday, Comparethemarket.com.au suggests travellers consider a travel money card, be aware of foreign transaction fees, use credit card points for bookings, and to check if your card offers complimentary travel insurance.