What is a reasonable budget for a holiday? Expert explains

South Wales Argus

27-07-2025

Based on a survey of 2,114 UK adults by Starling Bank, holiday spending has increased by a quarter (23%) since 2023.
Brits are spending £822.50 more per week abroad than at home, compared to £668 two years ago.
However, they are also taking a savvier approach to their holiday spending, with nearly eight in ten (78%) holidaymakers setting a budget ahead of their trip, compared to 66% of those surveyed by Starling in 2023.
It's important to remember that there is no one-size-fits-all approach to budgeting, and it will look different for every trip.
Becca Stroud, Personal Finance Expert at Starling Bank, has shared a few tips for creating a reasonable holiday budget.
What is a reasonable budget for a holiday, and how to create one?
Think about the spending involved
A good first step to creating a reasonable holiday budget is to make a list of all the things you need to account for when away and estimate how much it will all cost.
Becca adds: "If your bank offers spending insights, you can try analysing your previous trip to see how much you typically spend on categories like drinks, groceries and experiences while away.
"Once you know how much you'll need to roughly put aside, you can start saving up for your trip."
Save up in advance, and separate out your savings
Creating a dedicated savings fund can prevent you from accidentally spending money intended for your trip.
Set a limit for how much you'd like to spend while you're away
Planning what you'd like to do on your trip can be helpful in creating a rough daily spend target to stay within your holiday budget.
Becca adds: "Some banks, like Starling, let you ringfence your funds into separate Spaces, so why not get creative with them?
"You could create a Space for each day of your trip, or separate your Spaces for experiences, meals out and essentials."
Keep track of your spending
It's easy to lose track of your spending on holiday, particularly when you're having a nice time and you don't want to keep checking exchange rates.
Becca explains: "It's worth having a daily check-in while on holiday to make sure you're aware of what you're spending.
"To make this easier, you can turn on notifications for each time you make a purchase - this will give you a reality check and remind you to keep an eye on your budget."
Don't tip your bank
Transaction fees can be an issue when paying for items with your debit card, but some banks don't charge them.
Becca says: "To avoid transaction fees make sure you click the option to pay in the local currency as opposed to in pounds.
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"These small savings add up, giving you some extra cash to play with for guilt-free treats and activities."
Consider a holiday spending buffer
If you can, consider having a holiday spending buffer in place for any emergencies or unexpected expenses while away
Becca explains: "Our research found that two-thirds of those surveyed created a buffer, setting aside a whopping £519.70 on average."