- 36% stated they feel more pressure to spend in the summer months, with 25% highlighting fear-of-missing-out (FOMO) and trying to keep up socially was a key driver of overspending.
- Higher earners are more likely to be impacted; with 41% of those earning over £100k feeling the pressure to spend more during the summer and 50% admitting that overspending causes anxiety.
- Laura Newman, Head of NatWest Premier Financial Planning, shares advice to help with budgeting and preventing FOMO from driving overspending.
25th September 2024: As summer comes to a close and the nights draw in, new research from NatWest Premier reveals that half (50%) of Brits admit to overspending, with fear-of-missing-out being the primary driver for 25%. Furthermore, around one in five agree that the pressure to keep up socially was a significant factor in their spending habits.
The data shows people overspent by an average of £1179 over the summer - with men spending more - £1378 vs £998 for women. The research also reveals that 36% agree that they feel more pressure to spend in the summer months, with this number rising to 41% for those earning over £100k.
People mostly overspent on new summer outfits (22%), going out for meals (21%), spending while on holiday i.e. activities, excursions, meals, shopping (20%), spontaneous socialising (19%), and impulse purchases (16%).
People mostly overspent on new outfits (22%), going out for meals planned in advance (21%), spending while on holiday i.e. activities, excursions, meals, shopping (20%), spontaneous socialising (19%), and impulse purchases (16%).
Brits confessed that their summer spending was fuelled by the need to keep up with friends (23%), family (24%), and colleagues (19%).
Despite just under half (46%) sharing that overspending was causing them anxiety, over half (51%) of people are not setting budgets to help manage this busy social time of year. However, they do have plans to take back control. Looking to next year:
- Over a quarter (26%) would like more financial advice and support with saving
- One in four (26%) are planning to cut back on the number of holidays they take
- Nearly half of those surveyed said they plan to save more in the run up to summer (43%)
- Over one in three said they plan to work on learning to say no more often (37%)
NatWest Premier’s research reveals an interesting pattern when it comes to high earners (those earning over £100k) vs lower earnings brackets. High earners (over £100k) overspent by £2,400 on average this summer, whereas those earning between £75-100k overspent by a third less (£1,600), and those earning £55,000 or less overspent by £1,100.
High earners are also much more likely to feel pressure to ‘keep up with the Joneses’ - 36% feel forced to overspend to keep up with friends, while for others (40%) it’s keeping up with the family, and for 34% the pressure comes from competing with colleagues.
Half (50%) of high earners admit overspending causes anxiety. So, it is unsurprising that the group that were the most interested in receiving financial advice to avoid overspending next year was also those in the higher earning bracket (51%). 42% of those earning over £100k annually also stated they planned to go on holiday less next year to avoid overspending, and 60% said they’ll learn to say no to plans and overcome FOMO to avoid doing more than they can afford.
Laura Newman, Head of NatWest Premier Financial Planning, highlighted the importance of budgeting and financial planning to curb overspending during the summer months:
“With holidays, weddings, hen and stag dos, festivals and spontaneous social outings, it is easy to feel the pressure to say yes to everything and going over your budget.
“No matter the season, it is important to put your financial needs before your fear of missing out. Set up a plan for the year, budget accordingly, and remember that it is OK to say no! Speaking to your bank or a trusted financial adviser can help you understand your available assets to ensure you do not overspend.
“Interestingly, we have noticed our affluent customers struggling with this more. Feeling the pressure to keep up with others and to not miss out, but putting yourself and your financial needs first is a must. Making a clear financial plan and remembering your longer-term goals and the steps you’re taking to get there is a must to keep you on track. And our team is available to support in setting those plans and even updating them for those who did have a bigger summer than budgeted for.”
NatWest Premier offers everyday banking, expert financial planning, and exclusive support to ensure its customers are prepared for every stage of life and secure with their assets. Benefits include free airport lounge access, free travel insurance, and no FX fees.
